Non-discrimination and trade in services: should tax treaties play a broader role in the global trade in Services?

The subject of this study is “Tax Discrimination and the Global Trade in Services: The Case of Non-Resident Service Providers”. This study examines the current non-discrimination obligations in tax and trade agreements and the impact these non-discrimination obligations have on non-resident service providers. 2. General Questions This study seeks answers to three questions: 1. What non-discrimination obligations apply to a non-resident service provider under tax and trade agreements? 2. Do the current non-discrimination obligations in tax and trade agreements adequately address the potential for the discriminatory use of tax measures in the cross border trade in services? 3. Should the Organization for Economic Cooperation and Development (OECD) and the United Nations (UN) make changes to the non-discrimination obligations in the OECD and UN Model Tax Treaties to respond to the growing global trade in services? If so, what changes should they make? The conclusion reached is that current tax and trade agreements provide insufficient protection against discrimination. The study recommends modification of the Model Tax Treaties to provide non-resident service providers with a more appropriate level of protection against discriminatory tax measures.