PERENCANAAN PAJAK INTERNASIONAL - BAGIAN - 5

Summary

This transcript provides a detailed overview of Double Taxation Agreements (P3B), highlighting key terms, models, and structures used in international taxation agreements. It explains the different models used by countries, including the OECD, UN, and US models, and how they aim to minimize double taxation. Key topics covered include the types of income subject to taxation, methods of tax avoidance, and the roles of various tax authorities. The script also touches on practical applications of P3B, its legal framework, and examples of countries involved in such agreements. It's a comprehensive guide for understanding the intricacies of international tax treaties.

Takeaways

• 😀 The P3B (Double Taxation Avoidance Agreement) aims to minimize double taxation and prevent tax evasion between two countries.
• 😀 The P3B involves various terms like 'person', 'company', and 'national', which define the entities covered by the agreement.
• 😀 The P3B can be based on three models: OECD Model for developed countries, UN Model for developing countries like Indonesia, and US Model for the United States.
• 😀 The agreement's structure includes four major sections: scope, minimization of double taxation, prevention of tax avoidance, and other relevant matters.
• 😀 P3B addresses various tax-related issues, such as taxes on dividends, royalties, interest, and income from employment or business operations.
• 😀 The two primary models used for drafting P3B are the OECD and UN models, each tailored to the needs of different economies.
• 😀 The OECD Model is used by developed countries and focuses on tax treaties that prevent double taxation and enhance tax information exchange.
• 😀 The UN Model is designed for developing countries, emphasizing fair taxation without overburdening economic growth.
• 😀 P3B includes provisions on special taxation issues, such as permanent establishments, tax credits, exemptions, and other tax benefits.
• 😀 Key provisions in the P3B include regulations on foreign income, tax credits for taxes paid abroad, and methods to avoid double taxation between two countries.

Q & A

What is the main purpose of a Double Taxation Avoidance Agreement (P3B)?

The main purpose of P3B is to minimize double taxation and prevent tax evasion between two countries, particularly regarding their economic relations.

What are the three main models of P3B mentioned in the script?

The three main models of P3B are the OECD Model, the UN Model, and the US Model.

What is the OECD Model of P3B designed for?

The OECD Model is designed for developed countries, typically focusing on advanced economies.

Why is the UN Model of P3B particularly useful for developing countries?

The UN Model is designed with the specific needs of developing countries in mind, helping to balance their economic interests with those of developed countries in tax agreements.

What is the significance of the US Model of P3B, and what recent update was mentioned?

The US Model of P3B was revised in 2016 and incorporates recommendations from the OECD's Base Erosion and Profit Shifting (BEPS) guidelines, aiming to prevent tax avoidance strategies.

How can one determine the country of residence and the source country in a P3B agreement?

By replacing terms like 'constructing state' with the actual country names mentioned in the agreement, one can easily identify the country of residence and the source country.

What are the key sections that make up a typical P3B agreement?

A typical P3B agreement is divided into four main sections: the scope of the agreement, minimization of double taxation, prevention of tax avoidance, and miscellaneous provisions.

What types of income are typically covered under P3B agreements?

P3B agreements generally cover income such as permanent establishments, real estate income, corporate profits, dividends, interest, royalties, and salaries from employment.

What is meant by the term 'permanent establishment' in the context of P3B?

A permanent establishment refers to a fixed place of business through which a company operates in another country, and such establishments are subject to taxation under the terms of the P3B.

How do P3B agreements help avoid double taxation?

P3B agreements help avoid double taxation by providing methods like tax credits or exemptions for taxes paid in the other country, thus ensuring that income is not taxed twice in both jurisdictions.

What are some of the countries included in the list of P3B agreements mentioned in the script?

Countries included in the list of P3B agreements include South Africa, the USA, the UK, Japan, China, Germany, Canada, and many others.