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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.

PROTOCOL

At the time of signing the Agreement between the Government of the Republic of Mauritius and the Government of the United Arab Emirates for the Avoidance of Double Taxation with respect to Taxes on Income, the undersigned have agreed upon the following provisions which shall form an integral part of the Agreement.

(1) It was agreed that any income derived by a Contracting State from the other Contracting State shall be exempt from income tax.

For the purposes of this paragraph, the term "Contracting State" shall mean:

  • (a) in the case of Mauritius:
    • (i) the Government of Mauritius;
    • (ii) a local authority of Mauritius; and
    • (iii) an agency of the Government of Mauritius which is agreed to form an integral part of the Government of Mauritius.
    • (iv) any agency, but only to the extent of any share of Government In the capital or equity of that agency.
  • (b) in the case of the United Arab Emirates:
    • (i) the Government of the United Arab Emirates;
    • (ii) a local government of the United Arab Emirates (Abu Dhabi, Dubai, Sharjah, Ras al Khaimah, Fujairah, Umm al Qaiwain and Ajman);
    • (iii) an agency of the federal or local government which is agreed to form an integral part of the Government of the United Arab Emirates or an integral part of one of its local governments; and
    • (iv) any agency, but only to the extent of any share of Government in the capital or equity of that agency.

(2) It is understood that in the case of the United Arab Emirates, the agencies currently covered by sub-paragraph 1(b)(iii) are:

  • (i) Abu Dhabi Investment Authority;
  • (ii) Companies engaged in real estate development; and
  • (iii) Dubai Investment Corporation.

(3) With respect to Article 8, it is understood that:

  • (a) the profits derived by an enterprise from the operation of ships or aircraft shall include:
    • (i) profits from the lease of ships or aircraft; and
    • (ii) interest derived from bank deposits directly connected with the operation of ships and aircraft in international traffic.
  • (b) where an enterprise of a Contracting State engaged in the operation of ships or aircraft provides goods or performs services that are supplementary or incidental to its operation of ships or aircraft in international traffic, the income from the provision of such goods or services will be dealt with under the provisions of Article 8.
  • (c) notwithstanding the provisions of paragraph 1(f) of Article 3, the term "enterprise of a Contracting State" shall include:
    • (i) in the case of the United Arab Emirates, the Emirates, the Ittihad and the Arabia Airlines or any other air transport enterprise managed and controlled in the United Arab Emirates and carried on either by an individual resident in the United Arab Emirates and not resident in Mauritius, or by a partnership or corporation created or organised under the laws of United Arab Emirates;
    • (ii) in the case of Mauritius, Air Mauritius Limited or any other air transport enterprise managed and controlled in Mauritius and carried on either by an individual resident in Mauritius and not resident in the United Arab Emirates, or by a partnership or corporation created or organised under the laws of Mauritius.
  • (d) If an air transport enterprise of Mauritius with respect to profits referred to in Article 8 is charged to any tax of the kind referred to in Article 2 in one of the shareholding States of any air transport enterprise mentioned in paragraph 3(c)(i) of this Protocol the Contracting States shall reopen negotiations without delay with a view to arriving at an appropriate solution in respect of the application of Article 8 of the Agreement.

(4) Notwithstanding the provisions of Article 13, it is understood that under the current law of both Contracting States no tax is charged on capital gains.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at Singapore in duplicate, this 18th day of September of the year two thousand and six in the English and Arabic Languages, both texts being equally authentic. In case of divergency, the English text shall prevail.

FOR THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS:

FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES: