3.4.5 Interim conclusion: bilateral tax treaties and group companies

There are several provisions in bilateral provisions that pay attention to the group situation of a company. For example, various tax treaties contain a provision aimed at avoiding double taxation as a result of corporate restructurings. The provisions that concern group situations and withholding taxes do not show a clear trend: some treaties provide for an exemption of withholding taxes in group situations, while in other situations the exemption does not apply if there is a group situation. The provisions aimed at preventing economic double taxation in group situations use different methods but pursue the same objective.

The description in this section shows that when agreeing bilateral tax treaties in various cases it is considered important to give more attention to the group situation of an entity. In particular, this ensures that excessive taxation in group situations can be avoided (restructuring provisions, reduction of juridical double taxation and avoidance of economic double taxation).