"year" used in tax treaty means any part of a year?

Technical topics regarding tax preparation.
#1
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The US-France tax treaty article 20 (https://www.irs.gov/pub/irs-trty/france.pdf) says:

An individual who ... shall be taxable only in the first-mentioned State on his income from ... for a period not exceeding 2 years from the date of his arrival in the other State.

If a French enters the US on 12/01/2021, the two years means the year 2021 and 2022, or from 12/01/2021 to 11/30/2023?

I search everywhere but cannot find an answer, please help.
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#2
Pitch78  
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#3
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The university simply copies the language without further clarification. This IRS document (https://www.irs.gov/pub/irs-utl/china_u ... _3_1_1.pdf) says:

[T]he host state may begin to tax the individual's remuneration for ... starting with the first day of the fourth year.

This is for US-China tax treaty, however since all treaties are built from the same boilerplate, it will help to interpret other treaties. It is still not clear.
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#4
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I agree that the two years means from 12/01/2021 to 11/30/2023 (2 years from the date of arrival).
 

#5
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dellpaul wrote:I agree that the two years means from 12/01/2021 to 11/30/2023 (2 years from the date of arrival).

The technical explanation of the US-China treaty (https://www.irs.gov/pub/irs-trty/chintech.pdf) says:

Thus, for example, a resident of China who visits the United States to conduct research at the National Institute of Health (NIH) for two years, 1986 and 1987, returns to China for a year, and then comes back for another year of research at NIH in 1989 would be exempt from tax on his NIH remuneration for each of the three years. However, if he stayed at NIH in 1990 or returned at a later time the exemption would no longer be available.

It sounds like calendar year, but not very clear. I do not know why 1990 was mentioned. It is also hard to imagine year means different things in different treaties. This is a common and practical issue, it got to have an clarification somewhere.
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#6
Nilodop  
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Sorry, but this is creating a problemm where none exists. It says
for a period not exceeding 2 years from the date of his arrival in the other State.
. It does not say calendar years, it does not say from January 1 of the year of his arrival, it does not say or imply any other reading than the obvious one.

Random examples from the treaty with France:
The provisions concerning other taxes generally will take effect for taxable years or taxable events occurring on or after January 1 of the year following the entry into force.


the assets situated outside of France that such a person owns on the first of January of each of the five years following the calendar year in which he becomes a resident of France shall be excluded from the base of assessment of the above- mentioned wealth tax relating to each of those five years.


If such an individual loses the status of resident of France for a duration of at least three years and again becomes a resident of France, the assets situated outside of France that such a person owns on the first of January of each of the five years following the calender year in which he again becomes a resident of France shall be excluded from the base of assessment of the tax relating to each of those five years.


The case must be presented within three years of the notification of the action resulting in taxation not in accordance with the provisions of this Convention.


Random examples from the technical explanation:

may terminate the Convention at any time after five years from the date on which it enters into force, provided that notice has been given through diplomatic channels at least six months before the end of a calendar year.


whose loss of citizenship had as one of its principal purposes the avoidance of U.S. income tax, for ten years following the loss of citizenship.


Such a former citizen is taxable in accordance with the provisions of section 877 of the Code for ten years following the loss of citizenship.
. (877 says
within the 10-year period immediately preceding the close of the taxable year,


but the combined period of benefits may not exceed five years.


a case must be presented to the competent authorities no later than three years from the notification of the assessment which gives rise to the taxation


Either for the taxable year concerned, or as an average for the preceding four years,
 

#7
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Finally I found a document that touches the issue: https://ors.od.nih.gov/pes/dis/Visiting ... eaties.pdf

they made distinctions between "tax years", "full years", and "years from the date of the arrival". Although NIH is not a tax authority, but they have many visiting scientists, and since they are willing to touch on the issue, they must have done research.

I checked US-France tax treaty (https://www.irs.gov/pub/irs-trty/france.pdf) article 21(1)(c), it says "five taxable periods", so the treaty does use a different expression when it meant "calendar years".

Thanks all who have replied, I think we have reached a consensus.
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