3.1.2.2 Unilateral double tax relief by the state of the personal nexus

One could observe that the granting of a unilateral double tax relief (by means of an exemption) by the state of the personal nexus can give rise to double non-taxation of the cross-border inheritance and donation. For example, State A establishes a personal nexus if the deceased is a resident of its territory. Furthermore, it provides a unilateral double taxation relief by means of an exemption with regard to foreign-located property (regardless of whether the property is actually subject to tax abroad). If, however, this property is not actually taxed in State B (e.g. because it does not fall within the definition of “domestic assets” or because State B has abolished its death tax laws), the property is not taxed either by State A or by State B.