Article 18: Pensions and Social Security Payments
United Nations Model Double Taxation Convention between Developed and Developing Countries (2017 Update)
Article 18
Pensions and Social Security Payments
Article 18 (alternative A)
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State.
Article 18 (alternative B)
Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment may be taxed in that State.
However, such pensions and other similar remuneration may also be taxed in the other Contracting State if the payment is made by a resident of that other State or a permanent establishment situated therein.
Notwithstanding the provisions of paragraphs 1 and 2, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State.
OECD Model Tax Convention on Income and on Capital (2017 Update)
Article 18
Pensions
Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.
Article 18 Bibliography
Andreoni, Walter. “Cross-Border Tax Issues of Pensions” (2006) 34:5 Intertax 245 https://perma.cc/6FZB-VRK4
Blum, Cynthia A., Migrants with Retirement Plans: The Challenge of Harmonizing Tax Rules (April 12, 2015). Florida Tax Review, Vol. 17, No. 1, 2015 . Available at SSRN: https://perma.cc/6ZQR-TBQG
Blum, Cynthia A. and Singer, Paula N., A Proposal for Taking the Complexities Out of Taxing U.S. Retirement Distributions to Foreign Nationals (2012). Florida Tax Review, Vol. 11, No. 10, 2012. Available at SSRN: https://perma.cc/L9TW-RT4U
Bobeldijk, Arco and K Goossens, ‘The Tenability of the Dutch Preservative Tax Assessment in Relation to Pension Benefits’ (2011) 39 Intertax 85.
Genser, Bernd and Holzmann, Robert, The Taxation of Internationally Portable Pensions: Fiscal Issues and Policy Options (January 18, 2016). CESifo Working Paper Series No. 5702. Available at SSRN: https://perma.cc/VM2B-J7K8
Genser, Bernd and Holzmann, Robert, Frontloaded Income Taxation of Old-Age Pensions: For Efficiency and Fairness in a World of International Labor Mobility (2018). CESifo Working Paper No. 7423. Available at SSRN: https://perma.cc/8YE8-6X97
Holzmann, Robert, Taxing Pensions of an Internationally Mobile Labor Force: Portability Issues and Taxation Options (January 20, 2016). CESifo Working Paper Series No. 5715. Available at SSRN: https://perma.cc/ADM8-ZN9V
Kemmeren, Eric CCM. “Netherlands: Exit Taxation and Pensions: Tax Treaty Override?” in Eric CCM Kemmeren et al, eds, Tax Treaty Case Law around the Globe 2012 (Vienna: Linde, 2013) 231 https://perma.cc/HM97-AF2P
Kemmeren, Eric CCM. “Pensions (Article 18 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) 253 https://perma.cc/FC8S-Z6Q9
Mintz, Jack and Richardson, Stephen and Submitter, U Calgary School of Pub Policy, Not Just for Americans: The Case for Expanding Reciprocal Tax Exemptions for Foreign Investments by Pension Funds (November 6, 2014). The School of Public Policy Publications, 2014. Available at SSRN: https://perma.cc/R3QN-FVA3
Mossener, Hans-Jorg. (2000) 85b Cahiers de Droit Fiscal Intl.
Oringer, Andrew L. and Mackenzie-Smith, Roderick, Pension and Compensation Aspects of the U.S-U.K. Double Taxation Treaty. Tax Notes, Vol. 103, No. 4, April 26, 2004. Available at SSRN: https://perma.cc/3427-CZLK
Rust, Alexander. “Germany: Pensions vs. Business Income” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2013 (Vienna: Linde, 2014) 277 https://perma.cc/2HDQ-6Z99
Article 18 Cases
Abeid v Commissioner of Internal Revenue, 122 TC 404 (US Tax Ct 2004).
Abrahamson v MNR, [1991] 1 CTC 2061 (TCC).
Blauer v The Queen, 2007 TCC 706.
Bundesfinanzhof [Federal Tax Court],7 December 2011 (2012), I R 5/11, IStR (Germany).
Coblentz v The Queen, [1996] 3 CTC 295 (FCA).
Corte Suprema di Cassazione (Supreme Court of Cassation), 1550,2012, 3 February 2012 (Italy).
Donnelly v The Queen, 2007 TCC 363.
Dumoulin v The Queen(2001), [2002] 4 CTC 2031 (TCC).
Finanzgericht Hessen, 13 K 628/04, 7 July 2005 (Germany).
George Constantine v Commissioner of Internal Revenue, 23 December 1981, 43 TCM (CCH) 158 (United States).
Gerechtshof Den Haag (Court of Appeal, The Hague), 22/84 MI, 26 March 1984, Beslissingen in Belastingzaken, 1984, 249 (Netherlands).
Gerechtshof-Hertongenbosch (Court of Appeal, Hertongenbosch), 27 June 1984, Vakstudie-Niews, 1985, 198 (Netherlands).
Hausmann Estate v The Queen, [1998] 4 CTC 2232 (TCC).
Hof van Beroep Antwerpen (Court of Appeals, Antwerpen), 1985-04-23, 23 April 1985m Fiscale Jurisprudentie, 1985, 129, 223 (Belgium).
Hof van Cassatie/Cour de Cassation (Supreme Court), F.08/0040.N, 12 November 2009, Fiscoloog, 2009, 1185, 11 (Belgium).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 3 May 2000, Beslissingen in Belastingzaken, 2000, 296c* (Netherlands).
Hoge Raad der Nederlanden [Supreme Court of the Netherlands], 15 April 2011, No BNB 2011/160 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 24 315, 13 May 1987, Beslissingen in Belastingzaken, 1987, 207 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 35.242, 20 December 2000, Beslissingen in Belastingzaken, 2001, 124* (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 37.657, 5 September 2003, Beslissingen in Belastingzaken, 2003, 380c* (Netherlands).
Hoge Raad der Nederlanden (Supreme Court), 37.978, 23 January 2004, Beslissingen in Belastingzaken, 2004, 132 c* (Netherlands).
Hoge Raad der Nederlanden (Supreme Court), 38.098, 23 January 2004, Vakstudie-Nieuws, 2004, 9.6 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 09/03847, 13 May 2011, Beslissingen in Belastingzaken, 2011, 216 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 40.192, 13 May 2005, Beslissingen in Belastingzaken, 2005, 235 (Netherlands).
Hughes v The Queen(2001), [2002] 3 CTC 2184 (TCC).
Isabelle Bichindaritz v Internal Revenue Service, 29 December 2005, 90 TCM (CCH) 639 (United States).
Karakochuk v The Queen, 2005 TCC 479.Korfage v The Queen, 2016 TCC 69. Larkin v The Queen, 2006 TCC 61.
Leisser v The Queen, 2011 TCC 472.
Levert v The Queen,[2001] 4 CTC 2581 (TCC).
Merrins v The Queen, [2002] 4 CTC 2085 (TCC).
Merrins v The Queen, 2005 TCC 470.
Nanne v The Queen,[2000] 1 CTC 2776 (TCC).
Paul Dana Rodrigue v Her Majesty the Queen, 17 May 2001, 2001 FCA 157.
Pope v The Queen, 2009 TCC 498.
R v Cruickshank, [1977] CTC 344 (FCTD).
Rodrigue v Canada (Attorney General), 2001 FCA 157.
Ruparel v The Queen, 2012 TCC 268.
Scott Estate v The Queen, [1988] 1 CTC 45 (FCTD).
Specht v TheQueen, [1975] CTC 126 (FCTD).
Swantje v. Canada, [1996] 1 SCR 73
Tribunal Administratif Geneve (Administrative Court Geneva), ATA/238/2011, 12 April 2011 (Switzerland).
Trsic v The Queen,[1998] 3 CTC 2852 (TCC).
Tsukada v The Queen,2002 FCA 241.
Verwaltungsgerichtshof (Supreme Administrative Court), 90/14/0222, 16 November 1993 (Austria).
Vestre Landsret (High Court, Western Denmark), 3 afdeling B-2919, 22 January 2002, Tidsskrift for Skatter, 2002, 221 (Denmark).