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Untd A Emirates - Colombia Tax Treaty (2017, not yet in force) — Orbitax Tax Hub

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

Credit Method

(1) Where a resident of Colombia derives income from sources in the United Arab Emirates that in accordance with the provisions of this Convention, may be taxed in the United Arab Emirates, Colombia shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the United Arab Emirates, subject to the limitations provided by and the requirements set under the tax laws of Colombia. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income that may be taxed in the United Arab Emirates.

(2) Where a resident of the United Arab Emirates derives income from sources in Colombia which, in accordance with the provisions of this Convention, may be taxed in Colombia, the United Arab Emirates shall allow as a deduction from the tax on the income of that resident, an amount equal to the Income tax paid in Colombia. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Colombia.

(3) For the purposes of applying paragraphs (1) and (2) of this Article, an item of gross income, as determined under the laws of a Contracting State, derived by a resident of that Contracting State, that under this Convention may be taxed in the other Contracting State, shall be deemed to be income from sources in that other State.

(4) Where in accordance with any provision of the Convention income derived by a resident of a Contracting State Is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.