Limitations of benefits
1 definition found for this term.
Definitions are presented in the order source books were published (most recent first).
Income Tax Law, 2/e$75.00 – $120.00
Treaty benefits are generally available only to residents of a contracting state, which, in the case of corporations, includes corporations incorporated in the contracting state. Hence, corporations can engage in “treaty-shopping” by incorporating in a convenient state merely for the purpose of deriving treaty benefits. A limitation on benefits article in a treaty generally limits the ability of third-country residents to shop for a favourable treaty.