handbook-tb

Taxation of income from servicesearns income from services attributable to a PE in the source country,the income is taxable on a net basis in accordance with the samerules applicable to residents; otherwise, it is subject to a gross withholdingtax. In some countries, any income derived by non-residentsfrom those countries is subject to tax without any minimum thresholdrequirement except as provided pursuant to an applicable tax treaty. 28There is considerable variation in the rules used by developingcountries to determine the geographical source of income fromservices. Some countries have detailed statutory rules, while othercountries have only judicial or administrative rules that are vague anduncertain. All countries treat income from services that are physicallyperformed in the country as domestic source income. However, severalcountries also subject income from services derived by a non-residentto domestic tax where the services are performed outside the country,in the following circumstances:international, supra note 7, at 231 – 2 and 238; Lenka Fialkova, “Czech Republic,”in International Fiscal Association, “Enterprise Services,” in Cahiers dedroit fiscal international, supra note 7, at 254 – 55; Saurav Bhattacharya andDhaval Sanghavi, “India,” in International Fiscal Association, “EnterpriseServices,” in Cahiers de droit fiscal international, supra note 7, at 353; MarcialGarcia Schreck, “Peru,” in International Fiscal Association, “EnterpriseServices,” in Cahiers de droit fiscal international, supra note 7, at 547; TracyGutuza, “South Africa,” in International Fiscal Association, “Enterprise Services,”in Cahiers de droit fiscal international, supra note 7, at 601; Jose M.Calderón, “Spain,” in International Fiscal Association, “Enterprise Services,”in Cahiers de droit fiscal international, supra note 7, at 628; Luis Aisenbergand Alejandro Horjales, “Uruguay,” in International Fiscal Association,“Enterprise Services,” in Cahiers de droit fiscal international, supra note 7,at 735 and 750; and Rodrigo Castillo Cottin and Ronald Evans Márquez,“Venezuela,” in International Fiscal Association, “Enterprise Services,” inCahiers de droit fiscal international, supra note 7, at 748 and 751.28See, for example, Sergio André Rocha, “Brazil,” in International FiscalAssociation, “Enterprise Services,” in Cahiers de droit fiscal international,supra note 7, at 156 – 57; Tracy Gutuza, “South Africa,” in International FiscalAssociation, “Enterprise Services,” in Cahiers de droit fiscal international,supra note 7, at 595; Shivaji Felix, “Sri Lanka,” in International Fiscal Association,“Enterprise Services,” in Cahiers de droit fiscal international, supranote 7, at 647.59