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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.

PROTOCOL

PROTOCOL TO THE CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF AZERBAIJAN AND THE GOVERNMENT OF THE UNITED ARAB EMIRATES FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

At the moment of signing the Convention between the Government of the Republic of Azerbaijan and the Government of the United Arab Emirates for the avoidance of double taxation with respect to taxes on income and on capital, the undersigned have agreed that the following provisions shall form an integral part of the Convention:

(I) Ad Article 5, paragraph (5):

A person, who is authorized to negotiate all elements and details of a contract in a way binding on the enterprise, can be said to exercise this authority in the Contracting State, even if the contract is signed by another person in the other Contracting State in which the enterprise is situated.

(II) Ad Article 2, paragraph (3):

It is understood that if in the future the United Arab Emirates will impose a tax on capital then such capital tax will automatically be added to the list of taxes shown in Article 2.

(III) With respect to the entire Convention it is understood that, if the tax rate in one of the Contracting States is changed for lower than which accrued this Convention, such lower rate should apply automatically to resident of the other Contracting State to the extent that it is more favourable.

(IV) Without prejudice to Article 12 of this Convention, any income derived by a Contracting State, its administrative-territorial subdivisions or political subdivisions, local governments, local authorities thereof, or their financial institutions and holding companies, development funds and authorities arising from the sources in the other Contracting State shall be taxable only in State of residence.

The Contracting States shall determine the sectors and projects that shall be entitled to the benefits mentioned in the first sentence of this provision.

IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this Protocol.

DONE at Abu Dhabi, this twentieth day of November 2006, in the Azerbaijani, Arabic and English languages, all texts being equally authentic. In the case of divergence between the texts the English text shall prevail.

FOR THE GOVERNMENT OF THE REPUBLIC OF AZERBAIJAN:

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES: