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Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management
The residence article in the OECD Model Tax Convention provides a `tie-breaker' rule for determining residence where an entity is resident in two different countries in order to avert double taxation. The residence of such a “dual resident” entity is allocated to the country in which its “place of e...
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| Format: | Thesis |
| Language: | English English |
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Centre for Law and Society
2026
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| _version_ | 1867613190311903232 |
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| access_status_str | Open Access |
| author | Majachani, Alex Farai |
| author2 | Gutuza, Tracy |
| author_browse | Gutuza, Tracy Majachani, Alex Farai |
| author_facet | Gutuza, Tracy Majachani, Alex Farai |
| author_sort | Majachani, Alex Farai |
| collection | Thesis |
| description | The residence article in the OECD Model Tax Convention provides a `tie-breaker' rule for determining residence where an entity is resident in two different countries in order to avert double taxation. The residence of such a “dual resident” entity is allocated to the country in which its “place of effective management” is situated. One has to determine the location of an entity's PoEM in order to allocate taxing rights to one of the States so as to avert double taxation. According to the OECD, the PoEM is one where the key management and commercial decisions of an entity's business are made. This paper analyses the meaning and effectiveness of the concept ‘PoEM' as a tie-breaker rule. It is pointed out that the concept is under serious subversion by means of; inter alia, the exponential growth in e-commerce and the evolution of the communications technology. These developments have seen changes in the way business is run, including the conduct of board meetings. It is further highlighted that the concept suffers a lack of international agreement on its meaning and application. This article thus highlights these problems, and suggests recommendations to bolster the usefulness of the tie-breaker rule from a South African perspective. |
| format | Thesis |
| id | oai:open.uct.ac.za:11427/43024 |
| institution | University of Cape Town (South Africa) |
| language | English eng |
| last_indexed | 2026-06-10T12:32:12.136Z |
| license_str | Not specified — see source repository |
| provenance_str_mv | Harvested via OAI-PMH from UCTD — University of Cape Town Open Access Repository |
| publishDate | 2026 |
| publishDateRange | 2026 |
| publishDateSort | 2026 |
| publisher | Centre for Law and Society |
| publisherStr | Centre for Law and Society |
| record_format | dspace |
| source_str | UCTD — University of Cape Town Open Access Repository |
| spelling | oai:open.uct.ac.za:11427/43024 Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management Majachani, Alex Farai Gutuza, Tracy Davis, DM South Africa tax The residence article in the OECD Model Tax Convention provides a `tie-breaker' rule for determining residence where an entity is resident in two different countries in order to avert double taxation. The residence of such a “dual resident” entity is allocated to the country in which its “place of effective management” is situated. One has to determine the location of an entity's PoEM in order to allocate taxing rights to one of the States so as to avert double taxation. According to the OECD, the PoEM is one where the key management and commercial decisions of an entity's business are made. This paper analyses the meaning and effectiveness of the concept ‘PoEM' as a tie-breaker rule. It is pointed out that the concept is under serious subversion by means of; inter alia, the exponential growth in e-commerce and the evolution of the communications technology. These developments have seen changes in the way business is run, including the conduct of board meetings. It is further highlighted that the concept suffers a lack of international agreement on its meaning and application. This article thus highlights these problems, and suggests recommendations to bolster the usefulness of the tie-breaker rule from a South African perspective. 2026-03-19T11:43:36Z 2026-03-19T11:43:36Z 2010 2026-03-19T07:05:03Z Thesis / Dissertation Masters LLM http://hdl.handle.net/11427/43024 en eng application/pdf Centre for Law and Society Faculty of Law University of Cape Town |
| spellingShingle | South Africa tax Majachani, Alex Farai Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| thesis_degree_str | Master's |
| title | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| title_full | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| title_fullStr | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| title_full_unstemmed | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| title_short | Residence of an entity for tax purposes – South Africa: a review of the concept ‘place of effective management |
| title_sort | residence of an entity for tax purposes south africa a review of the concept place of effective management |
| topic | South Africa tax |
| url | http://hdl.handle.net/11427/43024 |
| work_keys_str_mv | AT majachanialexfarai residenceofanentityfortaxpurposessouthafricaareviewoftheconceptplaceofeffectivemanagement |