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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 23

Method for Elimination of Double Taxation

(1) In the case of Kyrgyzstan, double taxation shall be avoided as follows:

  • (a) Where a resident of Kyrgyzstan derives income which, in accordance with the provisions of this Agreement, may be taxed in the UAE, Kyrgyzstan shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the UAE
    • (ii) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the UAE.
  • The amount of the tax deducted in accordance with the aforementioned provisions shall not exceed the tax, which would have been charged to this income by the rates effective in Kyrgyzstan.
  • (b) Where a resident of Kyrgyzstan derives income which in accordance with the provisions of this Agreement shall be taxable only in the UAE, Kyrgyzstan may include this income in the tax base, but only for the purpose of establishing the tax rate for such income being applicable for taxation in Kyrgyzstan.

(2) In the case of the UAE, double taxation shall be avoided as follows:

  • (a) Where a resident of UAE derives income which, in accordance with the provisions of this Agreement, may be taxed in the Kyrgyzstan, UAE shall allow:
    • (i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the Kyrgyzstan
    • (ii) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the Kyrgyzstan.
  • The amount of the tax deducted in accordance with the aforementioned provisions shall not exceed the tax, which would have been charged to this income by the rates effective in UAE.
  • (b) Where a resident of UAE derives income which in accordance with the provisions of this Agreement shall be taxable only in the Kyrgyzstan, may UAE include this income in the tax base, but only for the purpose of establishing the tax rate for such income being applicable for taxation in UAE.