PROTOCOL
The Swiss Confederation and the United Arab Emirates,
Have agreed at the signing at Dubai on the 6th day of October 2011 of the Convention between the two States for the avoidance of double taxation with respect to taxes on income upon the following provisions which shall form an integral part of the said Convention.
(1) General:
The competent authorities shall consult each other in order to take appropriate measures to prevent the misuse of this Convention. These measures may, in particular be aimed to prevent the misuse of Articles 10 and 11 by persons who are not residents of a Contracting State.
(2) Insofar as Article 4:
Within the meaning of paragraphs (1) and (2) of Article 4, the term "resident of a Contracting State" includes:
- (a) a recognized pension fund or a provident benefit institution in that Contracting State, and
- (b) an organization constituted and operated exclusively for religious, charitable, scientific, cultural or educational purposes (or more of these purposes) and which is a resident of a Contracting State in accordance with its laws, and whose income is generally exempt from tax in that State in accordance with its legislation.
With regard to sub-paragraph (a), it is understood that there shall be considered as pension fund or provident benefit institution of a Contracting State, any pension fund or provident institution recognized and controlled in accordance with the procedures of that State, whose income is generally exempt from tax in that State and is administered primarily to manage or provide pension or retirement benefits or for generating income on behalf of one or more of these pension plans.
(3) Insofar as Article 7:
- (a) Having regard to paragraphs (1) and (2) of Article 7, it is understood that where an enterprise of a Contracting State sells merchandise or exercises an industrial or commercial activity in the other Contracting State through a permanent establishment situated therein, the profits of such permanent establishment shall not be calculated on the basis of the total amount received by the enterprise, but only on the basis of the part of the total remuneration that is attributable to the actual activity of the permanent establishment in terms of such sales or for such activity;
- (b) In the case of contracts pertaining to the study, supply, installation or construction of industrial, commercial, or scientific equipment or public works, where the enterprise has a permanent establishment available to it, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but solely on the basis of that part of the contract which is actually performed by that permanent establishment in the Contracting State where it is situated.
The profits pertaining to that part of the contract carried out by the head office of the enterprise shall be taxable only in the Contracting State of which the enterprise is a resident;
(4) Insofar as Articles 7 and 12:
It is understood that the payments for the use or right to use any industrial, commercial or scientific equipment shall constitute profits of enterprises within the meaning of Article 7.
(5) Insofar as Article 18:
It is understood that the term "pensions" used in Article 18 covers not only periodic payments but also the lump sum payments.
(6) Insofar as Article 25:
- (a) It is understood that the requesting State should have first exhausted all the usual sources of information provided by its internal taxation procedure before submitting the request for information.
- (b) It is understood that the tax authorities of the requesting State shall provide the following information to the tax authorities of the requested State when submitting a request for information under Article 25 of the Convention:
- (i) the identity of the person subject to examination or investigation;
- (ii) the period covered by the application;
- (iii) a description of the information sought including its nature and the form in which the requesting State wishes to receive the information from the requested State;
- (iv) the tax/fiscal purpose for which the information is sought;
- (v) to the extent known, the name and address of any person believed to be in possession of the required information.
- (c) It is understood that the reference to "foreseeably relevant information" is intended to ensure an exchange of information in tax matters to the widest possible extent, without it being open to the Contracting States to "go fishing for information" or to request information that is unlikely to be relevant to the tax affairs of a given taxpayer. While letter (b) of paragraph (6), contains important procedural requirements aimed at preventing "fishing for information", sub-paragraphs (i) to (v) of letter (b) of paragraph (6), must nevertheless be interpreted so as not to hinder effective exchange of information.
- (d) It is further understood that neither Contracting State is under any obligation, on the basis of Article 25 of the Convention, to conduct a spontaneous or automatic exchange of information.
- (e) It is understood that in case of exchange of information, the rules of administrative procedure regarding taxpayers' rights provided in the requested Contracting State shall remain applicable before the information is transmitted to the requesting Contracting State. It is further understood that this provision is intended to ensure a fair hearing to the taxpayer and not at preventing or unduly delaying the process of the exchange of information.
(7) Insofar as the Convention:
Notwithstanding the other provisions of the Convention, subject to Articles 24 and 25, the profits of an enterprise of a Contracting State from the exploration or exploitation of natural resources in the other Contracting State shall be taxable only in that other State.
DONE, in duplicate in Dubai, on the 6th day of October of the year 2011, in French, Arabic and English languages, each text being equally authentic. In case of a difference of interpretation between the French and Arabic texts, the English text shall prevail.
FOR THE SWISS FEDERAL COUNCIL:
WOLFGANG AMADEUS BRUELHART
FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES:
YOUNIS AL HAJI KHOORI