Tax Treaty Between Albania and Italy

 
 
 

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Status: In Force
 
  Number of Albania Treaties:   23 - See All
 
  Number of Italy Treaties:   34 - See All
 
 

Introductory note on Tax Treaty Planning

 
Tax Treaties (double taxation agreements or DTAs) are international agreements or conventions concluded with the object of eliminating double taxation by the contracting states. To succeed in international tax planning, it is essential to engage in deep and far-reaching calculations. Tax treaties themselves and the OECD Commentary on the Model Convention give you practical hands-on guidance on international tax planning issues.
 
 

Treaty Shopping under the AlbaniaItaly Tax Treaty

 
Treaty shopping is the use of a tax treaty by a person resident in a country that is not a party to the treaty, i.e. in the present instance by someone who is a resident of neither Albania nor Italy. However, it is becoming more and more difficult to use provisions, which were intended to prevent double taxation, in such a way that they result, for the purposes of an international tax plan.
 
 

Tax Treaty news from the OECD

 
The OECD has released two reports submitted to its Committee on Fiscal Affairs by an Informal Consultative Group of business and government representatives. The Reports address, respectively:

(a) Technical issues relating to granting treaty benefits with respect to income of collective investment vehicles; and
(b) Procedural barriers to claims for treaty benefits that affect portfolio investors more generally.

These are issues which may impact on international tax planning transactions.
 
 
 
 
 
 
 

Know your Offshore Terms:

 
 
 

Tax Planning

It is both lawful and sensible to arrange business and personal affairs in such a way as to attract the lowest possible incidence of tax. The widening scope of tax laws, the complexity of their provisions, and high tax rates make it more necessary than ever for business enterprises and individuals alike to plan their taxable events with considerable care.
 

Initial Public Offerings (IPOs) on Offshore and Foreign Exchanges

Cross-border initial public offerings (“IPOs” or listings) on offshore and foreign exchanges create the opportunity to access hitherto untapped financial markets. As a general rule, open-ended funds tend to list on offshore exchanges where the IPO requirements are less onerous than on the major exchanges. The Dublin stock exchange has gone out of its way to attract funds, as have exchanges in a number of tax havens or international offshore financial centers (IOFCs), such as Bermuda, the Cayman Islands, the Channel Islands and Luxembourg.
 

Residence of Corporations

Article 4.1 of the OECD Model Convention deals with the question of corporate residence by reference to “the place of management or any other criterion of a similar nature”. Note, however, that the definition of a resident of a Contracting State in specific treaties may exclude foreign held companies which are exempt from tax on their foreign income. This point should be watched in developing a corporate international tax plan.
 

Offshore Purchase and Sales Companies

Where opportunities arise to purchase a single item for resale at a substantial profit, a company in a tax haven or international offshore financial center (IOFC) could be used to take the profit (e.g. purchase of liquidation goods, etc.). A similar structure could be used for a bulk purchase of goods for subsequent on¬-sale in smaller lots. Substantial discounts may be obtained by purchasing in bulk from third parties for onward sale to group companies or third parties. An offshore purchase and sales company may, for these reasons, be included in an international tax plan.
 
 
 
 
 
 
 
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