UN Panel Approves More Source Taxation for Global Transport (1)

A United Nations panel approved several changes Tuesday to a section of the UN model double tax treaty that aims to expand taxation of global airlines and shipping firms based on where trips begin and end.

The UN Tax Committee agreed on technical changes to what is known as source-based taxation and a revised commentary for the model treaty’s Article 8 to clarify its application in multi-leg air journeys and in cases where a jurisdiction doesn’t use net taxation.

The group also clarified a delineation between Article 8 and another section of the treaty dealing with cross-border services.

The amendments ...