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Proposal to clarify 6.1.3 of the ITRs (fiscal taxes)
Article 6 of the ITRs contains the following provision:
6.1.3 Where, in accordance with the national law of a country, a fiscal tax is levied on collection charges for international telecommunication services, this tax shall normally be collected only in respect of international services billed to customers in that country, unless other arrangements are made to meet special circumstances.
This has given rise to some confusion and uncertainty regarding its application. It is proposed that the matter be clarified by replacing the current text with the following:
6.1.3 Countries are free to levy fiscal taxes on international telecommunications services in accordance with their national laws, but international double taxation must be avoided.