The Relationship between Taxation and Bilateral Investment Agreements - Case of the Slovak Republic
The International Journal of Research in Business Studies and Management, Volume 3, Issue 1 pages 9-22, 2016, ISSN Print 2394-5923 ISSN Online 2394-5931
Posted: 7 Mar 2016
Date Written: January 2, 2016
One of the key characteristic features of the recent globalized world is cross-border investments. Due to this fact foreign investors and their investments in host countries need appropriate protection. Alongside with legal issues of protection of investors, another important issue arises too, namely necessity to eliminate double international taxation. Both issues, protection of foreign investors and investments plus elimination of double taxation, are covered by international, mostly bilateral treaties. This paper focuses on interaction between bilateral investment treaties and bilateral tax treaties, searching for potential overlap between them, and whether and how it is restricted. The paper is divided to the three sections, where first section focuses on the principles of treatment that are incorporated in the bilateral investment treaties. Second section puts under scrutiny detail relationship between bilateral investment treaties' clauses and taxation. Third section surveys dispute settlement according bilateral investment treaties established by Slovakia. Detailed study of relation between bilateral investment and bilateral tax treaty shows, that in case of those treaties established by Slovak republic there is no overlap between them.
Keywords: investments, taxes, bilateral investment treaties, bilateral tax treaties, overlap, arbitration
JEL Classification: F02, F30, K34, K33
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