Taxation of cross-border inheritances and donations (FM nr. 165) 2021/3.1.2.1.2:3.1.2.1.2 Assessment of the personal link with a different person (donor and donee base)

Taxation of cross-border inheritances and donations (FM nr. 165) 2021/3.1.2.1.2

3.1.2.1.2 Assessment of the personal link with a different person (donor and donee base)

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

As mentioned in section 3.1.1.2, not all states assess the personal nexus concepts (residence, domicile, nationality) at the level of the deceased. Some states establish worldwide tax jurisdiction if the beneficiary has a personal nexus with their territory. Due to this difference in the assessment of the personal nexus, double or multiple taxation non-taxation is conceivable in a situation where none of the states involved can establish a personal nexus and/or an objective nexus.

For example, the deceased A is a resident of State A, which levies inheritance taxes on a worldwide basis based on the beneficiaries’ residence. Deceased A’s beneficiaries reside in State B, which levies inheritance taxes on a worldwide basis based on the deceased’s residence. The deceased’s property is located in State C, which does not consider the property a “domestic asset”. As a result, the cross-border inheritance of this example is not taxed anywhere as none of the states concerned will establish tax jurisdiction.

Deze functie is alleen te gebruiken als je bent ingelogd.