Non-Discrimination in European and Tax Treaty Law

I. S. 404Introduction

Art. 24(3) of the OECD Model Tax Convention on Income and Capital (hereinafter OECD Model Convention or OECD MC) expressly provides that: “the taxation on apermanent establishment which an enterprise of aContracting State has in the other Contracting State shall not be less favourably levied in that other state than the taxation levied on the enterprises of that other State carrying on the same activities…”.

This paper aims to develop an analysis about the obligation of a contracting state to grant relief from juridical double taxation to a non-resident having a PE located in that state, based on the non-discrimination provision of Art. 24(3) of the OECD MC. In this context discussion will center on whether the aforementioned obligation of the state where the PE is located (hereinafter PE country or PE state), as it stems from Art. 24(3) of the OECD MC, constitutes a legal ground for the relief from juridical double taxation that the PE country should grant to a non-resident having a PE therein, only on the basis of its domestic law or also and regardless of the latter on the basis of the international agreements signed by the PE country with third states, i.e. double...