Skatteskopakter

Skatteskopakter, translated as "tax scope agreements" or "tax treaties," are bilateral or multilateral agreements between countries that aim to prevent double taxation of income and capital. These treaties establish rules for determining which country has the right to tax certain types of income and how taxes are levied, thereby facilitating international trade and investment.

The primary objectives of skatteskopakter include preventing the same income from being taxed twice by two different jurisdictions, which can discourage cross-border economic activity. They also aim to provide tax certainty and a level playing field for businesses and individuals operating internationally. Furthermore, these agreements often include provisions for the exchange of tax information between the contracting states to combat tax evasion and avoidance.

Key elements typically addressed in skatteskopakter include definitions of residence, rules for taxing business profits, dividends, interest, royalties, capital gains, and income from employment and independent personal services. They also often contain mechanisms for resolving disputes that may arise concerning the interpretation or application of the treaty, such as mutual agreement procedures.

The Organisation for Economic Co-operation and Development (OECD) Model Tax Convention is a widely influential template that many countries use as a basis for negotiating their skatteskopakter. Adherence to such models helps ensure consistency and predictability in international tax relations. The specific provisions of each skatteskopakt are unique to the countries involved and reflect their respective tax systems and economic interests.