The recently amended tax treaty with New Zealand generally stipulates the place of effective management as a tie-breaker for determining the residence of dual resident entities. In cases of doubt, the authorities shall endeavour to determine the place of effective management by mutual agreement. This provision can be seen as a compromise between the old and new tie-breakers in the OECD Model Convention and raises questions regarding the scope of the mutual agreement procedure and legal protection, among other things. Such a rule might find its way into other Austrian treaties in the future. A careful analysis of this provision is therefore necessary.
