Non-Discrimination in European and Tax Treaty Law

I. S. 488Introduction

The world market has grown substantially in the latest years due to the development of the international economy and cultural integration, high-speed information, media accessibility, and transportation facilities – better known as globalization. These elements have enabled the appearance and expansion of multinational enterprises.

Multinational enterprises (MNEs) set up business in more than one state, allocating in different jurisdictions, for example, head office, industries, warehouses, distributors, shared services or financing units, as well as research and development processes, registration and administration of intellectual property. Apart from business strategy, the purpose of this multi-allocation is expand efficiency, reach different consumption and production markets, and in the end higher profits.

As taxes can be considered to be one of the most significant expenditures for an MNE, minimizing tax helps in the aim of achieving higher profits. Moreover, taxes can enable or preclude the beginning and the continuation of MNEs. These factors have made international tax planning a very important factor in MNEs’ deliberations.

The existence of double tax conventi...