Limitations on Benefits Articles Overview and Technical Issues文章概述了效益与技术问题的局限性.pptVIP

Accessing Income Tax Treaties Through Competent Authority – A Ray of Hope When All Else Fails Barbara Angus Peter Daub Agenda Introduction Limitations on Benefits Articles: Overview and Technical Issues Zero Withholding on Dividends: “Super LOB” Requirements Discretionary Grant of Treaty Benefits Trends Regarding LOB Provisions Limitations on Benefits Articles: Overview and Technical Issues Peter Daub Baker McKenzie LLP Washington, D.C. Limitations on Benefits Articles: Overview and Technical Issues Must be a resident!! Publicly-Traded Corporations and Their Subsidiaries Underlying concept is that if a corporation is publicly-traded in a jurisdiction, then likely to be owned by persons in that jurisdiction But what about base erosion? Publicly-Traded Corporations and Their Subsidiaries The principal class of claimant’s shares is listed on a recognized stock exchange and is regularly traded on one or more recognized stock exchanges, or Shares representing at least 50 percent of the aggregate voting power and value of the company are owned directly or indirectly by five or fewer companies entitled to benefits under first bullet Publicly-Traded Corporations and Their Subsidiaries “Recognized stock exchange” generally includes, in the case of a treaty with an EU country, principal stock exchanges in EU countries, but many treaties require listing in US or treaty partner “Regularly trading” generally broader Barbados treaty – both in Barbados Investments by open-end funds that own relatively small percentage interest Sometimes even more concentrated (than five) ownership required – why? Residence/qualified residence of intermediate entities Ownership/Base Erosion 50 percent or more of the aggregate voting power and value owned directly or indirectly by persons who are themselves qualified persons on the basis of residence only (e.g., individuals, governments) and less than 50 percent of the person’s gross income for that taxable or chargeable period is paid or accr