"183 Day Rule" Legal Issues

As an important component of international taxation relation, International Taxation Agreement has lasted a history of one hundred of years. With the rapid development of economic globalization, International mobility will become frequent and transnational employment also increase. How to build, develop and improve the coordination on income tax rules of the transnational employment income have become an important topic of double taxation agreements. As an exception of income tax rules on transnational employment, the application of 183 day rule has triggered some tax benefit disputes between residents of the host country and services fulfilling country.This paper chooses 183 day rule as a topic of study which is based on the analysis of provisions for income of non-independent service in two international taxation agreements, i.e. The template of Organization for Economic Co-operation and Development (OECD Model) and the Template of United Nations (UN Model). We make an in-depth discussion on some legal issues involved in 183 day rule and on this basis attempt to make some reasonable or beneficial proposals to improve our legislation on 183 day rule of the income from non-independent services. The thesis consists of four chapters excluding the introduction and elaborate 183 day rule in detail. The main contains as follows:Chapter one describes and analysis particularly the main contents and tax levying rule which is triggered by the income of both transnational independent and non- independent services in detail. Chapter two discuss the main concepts, contents, characteristics and defects of 183 day rule based on the income from transnational non-independent service.Chapter three focuses on the legal analysis of identifying the"employer", income from transnational employment and the burden of the Permanent Establishment etc.Chapter four introduces some legislation of the"183 day rule"and also provides some suggestions concerning with Chinese legislation of the income from transnational employment service.