- The ICC report assesses the economic impact of the new UN Model Article 12AA on cross-border services taxation.
- Article 12AA strengthens source-country taxing rights but may now affect developing countries as both service providers and recipients.
- Analysis predicts that widespread adoption of Article 12AA would reduce developing economies’ exports and imports of technical and professional services by about 4.2% and 4.1%, respectively.
- The article could disproportionately reduce South–South services trade and have broader negative effects on trade and investment.
- The report recommends that policy discussions consider broader economic impacts, not just technical tax issues.
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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