A Study On Interpretation Method Of Tax Treaties

In the process of taxation on the income related to foreign countries, the interpretation and application of tax treaties are often involved. Although tax treaties are more flexible compared with domestic legislation, it may still cause international double taxation and tax treaty conflicts if the contracting parties have difference concerning the tax treaties' interpretation or application. A deep study on tax treaties' interpretation method will help avoid international double taxation and promote the fairness and effect of international taxation. With the research method of deduction and induction, comparison combining with analysis and theory combining with practice applied, first introduces the classification of legal interpretation methods from the perspective of relation between the method of law and legal interpretation method, points that the study on tax treaties' interpretation method is a research on legal interpretation methods in essence, puts forward a view point that the term "interpretation methods" and the term "the rules or guidelines for interpretation" can be exchanged mutually. Secondly, discusses the value orientation of the application of general tax treaties' interpretation methods, introduces the legal basis and the meaning of general interpretation methods advanced by "Vienna Convention on the Law of Treaties", systematically analyses the application of general interpretation methods in tax treaties' interpretation and at last takes US. And Germany as examples to clarify the influence of general interpretation methods on interpretation practice of tax treaties. Thirdly, introduces the legal basis and the meaning of the special interpretation methods clarified by OECD model and its Commentary according to the analysis of tax treaties' application, then deeply discusses the application of special interpretation methods in tax treaties' interpretation, emphasizes the relationship between the special method and general method, and analyses the special interpretation method's influence on tax treaties' interpretation practice with regard to the case PANAMSAT V. Beijing State Tax Bureau. At last, presents the general status quo of China's tax treaties' interpretation methods, and proposes the legal way and orientation to renovate the tax treaties' interpretation methods of China.