UAR (
53. Agreement for avoidance of
double taxation with United Arab Republic (Egypt)
Whereas the
annexed Convention between the Government of India and the Government of the
United Arab Republic for the avoidance of double taxation with respect to taxes
on income has been ratified and the instruments of ratification exchanged, as
required by article XXIX of the said Convention ;
Now,
therefore, in exercise of the powers conferred by section 90 of the Income-tax
Act, 1961 (43 of 1961), and section 24A of the Companies (Profits) Surtax Act,
1964 (7 of 1964), the Central Government hereby directs that all the provisions
of the said Convention shall be given effect to in the Union of
Notification: No. GSR 2363, dated 30-9-1969.
Text Of Annexed Convention, Dated 20-2-1969
The Government
of India and the Government of the
Chapter I - Scope Of The Convention
Article I - Personal
scope - This Convention shall apply to persons who are residents of one or
both of the Contracting States.
Article II - Taxes
covered - 1. This Convention shall apply to taxes on income imposed on
behalf of each
2. There shall be regarded as taxes on income
all taxes imposed on total income or on all elements of income including taxes
on gains from the sale, exchange or transfer of movable or immovable property
and taxes on the total amounts of wages or salaries paid by enterprises.
3. The existing taxes to which the Convention
shall apply are, in particular—
(a) In the case of
(1) the income-tax, including super-tax and the surcharge, imposed
under the Income-tax Act, 1961 (43 of 1961), and
(2) the surtax imposed under the Companies (Profits) Surtax Act, 1964
(7 of 1964)
(hereinafter referred to as
“Indian tax”) ;
(b) in the case of the
(1) tax on income derived from immovable property (including the land
tax, the buildings tax and the ghaffir tax),
(2) tax on income from movable capital,
(3) tax on commercial and industrial profits,
(4) tax on wages, salaries, indemnities and pensions [as mentioned in
Book III of Law (14 of 1939)],
(5) tax on profits from liberal professions and all other non-commercial
professions,
(6) general income-tax,
(7) defence tax (imposed on income),
(8) national security tax (imposed on income), and
(9) supplementary taxes imposed as percentage of taxes mentioned above,
(hereinafter referred to as
“
4. The Convention shall also apply to any
identical or substantially similar taxes which are subsequently imposed in
addition to, or in the place of, the existing taxes.
5. At the end of each year, the competent
authorities of the Contracting States shall notify to each other any
significant changes which have been made in their respective taxation laws.
Chapter II - Definitions
Article III - General
definitions - 1. In this Convention, unless the context
otherwise requires,—
(a) the term “
(b) the term “United Arab Republic” means
(c) the terms “a Contracting State” and “the other Contracting State”
mean India or the United Arab Republic as the context requires ;
(d) the term “tax” means Indian tax or
(e) the term “person” includes individuals, companies and all other
entities which are treated as taxable units under the tax laws in force in
either
(f) the term “company” for tax purposes means any entity which is
treated as a company under the Indian tax law or any entity which is treated as
a body corporate under the United Arab Republic tax law ;
(g) 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 ;
(h) the term “competent authority” means in the case of
2. In the application of the provisions of this
Convention by one of the Contracting States any term not otherwise defined
shall, unless the context otherwise requires, have the meaning which it has
under the laws in force in that State relating to the taxes which are the
subject of this Convention.
Article IV - Fiscal
Domicile - 1. For the purposes of this Convention, the term “resident of a
Contracting State” means any person who, under the law of that State, is
resident of that State for the purposes of taxation therein by reason of his
domicile, residence, place of management or any other criterion applied under
the tax laws of that State.
2. Where by reason of the provisions of
paragraph (1) an individual is a resident of both Contracting States,
then his case shall be determined in accordance with the following rules:
(a) He shall be deemed to be a resident of the
(b) If the
(c) If he has an habitual abode in both Contracting States or in
neither of them, he shall be deemed to be a resident of the
(d) If he is a national of both Contracting 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
Article V - Permanent
establishment - 1. For the purposes of this Convention, the term “permanent
establishment” means a fixed place of business in which the business of the
enterprise is wholly or partly carried on.
2. The term “permanent
establishment” shall include—
(a) a place of management ;
(b) a branch ;
(c) an office ;
(d) a factory ;
(e) a workshop or a warehouse ;
(f) a mine, a quarry, an oil field or other place of extraction of
natural resources ;
(g) a permanent sales exhibition ;
(h) a building site or construction or assembly project which exists
for more than ninety days.
3. The term “permanent establishment” shall not
be deemed to include—
(a) the use of facilities solely for the purpose of storage or display
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 or display ;
(c) the maintenance of a fixed place of business solely for the purpose
of purchasing goods or merchandise or for collecting information, for the
enterprise ; and
(d) the maintenance of a fixed place of business solely for the purpose
of advertising, or for scientific research, for the enterprise.
4. A person acting in one of the Contracting
States for or on behalf of an enterprise of the other
(i) he has and habitually exercises in that State
general authority to negotiate and enter into contracts for or on behalf of the
enterprise, unless the activities of the person are limited to the purchase of
goods or merchandise for the enterprise, or
(ii) he habitually maintains in the first-mentioned
Contracting State a stock of goods or merchandise belonging to the enterprise
from which the person regularly delivers goods or merchandise for or on behalf
of the enterprise, or
(iii) he habitually secures orders in the
first-mentioned
5. An enterprise of a
6. The fact that a company, which is a resident
of one of the Contracting States, has a subsidiary company which either is a
resident of the other Contracting State or carries on a trade or business in
that other Contracting State (whether through a permanent establishment or
otherwise) shall not, of itself, constitute that subsidiary company a permanent
establishment of its parent company.
Chapter III - Taxation Of Income
Article VI - Income
from immovable property - 1. Income from immovable property shall be
taxable only in the
2. The term “immovable property” shall be
defined in accordance with the law and usage 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 professional
services.
Article VII - Business
profits - 1. The profits of an enterprise of a
2. 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 purpose 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.
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
laid down 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 purpose of export to the enterprise of which it is
the permanent establishment.
6. 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 the
present article.
1Article
VIII - Air transport - 1. Income derived from the operation of aircraft
by an enterprise of one of the Contracting States shall not be taxed in the
other Contracting State unless the aircraft is operated wholly or mainly
between places within that other Contracting State.
2. Paragraph (1) shall likewise apply in
respect of participations in pools of any kind by enterprises engaged in air
transport.
Article IX - Shipping
- Income derived from the operation of ships by an enterprise of one of the
Contracting States shall not be taxed in the other Contracting State unless the
ships are operated wholly or mainly between places within that other
Contracting State.
Article X - Associated
enterprises - 1. Where—
(a) an enterprise of a Contracting State participates directly or
indirectly in the management, control or capital of an enterprise of the other
Contracting State, or
(b) the same persons participate directly or indirectly in the
management, control or capital of an enterprise of a Contracting State and an
enterprise of the other Contracting State,
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. If the information available to the taxation
authority concerned is inadequate to determine, for the purposes of paragraph (1)
of this article, the profits which might be expected to accrue to an
enterprise, nothing in that paragraph shall affect the application of the law
of either Contracting State in relation to the liability of that enterprise to
pay tax on an amount determined by the exercise of a discretion or the making
of an estimate by taxation authority of that State :
Provided that such discretion shall be exercised or
such estimate shall be made, so far as the information available to the
taxation authority permits, in accordance with the principle stated in that
paragraph :
Provided
further that the amount so
determined or the estimate so made may be amended or revised when adequate
information is furnished to the taxation authority concerned.
Article XI - Dividends
- 1. Dividends paid by a company which is a resident of India to a resident
of the United Arab Republic may be taxed in India.
2. Dividends paid by a company which is a
resident of the United Arab Republic to a resident of India may be taxed in the
United Arab Republic. But such dividends shall only be subject to the tax on
income derived from movable capital, the defence tax,
the national security tax and the supplementary taxes (which taxes shall be
deducted at the source). If paid to a natural person, the general income-tax
levied on the net total income may also be imposed. Dividends paid shall be
deducted from the amount of the distributing company’s taxable income or
profits subject to the tax chargeable in respect of its industrial and
commercial profits if such dividends are distributed out of the taxable profits
of the same taxable year but not distributed out of accumulated reserves or
other assets.
3. Dividends paid by a company which is a
resident of India whose activities lie solely or mainly in the United Arab
Republic shall, in the United Arab Republic be treated as mentioned in
paragraph (2) of this article when such dividends are distributed in the
United Arab Republic.
4. Dividends paid by a company which is a
resident of the United Arab Republic whose activities lie solely or mainly in
India shall, in India, be treated as mentioned in paragraph (1) of this
article when such dividends are distributed in India.
5. Dividends, deemed under article 11 of United
Arab Republic Law 14 of 1939 to be paid out of the yearly profits of a
permanent establishment maintained in the United Arab Republic by an Indian
company whose activities extend to countries other than the United Arab
Republic shall, in the United Arab Republic, be treated as mentioned in
paragraph (2) of this article.
The permanent
establishment shall be considered to have distributed as dividends in the
United Arab Republic within 60 days from the closing of its financial year, an
amount equivalent to 90 per cent of its total net profits liable to tax on
industrial and commercial profits without applying the provisions of article 36
of Law 14 of 1939, provided that the remaining 10 per cent of the net profits
shall be set aside to form a special reserve which shall be entered in the
local balance sheet submitted annually to the United Arab Republic tax
authorities. Such amount shall only be subject to the tax on commercial and
industrial profits.
All amounts
deducted from the aforesaid 10 per cent set aside to form the special reserve
for purposes other than the redemption of losses incurred in the trade or
business carried on by that permanent establishment situated in the United Arab
Republic shall be deemed to have been distributed in the United Arab Republic
and shall be taxed accordingly.
6. The provisions of paragraphs (1) and (4)
of this article, in the case of the United Arab Republic, shall not affect the
application of article 4 of Law 14 of 1939, but the provisions of those
paragraphs will be applied for the purpose of elimination of double taxation in
accordance with provisions of paragraph (2) of article XXIV of this
Convention.
Article XII - Interest
- 1. Interest paid by a resident of India to a resident of the United Arab
Republic may be taxed in India.
2. Interest paid by a resident of the United
Arab Republic to a resident of India may be taxed in the United Arab Republic.
But such Interest shall only be subject to the tax on income derived from
movable capital, the defence tax, the national
security tax and the supplementary taxes (which taxes shall be deducted at the
source). If paid to a natural person, the general income-tax levied on the net
total income may also be imposed.
3. The term “interest” as used in this article
includes income from Government securities, bonds or debentures (exclusive of
interest on debts secured by mortgages on real estate, in which case article VI
shall apply) and whether or not carrying a right to participate in profits, and
debt-claims of every kind as well as all other income assimilated to income
from money lent by the taxation law of the State in which the income arises.
4. Interest shall be deemed to arise in a
Contracting state when the payer is that State itself, a political
sub-division, a local authority or a resident of that State. Where, however,
the person paying the interest, whether he is a resident of a Contracting State
or not, has in a Contracting State a permanent establishment in connection with
which the indebtedness on which the interest is paid was incurred, and such
interest is borne by such permanent establishment, then such interest shall be
deemed to arise in the Contracting State in which the permanent establishment
is situated.
5. The provisions of paragraph (1) of
this article in the case of the United Arab Republic shall not affect the
application of article 4 of Law 14 of 1939, but the provisions of that
paragraph will be applied for the purpose of elimination of double taxation in
accordance with provisions of paragraph (2) of article XXIV of this
Convention.
Article XIII - Royalties
- 1. Royalties arising in a
2. 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, any
patent, trade mark design or model, plan, secret formula or process, or for the
use of, or the right to use, industrial, commercial or scientific equipments or
for information concerning industrial, commercial or scientific experience but
does not include any royalty or other like amount in respect of the operation
of mines, quarries or any other place of extraction of natural resources.
3. Rents and royalties arising in a Contracting
State in respect of cinematographic films and paid to a resident of the other
Contracting State shall be taxable only in the first-mentioned State according
to the tax laws of that state.
4. The provisions of this article shall not
apply where founders’ shares are issued in the United Arab Republic as a
consideration for the rights mentioned in paragraph (2) of this article
and taxed in accordance with the provisions of article 1 of Law 14 of 1939. In
such event article XI of this Convention shall be applicable.
5. Royalty shall be deemed to arise in a
Contracting State when the payer is that State itself, a political
sub-division, a local authority or a resident of that State.
Article XIV - Capital
gains - 1. Subject to the provisions of paragraph (3) gains from the
sale, exchange or transfer of a capital asset being immovable property, as
defined in paragraph (2) of article VI, or movable property shall be taxable
only in the Contracting State in which such property is situated.
2. For the purpose of this article the situs of the shares of a company shall be deemed to be in
the Contracting State where the company is incorporated.
3. Capital gains derived from the sale, exchange
or transfer of a capital asset being a ship or aircraft shall be taxable only
in the Contracting State in which such ship or aircraft is registered.
Article XV - Independent
personal services - 1. Income derived by a resident of the United Arab
Republic in respect of professional services rendered or other independent
activities of a similar character performed in India may be taxed in India only
if he is present in India for a period or periods exceeding in the aggregate
183 days during the relevant “previous year”, and only to the extent the income
is attributable to such services or activities in India.
2. Income derived by a resident of India in
respect of professional services rendered or other independent activities of a
similar character performed in the United Arab Republic may be taxed in the
United Arab Republic only if he is present in the United Arab Republic for a
period or periods exceeding in the aggregate 183 days during the relevant
“fiscal year”, and only to the extent the income is attributable to such
services or activities in the United Arab Republic.
3. The term “professional services” includes
independent scientific, literary, artistic, educational or teaching activities
as well as the independent activities of physicians, lawyers, engineers,
architects, dentists and accountants.
Article XVI - Dependent
personal services - 1. Subject to the provisions of articles XVII, XIX and
XX, salaries, wages and other similar remuneration derived by a resident of a
Contracting State in respect of an employment shall be taxable only in that
State unless the employment is exercised in the other Contracting State. If the
employment is so exercised, such remuneration is derived therefrom
may be taxed in that other State.
2. Notwithstanding the provisions of paragraph (1)
remuneration derived by a resident of the United Arab Republic in respect of an
employment exercised in India shall not be taxed in India, if—
(a) he is present in India for a period or periods not exceeding in the
aggregate 183 days during the relevant “previous year”, and
(b) the remuneration is paid by, or on behalf of, an employer who is
not a resident of India, and
(c) the remuneration is subject to United Arab Republic tax, and
(d) the remuneration is not deducted in computing profits of an
enterprise chargeable to Indian tax.
3. Notwithstanding the provisions of paragraph (1)
remuneration derived by a resident of India in respect of an employment
exercised in the United Arab Republic shall not be taxed in the United Arab
Republic, if—
(a) he is present in the United Arab Republic for a period or periods
not exceeding in the aggregate 183 days during the relevant “fiscal year”, and
(b) the remuneration is paid by, or on behalf of an employer who is not
resident of the United Arab Republic, and
(c) the remuneration is subject to Indian tax, and
(d) the remuneration is not deducted in computing profits of an
enterprise chargeable to United Arab Republic tax.
4. Notwithstanding the preceding provisions of
this article, remuneration in respect of an employment exercised aboard a ship
or aircraft in international traffic, may be taxed in the Contracting State in
which the place of effective management of the enterprise is situated.
Article XVII - Directors’
fees - Directors’ fees and similar payments derived by a resident of a
Contracting State in his capacity as a member of the Board of Directors of a
company which is a resident of the other Contracting State may be taxed in that
other State.
Article XVIII - Artistes
and athletes - 1. Notwithstanding anything contained in Articles XV and
XVI, income derived by public entertainers such as theatre, motion picture,
radio or television artistes and musicians, and by athletes, from their personal
activities as such may be taxed in the Contracting State in which these
activities are exercised.
2. The provisions of paragraph (1) shall
apply only if the personal activities are exercised in the Contracting State
for a period or periods in the aggregate exceeding 15 days during the relevant
“previous year” or as the case may be, “fiscal year”, and only in respect of
the income attributable to the personal activities exercised in that State.
Article XIX - Pensions
- Subject to the provisions of paragraph (1) of article XX, pensions
and other similar remuneration paid to a resident of a Contracting State in
consideration of past employment shall be taxable only in that State.
Article XX - Governmental
functions - 1. Remuneration, including pensions, paid by, or out of funds,
created by, a Contracting State or a political sub-division, or a local
authority thereof, to any individual in respect of services rendered to that
State or sub-division or local authority thereof in the discharge of functions
of a governmental nature may be taxed in that State.
2. The provisions of paragraph (1) of
this article shall also apply to remuneration including pensions, paid by the
Central Bank, the Post Railways, Telephone and Telegraph, Radio and Television Organisations of the United Arab Republic and by the
Reserve Bank of India, Postal Administration, the Public Railway Authorities
and the All India Radio Organisation of India.
3. The provisions of articles XVI, XVII and XIX
shall apply to remuneration or pensions in respect of services rendered in
connection with any trade or business other than those mentioned in paragraph (2)
carried on by any of the legal entities mentioned in this article.
Article XXI - Students
- An individual of one of the Contracting States, who is temporarily
present in the other Contracting State solely:
(a) as a student at a university, college or school in the other
Contracting State,
(b) as a business or technical apprentice, or
(c) as the recipient of a grant, allowance or award for the primary
purpose of study or research from a religious, charitable, scientific or
educational organisation,
shall not be
taxed in the other Contracting State in respect of remittances from abroad for
the purposes of his maintenance, education or training or in respect of a
scholarship grant. The same shall apply to any amount representing remuneration
for services rendered in that other State, provided that such services are in
connection with his studies or practical training or are necessary for the
purpose of his maintenance.
Article XXII - Professors,
teachers and researchers - A professor or a teacher from one of the
Contracting States who receives remuneration for teaching or scientific
research, during a period of temporary residence not exceeding two years at a
university, college, technical school or other institution for higher education
in the other Contracting State, shall not be taxed in that other Contracting
State in respect of that remuneration.
Article XXIII - Income
not expressly mentioned - The laws in force in either of the Contracting
States will continue to govern assessment and taxation of income in the
respective Contracting States except where express provision to the contrary is
made in this Convention.
Chapter IV - Method For Elimination Of Double
Taxation
Article XXIV - Exemption
and credit methods - 1. Where a person being a resident of a Contracting
State derives income from the other Contracting State and that income, in accordance
with the provisions of this Convention, shall be taxable only in that other
Contracting State, or may be taxed in that other Contracting State, the
first-mentioned State shall, subject to the provisions of paragraph (2)
exempt such income from tax but may, in calculating tax on the remaining income
of that person, apply the rate of tax which would have been applicable if the
exempted income had not been so exempted.
2. Where a person being a resident of a
Contracting State derives income from the other Contracting State and that
income, in accordance with the provisions of articles XI and XII may be taxed
in that other Contracting State, the first-mentioned State shall allow as a
deduction from the tax, on the income of that person and amount equal to the
tax paid in that other Contracting State. Such deduction shall not, however,
exceed that part of the tax, as computed before the deduction is given, which
is appropriate to the income derived from that other Contracting State.
Chapter V - Special Provisions
Article XXV - Non-discrimination
- 1. The nationals of a Contracting State shall not be subjected in the
other Contracting State to any taxation or any requirement connected therewith
which is other or more burdensome than the taxation and connected requirements
to which nationals of that other State in the same circumstances and under the
same conditions are or may be subjected.
2. The term “nationals” means :
(a) all individuals possessing the nationality of a Contracting State ;
(b) all legal persons, partnerships and associations deriving their
status as such from the law in force in a Contracting State.
3. The taxation on a permanent establishment
which an enterprise of a Contracting State has in the other Contracting State
shall not be less favourably levied in that other
State than the taxation levied on enterprises of that other State carrying on
the same activities.
This provision
shall not be construed as obliging a Contracting State to grant to residents of
the other Contracting State any personal allowance, reliefs
and reductions for taxation purposes on account of civil status or family
responsibilities which it grants to its own residents.
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 Contracting State to any taxation or any
requirement connected therewith which is other or more burdensome than the
taxation and connected requirements to which other similar enterprises of that
first-mentioned State are or may be subjected in the same circumstances and
under the same conditions.
5. The provisions of this article shall not be
construed as affecting the application in the United Arab Republic of the
exemptions conferred in the United Arab Republic by articles 5 and 6 of Law 14
of 1939.
6. In this article the term “taxation” means
taxes of every kind as specified in this Convention.
Article XXVI - Mutual
agreement procedure - 1. Where a resident of a Contracting State considers
that the actions of one or both of the Contracting States result or will result
for him in taxation not in accordance with this Convention, he may,
notwithstanding the remedies provided by the national laws of those States,
present his case to the competent authority of the Contracting State of which
he is a resident.
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 an appropriate solution, to resolve
the case by mutual agreement with the competent authority of the other
Contracting State, with a view to the avoidance of taxation not in accordance
with the Convention.
3. The competent authorities of the Contracting
States shall endeavour to resolve by mutual agreement
any difficulties or doubts arising as to the interpretation of 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. When it seems advisable in
order to reach agreement to have an oral exchange of opinions, such exchange
may take place through representatives of the competent authorities of the
Contracting States.
Article XXVII - Exchange
of information - 1. The competent authorities of the Contracting States shall
exchange such information as is necessary for the carrying out of this
Convention and of the domestic laws of the Contracting States concerning taxes
covered by this Convention insofar as the taxation thereunder
is in accordance with this Convention. Any information so exchanged shall be
treated as secret and shall not disclosed to any persons or authorities other
than those concerned with the assessment, including judicial determination, or
collection of the taxes which are the subject of this Convention.
2. In no case shall the provisions of paragraph
(1) be construed so as to impose on one of the Contracting States the
obligation—
(a) to carry out administrative measures at variance with the laws or
the administrative practice of that or of the other Contracting State ;
(b) to supply particulars which are not obtainable under the laws or in
the normal course of the administration of that or of the other Contracting
State ;
(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 (ordre public).
Article XXVIII - Diplomatic
and consular privileges - Nothing in this Convention shall affect the
fiscal privileges of diplomatic or consular officials under the general rules
of international law or under the provisions of special agreements.
Chapter VI - Final Provisions
Article XXIX - Entry
into force - 1. This Convention shall be ratified and the instruments of
ratification shall be exchanged at New Delhi as soon as possible.
2. This Convention shall enter into force on the
date of the exchange of the instruments of ratification and its provisions
shall have effect—
(a) in India,—
(i) in the case of income derived from operation
of aircraft (referred to in article VIII), as respects such income derived
during any “previous year” beginning on or after the first day of January, 1961
;
(ii) in the case of any other income, as respects
income derived during any “previous year” beginning on or after the first day
of January of the calendar year in which the exchange of the instruments of
ratification takes place.
(b) in the United Arab Republic,—
(i) in the case of income from operation of
aircraft (referred to in article VIII), as respects such income derived during
any accounting period ending on or after the first day of January, 1961 ;
(ii) in the case of any other income,—
(1) as respects tax on income from movable capital
and tax on wages, salaries, indemnities and pensions, which taxes are due on or
after the date on which the exchange of the instruments of ratification takes
place ;
(2) as respects tax on commercial and industrial
profits for any accounting period ending on or after the date on which the
exchange of the instruments of ratification takes place ;
(3) as respects tax on income derived from
immovable property (including the land tax, the buildings tax and the ghaffir tax), tax on profits from liberal professions and
all other non-commercial professions and the general income-tax for the
calendar year in which the exchange of the instruments of ratification takes
place.
The rules in
sub-paragraph (b) of this paragraph shall be correspondingly applicable
respectively to the defence tax, national security
tax and to the supplementary taxes.
Article XXX - Termination
- Either of the Contracting States may terminate this Convention after a
period of five years from the date on which the Convention enters into force by
giving to the other Contracting State, through the diplomatic channels, written
notice of termination, provided that such notice shall be given only on or
before the thirtieth day of June in any calendar year, and in such event, this
Convention shall cease to be effective—
(a) in India,—
as respects income derived
during any “previous year” beginning on or after the first day of January of
the calendar year next following that in which the notice is given ;
(b) in the United Arab Republic,—
(1) as respects tax on income from movable capital and tax on wages,
salaries, indemnities and pensions, which taxes are due on or after the first
day of July in the calendar year next following that in which the notice is
given ;
(2) as respects tax on commercial and industrial profits for any
accounting period ending on or after the first day of July in the calendar year
next following that in which the notice is given ;
(3) as respects tax on income derived from immovable property
(including the land tax, the buildings tax and the ghaffir
tax), tax on profits from liberal professions and all other non-commercial
professions and the general income-tax for the calendar year next following
that in which the notice is given.
The rules in
sub-paragraph (b) of this paragraph shall be correspondingly applicable
respectively to the defence tax, national security
tax and to the supplementary taxes.
In witness whereof,
the undersigned, being duly authorised thereto, have
signed this Convention.
Done in duplicate
at Cairo this 20th day of February, 1969, in the English language.
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