Model Tax Convention on Income and on Capital FULL VERSION (as it read on 21 November 2017) Model Tax Convention on Income and on Capital Volume I and II (Updated 21 November 2017) OECD Committee on Fiscal Affairs Thisdocumentandanymapincludedhereinarewithoutprejudicetothestatusof orsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersand boundariesandtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2019),ModelTaxConventiononIncomeandonCapital2017(FullVersion),OECDPublishing. http://dx.doi.org/10.1787/g2g972ee-en ISBN978-92-64-30378-2(print) ISBN978-92-64-30699-8(PDF) ISBN978-92-64-28794-5(condensedprint) ISBN978-92-64-28795-2(condensedpdf) CorrigendatoOECDpublicationsmaybefoundonlineat:www.oecd.org/publishing/corrigenda. ©OECD2019 Youcancopy,downloadorprintOECDcontentforyourownuse,andyoucanincludeexcerptsfromOECD publications,databasesandmultimediaproductsinyourowndocuments,presentations,blogs,websitesand teachingmaterials,providedthatsuitableacknowledgementofOECDassourceandcopyrightownerisgiven. Allrequestsforpublicorcommercialuseandtranslationrightsshouldbesubmittedtorights@oecd.org. Requestsforpermissiontophotocopyportionsofthismaterialforpublicorcommercialuseshallbeaddressed directlytotheCopyrightClearanceCenter(CCC)[email protected]çaisd’exploitationdu droitdecopie(CFC)[email protected]. FOREWORD ThisfullversionoftheOECDModelTaxConventioncontainsthefulltextof the Model Tax Convention on Income and on Capital as it read on 21 November 2017, including the Articles, the Commentaries, the non-OECD economies’ positions, the Recommendation of the OECD Council, the historical notes and the full text of a number of background reports adopted after 1977. New editions of this book will be published regularly to reflectupdates. The Model Tax Convention of November 2017 is also available in web and condensedformats.Thewebformatincludesthetextofthefullversionand features such as extensive internal linking, making it easy to link from an ArticletoitsCommentary;fastsearchingcapabilities;theabilityfortheuser to attach notes to specific areas of text; and cut and paste capabilities.The tentheditionofthecondensedversion,publishedinDecember2017,includes onlytheArticles,theCommentaries,thenon-OECDeconomies’positionsand theRecommendationoftheOECDCouncil. I-iii MODELTAXCONVENTION(FULLVERSION)–©OECD2019 ACKNOWLEDGEMENT TheOECDCentreforTaxPolicyandAdministrationwouldliketoexpressits gratitudetoJacquesSassevilleforhisinvaluablecontributionsovermorethan 20yearstothedevelopmentandpublicationofthisandearliereditionsofthe OECDModelTaxConvention. I-v MODELTAXCONVENTION(FULLVERSION)–©OECD2019 TABLE OF CONTENTS Volume I Introduction .............................................. I-1 A.Historicalbackground ............................... I-1 B. InfluenceoftheOECDModelConvention .............. I-4 C.Taxpolicyconsiderationsthatarerelevanttothedecision ofwhethertoenterintoataxtreatyoramendan existingtreaty...................................... I-5 D.PresentationoftheModelConvention................. I-7 ModelConvention ......................................... M-3 CommentariesontheArticlesoftheModelConvention CommentaryonArticle1............................... C(1)-1 CommentaryonArticle2............................... C(2)-1 CommentaryonArticle3............................... C(3)-1 CommentaryonArticle4............................... C(4)-1 CommentaryonArticle5............................... C(5)-1 CommentaryonArticle6............................... C(6)-1 CommentaryonArticle7............................... C(7)-1 CommentaryonArticle8............................... C(8)-1 CommentaryonArticle9............................... C(9)-1 CommentaryonArticle10.............................. C(10)-1 CommentaryonArticle11.............................. C(11)-1 CommentaryonArticle12.............................. C(12)-1 CommentaryonArticle13.............................. C(13)-1 CommentaryonArticle14[Deleted] ..................... C(14)-1 CommentaryonArticle15.............................. C(15)-1 CommentaryonArticle16.............................. C(16)-1 CommentaryonArticle17.............................. C(17)-1 CommentaryonArticle18.............................. C(18)-1 CommentaryonArticle19.............................. C(19)-1 CommentaryonArticle20.............................. C(20)-1 CommentaryonArticle21.............................. C(21)-1 CommentaryonArticle22.............................. C(22)-1 CommentaryonArticles23Aand23B................... C(23)-1 CommentaryonArticle24.............................. C(24)-1 CommentaryonArticle25.............................. C(25)-1 CommentaryonArticle26.............................. C(26)-1 CommentaryonArticle27.............................. C(27)-1 I-vii MODELTAXCONVENTION(FULLVERSION)–©OECD2019 CommentaryonArticle28.............................. C(28)-1 CommentaryonArticle29.............................. C(29)-1 CommentaryonArticle30.............................. C(30)-1 CommentaryonArticles31and32 ...................... C(31/32)-1 Non-OECDEconomies’PositionsontheOECDModelTaxConvention Introduction.......................................... P-3 PositionsonArticle1anditscommentary................ P(1)-1 PositionsonArticle2anditscommentary................ P(2)-1 PositionsonArticle3anditscommentary................ P(3)-1 PositionsonArticle4anditscommentary................ P(4)-1 PositionsonArticle5anditscommentary................ P(5)-1 PositionsonArticle6anditscommentary................ P(6)-1 PositionsonArticle7anditscommentary................ P(7)-1 PositionsonArticle8anditscommentary................ P(8)-1 PositionsonArticle9anditscommentary................ P(9)-1 PositionsonArticle10anditscommentary............... P(10)-1 PositionsonArticle11anditscommentary............... P(11)-1 PositionsonArticle12anditscommentary............... P(12)-1 PositionsonArticle13anditscommentary............... P(13)-1 PositionsonArticle14anditscommentary[Deleted]....... P(14)-1 PositionsonArticle15anditscommentary............... P(15)-1 PositionsonArticle16anditscommentary............... P(16)-1 PositionsonArticle17anditscommentary............... P(17)-1 PositionsonArticle18anditscommentary............... P(18)-1 PositionsonArticle19anditscommentary............... P(19)-1 PositionsonArticle20anditscommentary............... P(20)-1 PositionsonArticle21anditscommentary............... P(21)-1 PositionsonArticle22anditscommentary............... P(22)-1 PositionsonArticles23Aand23Banditscommentary .... P(23)-1 PositionsonArticle24anditscommentary............... P(24)-1 PositionsonArticle25anditscommentary............... P(25)-1 PositionsonArticle26anditscommentary............... P(26)-1 PositionsonArticle28anditscommentary............... P(28)-1 PositionsonArticle29anditscommentary............... P(29)-1 PositionsonArticle30anditscommentary............... P(30)-1 Volume II PreviousreportsrelatedtotheModelTaxConvention.......... R-i Transferpricing,correspondingadjustments andthemutualagreementprocedure..................... R(1)-1 I-viii MODELTAXCONVENTION(FULLVERSION)–©OECD2019