Almanac of law. Issue 15 (2024), pages 120–125.

DOI: 10.33663/2524-017X-2024-15-120-125

Timchenko L. D., Kononenko V. P.
Legal principles of interpretation of international conventions on avoidance of double taxation

The legal principles of interpretation determine the basic principles by which the content and means of application of legal norms are determined. They are defined as general principles and methods used in the interpretation of legal acts to determine their true meaning and apply them to specific situations. The article examines the problems of interpretation of the conventions of Ukraine on the avoidance of double taxation, analyzes the legal basis of their interpretation. In particular, the emphasis is placed on the key aspects of the process of interpretation of such conventions in order to ensure their effectiveness and proper implementation. Analysis of legal grounds related to the issue of interpretation of international treaties is important for understanding and improving the regulatory environment and rule-making activities in the field of taxation. The analysis was made in the context of the national legislation and taking into account international experience. It was concluded that the interpretation of international conventions on the avoidance of double taxation requires a complex approach. This approach should take into account international norms and national legislation of each of the parties to the contract. When interpreting the texts of conventions, it is important to take into account not only the letter of the law, but also its spirit, the will of the parties, the historical context of the conclusion and international practice. Issues of interpretation of terms and concepts in international conventions on the avoidance of double taxation require careful analysis. Such an analysis is made taking into account the meaning of such treaties in the context of the tax system of each participating state. The application of conventions on the avoidance of double taxation contributes to the creation of a favorable environment for international business, contributes to the economic growth and development of states. International double taxation agreements can have other important benefits. Among such advantages are the reduction of administrative and legal costs for enterprises, the stimulation of international trade and the promotion of economic relations between states. Thus, while the agreements themselves may not have a significant impact on investment flows, they are important in creating a favorable business environment and reducing tax risks.

Key words: European integration, investments, conventions on avoidance of double taxation, model norms, tax policy, interpretation, pacta sunt servanda.

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Leonid Dmytrovych Tymchenko,
Chief Researcher of the Department of International Tax Competition
of the Research Institute of Financial Policy
of the State Tax University,
Doctor of Law, Professor,
Honored Lawyer of Ukraine
ORCID: 0000-0001-8897-0308
Valeriy Petrovych Kononenko,
Professor of the Department of International Law
and Law of the European Union
of the Educational and Scientific Institute of Law
of the State Tax University,
Doctor of Law
ORCID: 0000-0002-6461-7072