(Un)limited Multilateral Tax Treaties: The Interplay between Multilateralization and Bilateral Flexibility

This article aims to undertake an in-depth analysis of the existing forms of tax treaty multilateralism. Using the notion of comprehensive universal multilateralism as a benchmark, the authors propose a tripartite classification of multilateral tax treaties based on the trajectories of their deviations from this benchmark. An analytical framework is established to provide a structure for systematically examining multilateral treaties in the tax arena, making it easier to navigate this increasingly important yet ever more complex phenomenon. After showing that all existing multilateral tax treaties are limited in regard to their subject matter, their inclusiveness vis-à-vis the signatories, or their function, the article explores these groups of multilateral tax treaties focusing particularly on these limiting features. Within each of these three categories, methods for the facilitation of bilateral flexibility are explored. In their conclusion, the authors draw the readers’ attention to the different margins of manoeuvre ensuring bilateral flexibility of the analysed multilateral tax treaties, focusing especially on their relevance for the success of these treaties.