Article 21: Other Income
United Nations Model Double Taxation Convention between Developed and Developing Countries (2017 Update)
Article 21
Other Income
Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.
The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Convention and arising in the other Contracting State may also be taxed in that other State.
OECD Model Tax Convention on Income and Capital (2017 Update)
Article 21
Other Income
Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.
The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.
Article 21 Bibliography
Berglund, Martin. “Sweden: Is Fictitious Income Covered by Tax Treaties?” in Eric CCM Kemmeren et al, eds, Tax Treaty Case Law Around the Globe 2014 (Amsterdam: International Bureau of Fiscal Documentation, 2014) 271 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-Around-Globe-2014>
Kemmeren, Eric CCM. “Netherlands: Income from Former Research and Fixed Base and an Origin-Based Alternative” in Eric CCM Kemmeren et al, eds, Tax Treaty Case Law Around the Globe 2014 (Amsterdam: International Bureau of Fiscal Documentation, 2014) 55 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-Around-Globe-2014>
Rust, Alexander. “Other Income (Article 21 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) 327 <https://lrus.wolterskluwer.com/store/product/source-versus-residence-problems-arising-from-the-allocation-of-taxing-rights-in-tax-treaty-law-and-possible-alternatives/>
Vinnitskiy, Danil V. “Russia: Withholding Tax on Agency Fees under the Russia-Germany Tax Treaty (Articles 14, 15 and 21)” in Michael Lang et al, eds, Tax Treaty Case Law Around the Globe 2015 (Vienna: Linde, 2016) 257 <https://www.ibfd.org/IBFD-Products/Tax-Treaty-Case-Law-around-Globe-2015>
Article 21 Cases
Bundesfinanzhof (Federal Fiscal Court), I R 32/92, 16 December 1992, Bundessteuerblatt, 1993, II, 399 (Germany).
Bundesfinanzhof (Federal Fiscal Court), I R 92/09, 8 December 2010, Entscheidungen der Finanzgerichte, 2010, 780 (Germany).
Conseil d’Etat (Supreme Administrative Court), 27391, 10 June 1983, Droit Fiscal, 1984, 10, 402 (France).
Conseil d’Etat (Supreme Administrative Court), 351065, 4 October 2013, Droit Fiscal, 2014, 20, 326 (France).
Copesul Companhia Petroquimica do Sul v National Treasury, REsp 1161467 RS, Superior Court of Justice, 2012 (Brazil).
Cour Administrative d’Appel Paris (Administrative Court of Appeal, Paris), 93PA00572, 8 July 1997, Droit Fiscal, 1998, 24, 524 (France).
Ernest J Clayton v United States Internal Revenue Service¸30 June 1995, 76 AFTR 2d (RIA) 95-5056 (United States).
Federal Commercial Court of the North-West District, 3 February 2014, No A56-20669/2013 (Russia).
Finanzgericht Nordrhein-Westfalen (Tax Court Nordrhein-Westfalen), 10 K 1133/05, 11 September 2008, Entscheidungen der Finanzgerichte, 2009, 29 (Germany).
Furness, Withy & Co v Her Majesty the Queen, 29 January 1968, [1968] CTC 35.
Gerechtshof Amsterdam (Court of Appeal, Amsterdam), 03/03165, 14 March 2005, Vakstudie-Nieuws, 2005, 35.7 (Netherlands).
Gerechtshof Leeuwarden (Court of Appeal, Leeuwarden), 1137/82, 24 June 1983, Beslissingen in Belastingzaken, 1984, 302 (Netherlands).
Hof van Beroep Antwerpen (Court of Appeals, Antwerpen), 1984-05-07, 7 May 1984, Jurisprudence Fiscale, 1984, 186 (Belgium).
Hof van Beroep Antwerpen (Court of Appeals, Antwerpen), 2000/25, 12 October 1999, Jurisprudence Fiscale, 2000, 154, 413 (Belgium).
Hof van Beroep Gent (Court of Appeals, Gent), 1994/FR/154, 3 January 2002, Fiscoloog Internationaal, 2002, 219, 3 (Belgium).
Hof van Cassatie/Cour de Cassation (Supreme Court), 2003/282, 3 October 2003, Jurisprudence Fiscale, 2003, 10, 1006 (Belgium).
Hoge Raad der Nederlanden [Supreme Court of the Netherlands], 6 December 2013, No 12/00252 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 37.651, 5 September 2003, Vakstudie-Nieuws, 2003, 46.7 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 37.670, 5 September 2003, Vakstudie-Nieuws, 2003, 44.5 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 39.385, 18 June 2004, Beslissingen in Belastingzaken, 2004, 314 (Netherlands).
Hoge Raad der Nederlanden (The Netherlands, Supreme Court), 44.050, 19 June 2009, Vakstudie-Nieuws, 2009, 29.10 (Netherlands).
Högsta förvaltningsdomstolen [Supreme Administrative Court], 4 June 2013, No 368-13 (Sweden).
Inter Partner Assistance Prestadora de Servicos de Assistencia 24 horas Ltda v National Treasury, APELREEX 00244617420054036100/SP, 3rd Regional Federal Court TRF3, 2012 (Brazil).
Keskuseverolautakunta (Central Tax Board), KVL 002/2012, 1 February 2012 (Finland).
Korkein Hallinto-oikeus (Supreme Administrative Court), KHO: 1999:34, 14 June 1999 (Finland).
Korkein Hallinto-oikeus (Supreme Administrative Court), KHO: 2002:71, 6 November 2002 (Finland).
Ostre Landsret (High Court of Eastern Denmark), B-246-11/SKM2012.82.OLR, 28 November 2011 (Denmark)
Regerungsratten (Supreme Administrative Court), RA 2003 ref 20, 8 April 2003 (Sweden).
Resolute Management Services Ltd and Mrs Kathleen Ann Haderlein v Commisioners for HM Revenue and Customs,27 August 2009, [2008] STC 1202 (United Kingdom).
Verwaltungsgerichtshof (Supreme Administrative Court), 94/13/0220, 19 March 1997 (Austria).
Verwaltungsgericht Bern (Administrative Court, Bern), 1996-08-30, 30 August 1996, Steuerentscheid, 1997, A 31.1, 5 (Switzerland).