Students, teachers and professors – Article 20 of the OECD and UN Models: An Overview of the Portuguese Tax Treaty Network

Educational, teaching and research development activities play an important role in cross-border exchange of knowledge thus being encouraged to take place within the current
globalization context.
Questions regarding the tax treatment of students and teachers who temporarily move to another state in order to pursuit their studies or teaching and research activity often arise,
and states usually include in their treaties a provision dealing with taxation of students and/or teachers following the OECD and UN Models.
Article 20 of the OECD and UN Models provide a legal framework aimed at encouraging cross-border exchange of knowledge by granting benefits in form of exemptions, reliefs or
reductions on certain qualifying payments derived by students and teachers.
Notwithstanding the benefits granted, for such payments to qualify for an exemption, certain conditions and thresholds must be respected and several restrictions may be imposed,
namely on the duration of the exemption or the types of payments covered and its source.
Portuguese treaty policy in respect of taxation of students and teachers is drafted in line with the OECD and UN Models. Nonetheless, there are several treaties providing a different
legal framework from the one established in the OECD and UN Model.

Keywords: Taxation of students, Taxation of teachers, OECD Model, UN Model, Article 20, cross-border exchange of knowledge, exemptions, restrictions, Portuguese treaty policy.