Law Asked by sygi on October 2, 2020
OECD model tax convention and its commentary serves as a basis for many Double Taxation Agreements between European countries. How, typically, is a person P taxed according to the tax convention in the following case:
Should the August salary be taxed only by the country B (which is the country where P is a resident when he receives the salary) or half-half between A & B, as P already earned half of their August income when they became a resident of B?
When you are paid is when the tax liability occurs.
Larger businesses operate on an accruals basis; when they become entitled to the income is when the tax liability occurs irrespective of when (or if) they get paid.
Answered by Dale M on October 2, 2020
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