Article 16: Directors’ Fees
United Nations Model Double Taxation Convention between Developed and Developing Countries (2017 Update)
Article 16
Directors' Fees and Remuneration of Top-Level Managerial Officials
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the Board of Directors of a company which is a resident of the other Contracting State may be taxed in that other State.
Salaries, wages and other similar remuneration derived by a resident of a Contracting State in his capacity as an official in a top-level managerial position of a company which is a resident of the other Contracting State may be taxed in that other State.
OECD Model Tax Convention on Income and on Capital (2017 Update)
Article 16
Directors’ Fees
Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
Article 16 Bibliography
Arnold, Brian J, ‘Article 16 and Article 17 – Directors Fees and Artistes and sporstmen’ in: Thomas Ecker and Gernot Ressler (eds), History of Tax Treaties: The Relevance of the OECD Documents for the Interpretation of Tax Treaties (Linde 2011) https://perma.cc/W5BC-CS29
De Jaegher, Caroline, ‘International Taxation of Directors Fees: Article 16 of the OECD Model or Hot to Reconcile Disagreement among Neighbours’ (2013) 5 World Tax J 215 https://perma.cc/M45V-CQXF
Elisabeth Pamperl, "Article 16 of the OECD Model Convention: History, Scope and Future" (2015) Volume 1 WU Series https://perma.cc/VS4T-T2WE
Kunesch, Monika. “Interpretation Problems Concerning the Multilingualism of Tax Treaties Under Special Consideration of Directors’ Fees” in Michael Schilcher & Patrick Weninger, eds, Fundamental Issues and Practical Problems in Tax Treaty Interpretation (Vienna: Linde, 2008) 287 https://perma.cc/VZ23-82H2
Prokisch, Rainer. “Directors' Fees (Article 16 OECD Model Convention)” in Michael Lang et al, eds, Source Versus Residence: Problems Arising from the Allocation of Taxing Rights in Tax Treaty Law and Possible Alternatives (Austin: Wolters Kluwer Law & Business, 2008) 197 https://perma.cc/FT2P-7JJJ
Sengputa, DP. “India: Mohan Balakrisnan Pookulanagara” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2013 (Vienna: Linde, 2014) 285 https://perma.cc/G9JS-YZGU
Traversa, Edoardo & Gaëtan Zeyen. “Belgium: Employment Income from Directors – Physical Presence in the Source State” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2015 (Vienna: Linde, 2016) 269 https://perma.cc/7VM9-998R
Article 16 Cases
Conseil d’Etat (Supreme Administrative Court), 351065, 4 October 2013, Droit Fiscal, 2014, 20, 326 (France).
Court of Appeals, Liège, 15 January 2014, No 2012/RG/479 (Belgium).
Court of Appeals, Mons, 15 January 2014, No 2012/RG/763 (Belgium).
Cour d’Appel Bruxelles (Court of Appeals, Brussels), B 02/11, 11 June 2002 (Belgium).
Cour d’Appel Bruxelles (Court of Appeals, Brussels), R.2007/9474, 20 December 2007, Jurisprudence Fiscale¸2008, 691 (Belgium).
Finanzgericht Nordrhein-Westfalen (Tax Court Nordrhein-Westfalen), 2 K 5021/96 E, 15 December 1998, Entscheidungen der Finanzgerichte, 1999, 371 (Germany).
Gerechtshof Den Haag (Court of Appeal Den Haag), 2314/88 MII, 19 April 1989, Beslissingen in Belastingzaken, 1990, 353 (Netherlands).
Gerechtshof’s-Hertogenbosch (Court of Appeal, Hertongenbosch), 04/02498, 30 January 2009, Vakstudie Niews, 2009/20.14 (Netherlands).
Hof van Beroep Gent (Court of Appeals, Gent), 2000-12-05, 5 December 2000, Fiscoloog Internationaal, 2001, 207, 1 (Belgium).
Hoge Raad der Nederlanden (Supreme Court), 22.926, 18 September 1985, Beslissingen in Belastingzaken, 1985, 333* (Netherlands).
Logsfelsobb Birosag (Supreme Court), Kfv.I.35.496/2008/8, 2 July 2009 (Hungary).
Societe generale valeurs mobilieres v The Queen, 2016 TCC 131.
Verwaltungsgericthshof (Supreme Administrative Court), 92/13/0172, 31 July 1996 (Austria).