This article deals with the interaction between the taxation of business profits and income from immovable property under tax treaties, by analyzing the overlap between Articles 7 and 21 of the OECD (Organization for Economic Co–operation and Development) Model Convention in situations not covered by Article 6.1 where the income from immovable property is attributable to a PE in the other contracting state. Different approaches have been suggested by legal scholars to solve this issue; however, the Author envisages a new approach mainly based on the existence, in Article 6.3, of a treaty definition of income from immovable property which limits the definition of the term ‘business profits’ under treaty purposes. This subject has been selected for the last IFA Poster Programme 2008 at the Brussels Congress.
Intertax