Ändringen av artikel 7 i OECD
s modellavtal
States have sovereignty in deciding how to tax business profits. If two states wish to tax the same profit that belongs to the same taxpayer, double taxation will arise. The increasing number of multinational companies gives rise to double taxation problems and the states have to co-operate to find out how to avoid such problems. The OECD Model Tax Convention includes an article in how to determine the rights to tax business profits. This article has been a subject of discussion and a committee of the OECD has been working to develop a new article 7.The work in proposing this new article has had as its aim to reassure that the interpretations of this regulation is made in the same way. The aim of this thesis is to investigate the current article 7 in the Model Tax Convention as well as the revised discussion draft of the new article 7. This will be done through a comparison of the articles and it will also investigate the reasons for and the consequences of the proposed new article.