n SA Mercantile Law Journal = SA Tydskrif vir Handelsreg - Some thoughts on the interpretation of tax treaties in South Africa
|Article Title||Some thoughts on the interpretation of tax treaties in South Africa|
|© Publisher:||Juta Law Publishing|
|Journal||SA Mercantile Law Journal = SA Tydskrif vir Handelsreg|
|Affiliations||1 University of the Stellenbosch|
|Publication Date||Jan 2012|
|Pages||31 - 52|
South Africa is a party to approximately 70 bilateral treaties for the prevention of double taxation on different types of income. Most of South Africa's treaties are based in some way on the Model Tax Convention drafted by the Organisation for Economic Co-operation and Development (OECD MTC). The OECD MTC is by far the most influential of the model tax conventions and is used widely, not only by OECD members, but also by non-OECD members (such as South Africa). It is important to note, though, that the OECD MTC is not an international treaty that is binding on its members. As a model tax convention, it is used by countries as a basis from which to negotiate tax treaties. Thus, although an actual treaty between two countries (eg, South Africa and another country) may not be worded exactly like the OECD MTC, many of the terms used in the actual treaty may adopt the wording of the model or contain its wording with some adjustments. The OECD MTC is updated every two to three years, and is accompanied by commentary drafted by the OECD.
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