One of the assumptions of tax economic literature is that capital more is mobile than labor because there are fewer restriction on the mobility of capital while individuals are subject to material limitations to their mobility and to immigration law constraint also because of restrictions. Domestic tax systems and tax treaties reflect this assumption about the limited mobility of labor by preserving the taxing power of the residence-country and allowing the source-country to tax the income of individual operating cross-border only if certain requirements are met. The paramount example is Art. 15 of the OECD Model Tax Convention on Income and on Capital together with its Commentary (hereinafter respectively the ‘Commentary’, and the ‘Model’ or ‘Convention’), concerning income from employment: when an individual carries out cross-border dependent personal services, Art. 15 §1 attributes the concurrent power to tax to the residence-ountry (the country where the individual is resident) and the source-country (the country where activities are carried out), but Art. 15 § 2 introduces a very broad derogation which effectively preserves the exclusive taxation of the residence-country in most cases of mobile labor. Similarly pursuant to Art. 7 business profits or independent personal services can be taxed in the source-country only if there is a permanent establishment or a fixed base in such a country. Finally pensions under Art. 18 are taxed only in the country of residence.
The taxation of highly-mobile individuals: the case of entertainers and sportspersons
Garbarino, Carlo
2017
Abstract
One of the assumptions of tax economic literature is that capital more is mobile than labor because there are fewer restriction on the mobility of capital while individuals are subject to material limitations to their mobility and to immigration law constraint also because of restrictions. Domestic tax systems and tax treaties reflect this assumption about the limited mobility of labor by preserving the taxing power of the residence-country and allowing the source-country to tax the income of individual operating cross-border only if certain requirements are met. The paramount example is Art. 15 of the OECD Model Tax Convention on Income and on Capital together with its Commentary (hereinafter respectively the ‘Commentary’, and the ‘Model’ or ‘Convention’), concerning income from employment: when an individual carries out cross-border dependent personal services, Art. 15 §1 attributes the concurrent power to tax to the residence-ountry (the country where the individual is resident) and the source-country (the country where activities are carried out), but Art. 15 § 2 introduces a very broad derogation which effectively preserves the exclusive taxation of the residence-country in most cases of mobile labor. Similarly pursuant to Art. 7 business profits or independent personal services can be taxed in the source-country only if there is a permanent establishment or a fixed base in such a country. Finally pensions under Art. 18 are taxed only in the country of residence.File | Dimensione | Formato | |
---|---|---|---|
2017 Entertainers accettazione.pdf
non disponibili
Tipologia:
Allegato per valutazione Bocconi (Attachment for Bocconi evaluation)
Licenza:
NON PUBBLICO - Accesso privato/ristretto
Dimensione
176.94 kB
Formato
Adobe PDF
|
176.94 kB | Adobe PDF | Visualizza/Apri |
2017 Entertainers.pdf
non disponibili
Tipologia:
Documento in Pre-print (Pre-print document)
Licenza:
NON PUBBLICO - Accesso privato/ristretto
Dimensione
148.12 kB
Formato
Adobe PDF
|
148.12 kB | Adobe PDF | Visualizza/Apri |
I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.