DT-05-2026: The Challenge of the Under-Taxed Benefits Rule (UTPR) in the Context of Double Taxation Agreements
This Working Paper analyzes the main legal challenges posed by the application of the Under-Taxed Profits Rule (UTPR) within the framework of double taxation treaties, examining the various doctrinal positions regarding its compatibility with these international instruments. The study argues that, while the UTPR can be defended as a tool of global tax policy, its implementation without an express treaty amendment raises significant questions regarding legality, tax sovereignty, and legal certainty.