International Tax Treaties and Cultural Heritage

Abstract

Cultural heritage organizations often have charitable status. More and more charities initiate activities (including fundraising activities) abroad. However, many countries limit tax benefits to resident charities. The underlying reason seems to be the so called Public Policy Rationale for tax incentives for charities. This rationale argues that charities perform functions that the government would otherwise have to perform itself for which reason government is willing to forgo tax revenue. This paper focuses on the question whether charities have access to the DTCs and if so, whether they have a special position. This question will be answered using the OECD, UN and US Model Conventions as a proxy.

Keywords: Tax Law, Cultural heritage, double tax conventions, international tax law

JEL Classification: K33, K34