Volume 44 (2016) / Issue 6/7

Félix Daniel Martínez Laguna, 'Institutional Hybrid Financial Instruments and Double Non-taxation under Domestic Rules and Tax Treaty Law: The Example of Spain' (2016) 44 Intertax, Issue 6/7, pp. 447–462


Attention has been paid to double non-taxation resulting from contractual hybrid financial instruments, which are instruments that share debt and equity features in their very design. This article focuses on a specific Institutional Hybrid Financial Instrument instead. Institutional Hybrid Financial Instruments are equity instruments that could equally lead to conflicts of qualification and double non-taxation considering certain level of legal deductibility from a tax perspective according to a tax policy decision. The analysis deals with the application of the Spanish exemption method to Brazilian Juros sobre o Capital Próprio from a domestic law and tax treaty perspective. Moreover, the implementation of linking rules and its implications regarding hybrid financial instruments are also under consideration.

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ISSN: 0165-2826
ID: TAXI2016037