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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.


Elimination of Double Taxation

(1) Double Taxation shall be eliminated in the Contracting States as follows:

  • (a) Where a resident of a Contracting Stale derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in that other State;
    • (ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in that other State.

(2) Such deduction in either case under this article in 1 (a) (i) or (ii) shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital, which may be, taxed in that other State.

(3) Where in accordance with any provision of the Convention income derived or capital owned 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 or capital of that resident, take into account the exempted income or capital.

(4) Without prejudice to Article 3, the term "Fiji tax payable" for the purposes of paragraph (3) of this article shall include an amount equivalent to the amount of any tax forgone which, under the laws of Fiji and in accordance with this Agreement, would have been payable as tax on income but for an exemption from, or a reduction of tax on that income resulting from the operation of the special incentives under the laws of Fiji for the promotion of economic development of Fiji which were in force on the date of the signature of this Agreement or any other provisions which may subsequently be introduced in Fiji in modification of, or in addition to those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character.