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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 21

Income of Government and Institutions

(1) Notwithstanding the provisions of Article 10, dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State that is referred to in paragraph 2 of Article 4 and that is the beneficial owner of the dividends shall be taxable only in the other Contracting State provided that:

  • (a) the recipient, together with all other residents of the other Contracting State that are referred to in paragraph 2 of Article 4, neither own or control shares of the company representing more than 25 per cent of the value of all of its issued and outstanding shares nor control directly or indirectly in any manner whatever more than 25 per cent of the votes in respect of the shares of the company; and
  • (b) the recipient has not received the dividends in the course of carrying on an industrial or commercial activity.

If the conditions set out in this paragraph are not met, the provisions of Article 10 shall apply.

(2) Notwithstanding the provisions of Article 13, gains derived by a resident of a Contracting State that is referred to in paragraph 2 of Article 4 from the alienation of shares, the dividends on which would be exempt from taxation in the other Contracting State, shall be taxable only in the first-mentioned Contracting State.