Tax Treaties In Tax Compliance And Planning

Bilateral tax treaties are agreements between sovereign states to enhance trade, mitigate double taxation and resolve disputes. Bilateral tax treaties encompass income tax treaties as well as estate and gift tax treaties.

In any cross-border matter, it is important to ascertain whether a bilateral tax treaty may apply. That generally involves a determination of whether an individual or entity is a resident of a treaty country, satisfies the limitation on benefits article of the treaty and the substantive or procedural articles.

Tax treaties can provide benefits not available under the local statutory law. There is much emphasis on the improper use of income tax treaties as a result of the BEPS initiative; the United States is in the process of introducing a new model income tax treaty, which would circumscribe treaty benefits.

It is essential to carefully evaluate the specific terms of a tax treaty as to its applicability in a specific situation.

Income Tax Treaties

Our services for income tax treaty matters include:

  • Whether an individual or resident is a treaty resident
  • Treaty tiebreaker provision
  • Qualification under the limitation on benefits provision
  • Eligibility for favorable rates under the dividends, interest, royalty or other income articles
  • Income from employment
  • Whether a permanent establishment exists
  • Attribution of profits
  • Associated enterprises
  • Relief from double taxation and source of income provisions
  • Advising and processing mutual agreement procedures

Estate And Gift Tax Treaties:

Our services for estate and gift tax matters include:

  • Residence
  • Situs of assets
  • Tax credits
  • Other benefits or exemptions
  • Mutual agreement procedures

We work with foreign and U.S. clients to create tailored strategies that meet their goals and comply with the requirements of multiple jurisdictions.

Customized Solutions

We work with foreign and U.S. clients to create tailored strategies that meet their goals and comply with the requirements of multiple jurisdictions Tampa, Florida; San Francisco, California; Washington, D.C and Zurich, Switzerland.