31. Agreement for avoidance of
double taxation and prevention of fiscal evasion with
Whereas the
Convention stated in the Schedule below, between the Government of the Republic
of India and the Government of the Republic of Namibia for the avoidance of
double taxation and the prevention of fiscal evasion with respect to taxes on
income and capital gains has entered into force on 22nd January, 1999 on the
notification by both the Contracting States to each other of the completion of
the procedures as required by article 29 of the said Convention;
Now,
therefore, in exercise of the powers conferred by section 90 of the Income-tax
Act, 1961 (43 of 1961), the Central Government hereby directs that all the
provisions of the Convention stated in the Schedule shall be given effect to in
the Union of
Notification
: No. GSR 196(E), dated 8-3-1999.
Annexure
CONVENTION BETWEEN THE GOVERNMENT OF THE
REPUBLIC OF INDIA AND THE GOVERNMENT OF THE REPUBLIC OF NAMIBIA FOR THE
AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT
TO TAXES ON INCOME AND CAPITAL GAINS
The Government
of the Republic of India and the Government of the Republic of Namibia desiring
to conclude a Convention for the avoidance of double taxation and the
prevention of fiscal evasion with respect to taxes on income and capital gains,
have agreed as follows :
Article 1 : Personal scope - This Convention shall apply to persons who are
residents of one or both of the Contracting States.
Article 2 : Taxes covered - 1. The taxes to which this Convention
shall apply are :
(a) in
(i) the income-tax;
(ii) the non-resident
shareholders’ tax; and
(iii) the petroleum
income-tax;
(hereinafter
referred to as “Namibian tax”);
(b) in
the
income-tax (including any surcharge thereon)
(hereinafter
referred to as “Indian tax”).
2. The Convention shall apply also to any identical
or substantially similar taxes which are imposed after the date of signature of
the Convention in addition to, or in place of, the existing taxes referred to
in paragraph 1. The competent authorities of the Contracting States shall
notify each other of any substantial changes which have been made in their
respective taxation laws, and if it seems desirable to amend any Article of
this Convention without affecting the general principles thereof, the necessary
amendments may be made by mutual consent.
Article 3 : General definitions - 1. For the purposes of this
Convention, unless the context otherwise requires :
(a) the term “Namibia” means the Republic of Namibia and when used in a
geographical sense, includes the territorial sea as well as the exclusive
economic zone and the continental shelf, over which Namibia exercises sovereign
rights in accordance with its internal law and subject to international law,
concerning the exploration and exploitation of the natural resources of the
sea-bed and its sub-soil and the superjacent waters;
(b) the term “India” means the territory of India and includes the
territorial sea and airspace above it, as well as any other maritime zone in
which India has sovereign rights, other rights and jurisdiction, according to
the Indian law and in accordance with international law, including the UN
Convention on the Law of the Sea, 1982;
(c) the terms “a
(d) the term “person” includes an individual, a company, a body of
persons and any other entity which is treated as a taxable unit under the
taxation laws in force in the respective Contracting States;
(e) the term “company” means any body
corporate or any entity which is treated as a body corporate for tax purposes;
(f) the terms “enterprise of a Contracting State” and “enterprise of
the other Contracting State” mean respectively an enterprise carried on by a
resident of a Contracting State and an enterprise carried on by a resident of
the other Contracting State;
(g) the term “international traffic” means any
transport by ship or aircraft operated by an enterprise which has its place of
effective management in a
(h) the term “national” means :
(i) any individual
possessing the citizenship of a
(ii) any legal person,
partnership and association deriving its status as such from the law in force
in a
(i) the term “competent
authority” means :
(i) in the case of Namibia, the Permanent Security
in the Ministry of Finance who is the Chief Executive Officer and Administrator
of Namibian tax laws or his or her authorised representative;
(ii) in the case of India, the Central Government
in the Ministry of Finance (Department of Revenue) or its authorised
representative;
(j) the term “tax” means Indian tax or Namibian tax, as the context
requires, but shall not include any interest or any amount which is payable in
respect of any default or omission in relation to the taxes to which this
Convention applies or which represents a penalty imposed relating to those
taxes.
2. As regards the application of the Convention
by a Contracting State, any term not defined therein shall, unless the context
otherwise requires, have the meaning which it has under the law of that State
concerning the taxes to which this Convention applies.
Article 4 : Resident - 1. For the purposes of this Convention, the
term “resident of a Contracting State” means any individual who is ordinarily
resident, or has his or her domicile in that State and any company or other
body of persons which has its place of effective management or incorporation in
that State.
2. Where by reason of the provisions of
paragraph 1, an individual is a resident of both Contracting States, then his
or her status shall be determined as follows :
(a) he or she shall be deemed to be a resident of the State in which he
or she has a permanent home available to him or her, if he or she has a
permanent home available to him or her in both States, he or she shall be
deemed to be a resident of the State with which his or her personal and
economic relations are closer (centre of vital interests);
(b) if the State in which he or she has his or her centre of vital
interests cannot be determined, or if he or she has not a permanent home
available to him or her in either State, he or she shall be deemed to be a
resident of the State in which he or she has a habitual abode;
(c) if he or she has a habitual abode in both
States or in neither of them, he or she shall be deemed to be a resident of the
State of which he or she is a national;
(d) if he or she is a national of both States
or of neither of them, the competent authorities of the Contracting States
shall settle the question by mutual agreement.
3. Where by reason of the provisions of
paragraph 1, a person other than an individual is a resident of both
Contracting States, then it shall be deemed to be a
resident of the State in which its place of effective management is situated.
In case of doubt the competent authorities of the Contracting States shall
settle the question by mutual agreement.
Article 5 : Permanent establishment - 1. For the purposes of this
Convention, the term “permanent establishment” means a fixed place of business
through which the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes especially :
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or
any other place of extraction of natural resources;
(g) an installation or structure used for the
exploration of natural resources, provided that the installation or structure
continues for a period of not less than six months;
(h) a warehouse, in relation to a person
providing storage facilities for others; and
(i) in the case of
3. The term “permanent establishment” likewise encompasses :
(a) a building site, a construction, assembly or installation project
or supervisory activities in connection therewith, but only where such site,
project or activity continues for a period of more than six months; or
(b) the furnishing of services, excluding
those referred to in article 14, by an enterprise of a
4. Notwithstanding the preceding provisions of
this article, the term “permanent establishment” shall be deemed not to include :
(a) the use of facilities solely for the
purpose of storage or display or the occasional delivery of goods or
merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or
merchandise belonging to the enterprise solely for the purpose of storage,
display or occasional delivery;
(c) the maintenance of a stock of goods or
merchandise belonging to the enterprise solely for the purpose of processing by
another enterprise;
(d) the maintenance of a fixed place of
business solely for the purpose of purchasing goods or merchandise or of
collecting information, for the enterprise;
(e) the maintenance of a fixed place of
business solely for the purpose of carrying on, for the enterprise, any other
activity of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of
business solely for any combination of activities mentioned in sub-paragraphs (a)
to (e), provided that the overall activity of the fixed place of
business resulting from this combination is of a preparatory or auxiliary
character.
5. Notwithstanding the provisions of paragraphs
1, 2 and 3, where a person - other than an agent of an independent status to
whom paragraph 6 applies - is acting in a Contracting State on behalf of an
enterprise of the other Contracting State, that enterprise shall be deemed to
have a permanent establishment in the first-mentioned Contracting State in
respect of any activities which that person undertakes for the enterprise, if
such person—
(a) has and habitually exercises in that State an authority to conclude
contracts in the name of the enterprise, unless the activities of such person
are limited to those mentioned in paragraph 4 which, if exercised through a
fixed place of business, would not make this fixed place of business a
permanent establishment under the provisions of that paragraph; or
(b) has no such authority but nevertheless
maintains habitually in the first-mentioned
6. An enterprise of a
7. The fact that a company which is a resident
of a Contracting State controls or is controlled by a company which is a resident
of the other Contracting State, or which carries on business in that other
State (whether through a permanent establishment or otherwise) shall not of
itself constitute either company a permanent establishment of the other.
Article 6 : Income from immovable property - 1. Income derived by a
resident of a
2. The term “immovable property” shall have the
meaning which it has under the law of the
3. The provisions of paragraph 1 shall apply to
income derived from the direct use, letting, or use in any other form of
immovable property.
4. The provisions of paragraphs 1 and 3 shall
also apply to the income from immovable property of an enterprise and to income
from immovable property used for the performance of independent personal
services.
5. Where the ownership of shares or other rights
in a company or legal person entitles the owner to the enjoyment of immovable
property situated in a Contracting State and held by that company or legal
person, income derived by the owner from the direct use, letting or use in any
other form of his or her right of enjoyment may be taxed in that State. The
provisions of this paragraph shall apply notwithstanding the provisions of
article 7 or 15.
Article 7 : Business profits - 1. The profits of an enterprise of a
2. Subject to the provisions of paragraph 3,
where an enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated therein, there
shall in each Contracting State be attributed to that permanent establishment
the profits which it might be expected to make if it were a distinct and
separate enterprise engaged in the same or similar activities under the same or
similar conditions and dealing wholly independently with the enterprise of
which it is a permanent establishment.
3. In the determination of the profits of a
permanent establishment, there shall be allowed as deductions expenses which
are incurred for the purposes of the business of the permanent establishment,
including executive and general administrative expenses so incurred, whether in
the State in which the permanent establishment is situated or elsewhere, in
accordance with the provisions of and subject to the limitations of the laws of
that State. However, no such deduction shall be allowed in respect of amounts,
if any, paid (otherwise than towards reimbursement of actual expenses) by the
permanent establishment to the head office of the enterprise or any of its
other offices, by way of royalties, fees or other similar payments in return
for the use of patents or other rights, or by way of commission, for specific
services performed or for management, or, except in the case of a banking
enterprise, by way of interest on moneys lent to the permanent establishment.
Likewise, no account shall be taken, in the determination of the profits of a
permanent establishment, for amounts charged (otherwise than towards
reimbursement of actual expenses), by the permanent establishment to the head
office of the enterprise or any of its other offices, by way of royalties, fees
or other similar payments in return for the use of patents or other rights, or
by way of commission for specific services performed or for management, or,
except in the case of a banking enterprise by way of interest on moneys lent to
the head office of the enterprise or any of its other offices.
4. Insofar as it has been customary in a
Contracting State to determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total profits of the
enterprise to its various parts, nothing in paragraph 2 shall preclude that
Contracting State from determining the profits to be taxed by such an
apportionment as may be customary. The method of apportionment adopted shall,
however, be such that the result shall be in accordance with the principles
contained in this Article.
5. No profits shall be attributed to a permanent
establishment by reason of the mere purchase by that permanent establishment of
goods or merchandise for the enterprise.
6. For the purposes of the preceding paragraphs,
the profits to be attributed to the permanent establishment shall be determined
by the same method year by year unless there is good reason to the contrary.
7. Where profits include items of income which
are dealt with separately in other Articles of this Convention, then the
provisions of those Articles shall not be affected by the provisions of this
Article.
Article 8 : Shipping and air transport - 1. Profits from the
operation or charter of ships or aircraft in international traffic and the
rental of containers and related equipment which is incidental to the operation
of ships or aircraft in international traffic shall be taxable only in the
2. If the place of effective management of a
shipping enterprise is aboard a ship or boat, then it shall be deemed to be
situated in the Contracting State in which the home harbour of the ship or boat
is situated, or, if there is no such home harbour, in the Contracting State of
which the operator of the ship or boat is a resident.
3. For the purposes of this Article, interest on
funds connected with the operation of ships or aircraft in international
traffic shall be regarded as profits derived from the operation of such ships
or aircraft and the provisions of article 11 shall not apply in relation to
such interest.
4. The provisions of paragraph 1 shall also
apply to profits from the participation in a pool, a joint business or an
international operating agency.
Article 9 : Associated enterprises - 1. Where :
(a) an enterprise of a
(b) the same persons participate directly or
indirectly in the management, control or capital of an enterprise of a
and in either case
conditions are made or imposed between the two enterprises in their commercial
or financial relations which differ from those which would be made between
independent enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason of those
conditions, have not so accrued, may be included in the profits of that
enterprise and taxed accordingly.
2. Where a Contracting State includes in the
profits of an enterprise of that State - and taxes accordingly - profits on
which an enterprise of the other Contracting State has been charged to tax in
that other State and the profits so included are profits which would have
accrued to the enterprise of the first-mentioned State if the conditions made
between the two enterprises had been those which would have been made between
independent enterprises, then that other State shall make an appropriate
adjustment to the amount of the tax charged therein on those profits. In
determining such adjustment, due regard shall be had to the other provisions of
this Convention and the competent authorities of the Contracting States shall
if necessary consult each other.
Article 10 : Dividends - 1. Dividends paid by a company which is a
resident of a
2. However, such dividends may also be taxed in
the
This paragraph
shall not affect the taxation of the company in respect of the profits out of
which the dividends are paid.
3. The term “dividends” as used in this Article
means income from shares of all kinds or other rights, not being debt-claims,
participating in profits, as well as income from other corporate rights which
is subjected to the same taxation treatment as income from shares by the laws
of the State of which the company making the distribution is a resident.
4. The provisions of paragraphs 1 and 2 shall
not apply if the beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting State of which
the company paying the dividends is a resident, through a permanent
establishment situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the holding in
respect of which the dividends are paid is effectively connected with such
permanent establishment or fixed base. In such case, the provisions of article
7 or 15, as the case may be, shall apply.
Article 11 : Interest - 1. Interest arising in a
2. However, such interest may also be taxed in
the
3. Interest arising in a
(a) the Government, a political sub-division
or a local authority of the other
(b) such agency or instrumentality of the
Government of the other
4. The term “interest” as used in this article
means income from debt-claims of every kind, whether or not secured by mortgage
and whether or not carrying a right to participate in the debtor’s profits, and
in particular, income from Government securities and income from bonds or
debentures, including premiums and prizes attaching to such securities, bonds
or debentures. Penalty charges for late payment shall not be regarded as
interest for the purpose of this Article.
5. The provisions of paragraphs 1 and 2 shall
not apply if the beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting State in which
the interest arises, through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed base situated
therein, and the debt-claim in respect of which the interest is paid is
effectively connected with such permanent establishment or fixed base. In such
case, the provisions of article 7 or 15, as the case may be, shall apply.
6. Interest shall be deemed to arise in a
7. Where by reason of a special relationship
between the payer and the beneficial owner or between both of them and some
other person, the amount of the interest, having regard to the debt-claim for
which it is paid, exceeds the amount which would have been agreed upon by the
payer and the beneficial owner in the absence of such relationship, the
provisions of this article shall apply only to the last-mentioned amount. In
such case, the excess part of the payments shall remain taxable according to
the laws of each
Article 12 : Royalties - 1. Royalties arising in a
2. However, such royalties may also be taxed in
the
3. The term “royalties” as used in this article
means payments of any kind received as a consideration for the use of, or the
right to use, any copyright of literary, artistic or scientific work including
cinematograph films and films or tapes used for radio or television
broadcasting, any patent, trade mark, design or model, computer programme,
plan, secret formula or process, or for the use of, or the right to use
industrial, commercial or scientific equipment involving a transfer of know-how
or for information concerning industrial, commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not
apply if the beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting State in which
the royalties arise, through a permanent establishment situated therein, or
performs in that other State, independent personal services from a fixed base
situated therein, and the right or property in respect of which the royalties
are paid is effectively connected with such permanent establishment or fixed
base. In such case, the provisions of article 7 or 15, as the case may be,
shall apply.
5. Royalties shall be deemed to arise in a
6. Where by reason of a special relationship
between the payer and the beneficial owner or between both of them and some
other person, the amount of the royalties, having regard to the use, right or
information for which they are paid, exceeds the amount which would have been
agreed upon by the payer and the beneficial owner in the absence of such
relationship, the provisions of this article shall apply only to the
last-mentioned amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each
Article 13 : Capital gains - 1. Gains derived by a resident of a
Contracting State from the alienation of immovable property referred to in
article 6 and situated in the other Contracting State, or from the alienation
of shares in a company the assets of which consist principally of such
property, may also be taxed in that other State.
2. Gains from the alienation of movable property
forming part of the business property of a permanent establishment which an enterprise
of a Contracting State has in the other Contracting State or of movable
property pertaining to a fixed base available to a resident of a Contracting
State in the other Contracting State for the purpose of performing independent
personal services, including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) or of such fixed base, may
also be taxed in that other State.
3. Gains from the alienation of ships or aircraft
operated in international traffic or movable property pertaining to the
operation of such ships or aircraft, shall be taxable only in the
4. Gains from the alienation of shares or similar
rights being shares in a company, the assets of which consist principally of
immovable property situated in a Contracting State, may also be taxed in that
State. Gains from the alienation of an interest in a partnership,
trust or estate, the property of which consists principally of immovable
property situated in a
5. Gains derived by a resident of a Contracting
State from the sale, exchange or other disposition, directly or indirectly, of
shares other than those mentioned in paragraph 4, or similar rights in a
company which is a resident of the other Contracting State may also be taxed in
that other State.
6. Gains from the alienation of any property
other than that referred to hereinabove, shall be taxable only in the
Article 14 : Fees for technical services - 1. Fees for technical
services arising in a
2. However, such fees for technical services may
also be taxed in the
3. The term “fees for technical services” as used
in this article means payments of any kind to any person, other than to an
employee of the person making the payments, in consideration for any services
of a technical, managerial or consultancy nature.
4. The provisions of paragraphs 1 and 2 shall not
apply if the beneficial owner of the fees for technical services, being a resident
of a Contracting State carries on business in the other Contracting State in
which the fees for technical services arise through a permanent establishment
situated therein, or performs in that other State independent personal
services, and the fees for the technical services are effectively connected
with such permanent establishment or such services. In such case, the
provisions of article 7 or 15, as the case may be, shall apply.
5. Fees for technical services shall be deemed to
arise in a
6. Where, by reason of a special relationship
between the payer and the recipient or between both of them and some other
person, the amount of the fees paid for technical services, exceeds for
whatever reason, the amount which would have been agreed upon by the payer and
the beneficial owner in the absence of such relationship, the provisions of
this article shall apply only to the last-mentioned amount. In such case, the
excess part of the payments shall remain taxable according to the law of each
Article 15 : Independent personal services - 1. Income derived by an
individual who is a resident of a Contracting State in respect of professional
services or other activities of an independent character shall be taxable only
in that State. Such income may also be taxed in the other Contracting State if :
(a) the individual has a fixed base regularly available to him or her
in that other State for the purpose of performing his or her activities, but
only so much thereof as is attributable to that fixed base, or
(b) the individual is present in that other State for a period or
periods exceeding in the aggregate 183 days within any period of twelve months,
but only so much thereof as is attributable to services performed in that
State.
2. The term “professional services” includes
especially independent scientific, literary, artistic, educational or teaching
activities as well as the independent activities of medical practitioners,
lawyers, engineers, architects, dentists and accountants.
Article 16 : Dependent personal services - 1. Subject to the
provisions of Articles 17, 19, 20 and 21, salaries, wages and other similar
remuneration derived by a resident of a
2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a
(a) the recipient is present in the other
State for a period or periods not exceeding in the aggregate 183 days within
any period of twelve months;
(b) the remuneration is paid by, or on behalf
of, an employer who is not a resident of the other State; and
(c) the remuneration is not borne by a
permanent establishment or a fixed base which the employer has in the other
State.
3. Notwithstanding the preceding provisions of this
article, remuneration derived by a resident of a
Article 17 : Directors’ fees - Directors’ fees and other similar payments
derived by a resident of a
Article 18 : Artistes
and sportspersons - 1. Notwithstanding the provisions of articles 15
and 16, income derived by a resident of a Contracting State as an artiste, such
as a theatre, motion picture, radio or television artiste, or a musician, or as
a sportsperson, from his or her personal activities as such exercised in the
other Contracting State, may be taxed in that other State.
2. Where income in respect of personal activities
exercised by an artiste or a sportsperson in his or her capacity as such
accrues not to the artiste or sportsperson but to another person, that income
may, notwithstanding the provisions of articles 7, 15 and 16, be taxed in the
Contracting State in which the activities of the artiste or sportsperson are
exercised.
3. Notwithstanding the provisions of paragraphs 1
and 2, income derived by an artiste or sportsperson from his or her personal
activities as such shall be exempt from tax in the Contracting State in which
these activities are exercised if the activities are exercised within the
framework of a visit which is substantially supported by the other Contracting
State, a political sub-division, a local authority or a public institution
thereof.
Article 19 : Pensions and annuities - 1. Subject to the provisions of
paragraph 2 of article 20, pensions and other similar remuneration for past
employment or any annuity arising in a Contracting State and paid to a resident
of the other Contracting State, shall be taxable only in the first-mentioned
State.
2. The term “annuity” means a stated sum payable
periodically at stated times during life or during a specified or ascertainable
period of time under an obligation to make the payments in return for adequate
and full consideration in money or money’s worth.
Article 20 : Government services - 1. (a)
Remuneration, other than a pension, paid by a Contracting State or a political
sub-division or a local authority thereof to an individual in respect of services
rendered to that State or sub-division or authority shall be taxable only in
that State.
(b) However, such remuneration shall be
taxable only in the other Contracting State if the services are rendered in
that other State and the individual is a resident of that State who :
(i) is a national of that
State; or
(ii) did not become a
resident of that State solely for the purpose of rendering the services.
2. Any pension paid by, or out of funds created
by, a Contracting State or a political sub-division or a local authority
thereof to an individual in respect of services rendered to that State or
sub-division or authority shall be taxable only in that State.
3. The provisions of articles 16, 17 and 19 shall
apply to remuneration and pensions in respect of services rendered in
connection with a business carried on by a
Article 21 : Professors, teachers and students - 1. Remuneration
received for education or scientific research by an individual who is or was
immediately before visiting a
2. (a) Payments which a student or a business apprentice who is or
was immediately before visiting a Contracting State a resident of the other
Contracting State and who is present in the first-mentioned State solely for
the purpose of his education or training receives for the purpose of his maintenance,
education or training shall not be taxed in that State, provided that such
payments arise from sources outside that State.
(b) Payments which a student or
business apprentice receives as remuneration from employment in the
first-mentioned State shall be exempted from tax in the first-mentioned State.
This benefit shall extend only for such period of time as may be reasonable or
customarily required to complete the education or training undertaken, but in
no event shall any individual have the benefit of this provision for more than
three consecutive years from the date of his or her first arrival in the
first-mentioned
Article 22 : Other income - Items of income not dealt within the foregoing
articles of this Convention and derived from sources within a
Article 23 : Elimination of double taxation - 1. In
Where a resident
of
2. In
Where a
resident of India derives income or capital gains from Namibia, which, in
accordance with the provisions of this Convention may be taxed in Namibia, then
India shall allow as a deduction from the tax on the income of that resident an
amount equal to the tax on income or capital gains paid in Namibia, whether
directly or by deduction.
Article 24 : Limitation of benefits - 1. If, in accordance with the
provisions of this Convention, the right of
2. If, in accordance with the provisions of this
Convention, the right of Namibia to tax income from Namibian sources or deemed
to be from Namibian sources is limited and if such income is in accordance with
the Indian tax laws not taxed in India, Namibia may tax such income as if this
Convention did not exist.
Article 25 : Non-discrimination - 1. Nationals of a
2. The taxation on a permanent establishment
which an enterprise of a
3. Except where the provisions of paragraph 1 of
article 9, paragraph 7 of article 11, paragraph 6 of article 12, or paragraph 6
of article 14 apply, interest, royalties, fees for technical services and other
disbursements paid by an enterprise of a Contracting State to a resident of the
other Contracting State shall, for the purpose of determining the taxable
profits of such enterprise, be deductible under the same conditions as if they
had been paid to a resident of the first-mentioned State.
4. Enterprises of a Contracting State, the
capital of which is wholly or partly owned or controlled, directly or indirectly,
by one or more residents of the other Contracting State, shall not be subjected
in the first-mentioned State to any taxation or any requirement connected
therewith which is more burdensome than the taxation and connected requirements
to which other similar enterprises of the first-mentioned State are or may be
subjected.
5. Nothing in this article shall be construed as
obliging a
Article 26 : Mutual agreement procedure - 1. Where a person considers
that the actions of one or both of the Contracting States result or will result
for him or her in taxation not in accordance with the provisions of this
Convention, he or she may, irrespective of the remedies provided by the
domestic laws of those States, present his or her case to the competent
authority of the Contracting State of which he or she is a resident or, if his
or her case comes under paragraph 1 of article 25, to that of the Contracting
State of which he or she is a national. The case must be presented within three
years from the first notification of the action resulting in taxation not in
accordance with the provisions of the Convention.
2. The competent authority shall endeavour, if
the objection appears to it to be justified and if it is not itself able to
arrive at a satisfactory solution, to resolve the case by mutual agreement with
the competent authority of the other
3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the Convention. They
may also consult together for the elimination of double taxation in cases not
provided for in the Convention.
4. The competent authorities of the Contracting
States may communicate with each other directly for the purpose of reaching an
agreement in the sense of the preceding paragraphs.
Article 27 : Exchange of information - 1. The competent authorities of
the Contracting States shall exchange such information, including documents, as
are necessary for carrying out the provisions of this Convention or of the
domestic laws of the Contracting States concerning taxes covered by the
Convention, insofar as the taxation thereunder is not contrary to the
Convention, in particular for the prevention of fraud or evasion of such taxes.
The exchange of information is not restricted by article 1. Any information
received by a Contracting State shall be treated as secret in the same manner
as information obtained under the domestic laws of that State and shall be
disclosed only to persons or authorities (including Courts and administrative
bodies) involved in the assessment or collection of, the enforcement or
prosecution in respect of, or the determination of appeals in relation to, the
taxes covered by the Convention. Such persons or authorities shall use the
information only for such purposes. They may disclose the information in public
Court proceedings or in judicial decisions.
2. In no case, shall the provisions of paragraph
1 be construed so as to impose on a
(a) to carry out administrative measures at
variance with the laws and administrative practice of that or of the other
(b) to supply information which is not
obtainable under the laws or in the normal course of the administration of that
or of the other
(c) to supply information which would disclose any trade, business,
industrial, commercial or professional secret or trade process, or information,
the disclosure of which would be contrary to public policy.
Article 28 : Diplomatic agents and consular officers - Nothing in this
Convention shall affect any fiscal privileges accorded to members of diplomatic
or permanent missions or consular posts under the general rules for
international law or under the provisions of special agreements.
Article 29 : Entry into force - Each of the Contracting States shall notify
to the other through diplomatic channels the completion of the procedures
required by its law for the bringing into force of this Convention. This
Convention shall enter into force on the date of the later of these
notifications and shall thereupon have effect :
(a) in
(i) in respect of taxes withheld at source, for
amounts paid or credited on or after the first day of March in the calendar
year next following that in which the Convention enters into force; and
(ii) in respect of other taxes, for any year of
assessment beginning on or after the first day of March in the calendar year
next following that in which the Convention enters into force;
(b) in
(i) in respect of taxes withheld at source, for
amounts paid or credited on or after the first day of April in the calendar
year next following that in which the Convention enters into force; and
(ii) in respect of other
taxes, for any fiscal year beginning on or after the first day of April in the
calendar year next following that in which the Convention enters into force.
Article 30 : Termination - 1. This Convention shall remain in force
until terminated by one of the Contracting States. Either
(a) in
(i) in respect of taxes withheld at source, for
amounts paid or credited on or after the first day of March in the calendar
year next following that in which the notice is given; and
(ii) in respect of other taxes, for any year of
assessment beginning on or after the first day of March in the calendar year
next following that in which the notice is given;
(b) in
(i) in respect of taxes withheld at source, for
amounts paid or credited on or after the first day of April in the calendar
year next following that in which the notice is given; and
(ii) in respect of other
taxes, for any fiscal year beginning on or after the first day of April in the
calendar year next following that in which the notice is given.
In witness
whereof the undersigned, duly authorised thereto, have signed this Convention.
Done in duplicate at