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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 22

Elimination of Double Taxation

(1) Subject to the provisions of the law of Luxembourg regarding the elimination of double taxation which shall not affect the general principle hereof, double taxation shall be eliminated as follows:

  • (a) Where a resident of Luxembourg derives income or owns capital which in accordance with the provisions of this Convention may be taxed in Andorra, Luxembourg shall, subject to the provisions of sub-paragraphs (b) and (c) of this paragraph, exempt such income or capital from tax, but may, in order to calculate the amount of tax on the remaining income or capital of the resident, apply the same rates of tax as if the income or capital had not been exempted.
  • (b) Where a resident of Luxembourg derives income which in accordance with the provisions of Articles 10 and 16 of this Convention may be taxed in Andorra, Luxembourg shall allow as deduction from the income tax on individuals or from the corporation tax of that resident an amount equal to the tax paid in Andorra. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Andorra.
  • (c) The provisions of sub-paragraph (a) of this paragraph shall not apply to income derived or capital owned by a resident of Luxembourg where Andorra applies the provisions of this Convention to exempt such income or capital from tax or applies the provisions of paragraph (2) of Article 10 of this Convention, to such income.

(2) Subject to the provisions of the law of Andorra regarding the elimination of double taxation which shall not affect the general principle hereof, double taxation shall be eliminated as follows:

  • (a) Where a resident of Andorra derives income or owns capital which in accordance with the provisions of this Convention may also be taxed in Luxembourg, Andorra shall allow as a deduction from the tax of that resident an amount equal to the tax on income or capital paid in Luxembourg. Such deduction shall not, however, exceed that part of the Andorran tax, as computed before the deduction is given, which is attributable to the income or capital which may be taxed in Luxembourg.
  • (b) Where in accordance with any provision of the Convention income derived or capital owned by a resident of Andorra is exempt from tax in Andorra, Andorra may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.