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ARTICLE 27

Limitation of Benefits

(1) A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other Contracting State only if such person is:

  • (a) an individual;
  • (b) a Contracting State, or a political subdivision or local authority thereof. For the purposes of this Article the following institutions are deemed being an integral part of the government of a Contracting State:
    • (aa) In the case of the Slovak Republic:
      • (i) the Government of the Slovak Republic,
      • (ii) the local authorities,
      • (iii) Narodna banka Slovenska (the National Bank of Slovakia),
      • (iv) Eximbanka SR (Export-import Bank of the Slovak Republic),
      • (v) Slovenska zarucna a rozvojova banka, a.s. (Slovak Guarantee and Development Bank),
      • (vi) Agentura pre riadenie dlhu a likvidity (Debt and Liquidity Management Agency),
    • (bb) In case of the United Arab Emirates;
      • (i) Central Bank of the United Arab Emirates,
      • (ii) Emirates Investment Authority,
      • (iii) Abu Dhabi Investment Authority,
      • (iv) International Petroleum Investment Company (IPIC),
      • (v) Abu Dhabi Investment Council,
      • (vi) Investment Corporation of Dubai,
      • (vii) Abu Dhabi National Energy Company (TAQA),
      • (viii) Mubadala Development Company,
      • (ix) the Abu Dhabi Retirement Pensions and Benefits Fund,
      • (x) the General Pension and Social Security Authority,
    • and any other institutions directly or indirectly owned by either Contracting State that shall be agreed between the two Contracting States through exchange of letters.
  • (c) engaged in the active conduct of a trade or business in the first-mentioned State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company) and the income derived from the other Contracting State is derived in connection with, or is incidental to, that trade or business;
  • (d) a company in whose principal class of shares there is a substantial and regular trading on a recognized securities exchange, or which is wholly owned, directly or indirectly, by a resident of that Contracting State in whose principal class of shares there is substantial and regular trading on a recognized securities exchange;
  • (e) an entity that is a not-for-profit organization (including a private foundation) and that, by virtue of that status, is generally recognized and exempt from income taxation in its Contracting State of residence, provided that more than half of the beneficiaries, members or participants, if any, in such organization are entitled, under this Article, to the benefits of this Convention; or
  • (f) a person that satisfies both of the following conditions:
    • (i) more than 50 percent of the beneficial interest in such person (or in the case of a company, more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to the benefits of this Convention under sub-paragraphs (a), (b), (d) or (e); and
    • (ii) not more than 50 percent of the gross income of such person is used directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons not entitled to the benefits of this Convention under sub-paragraph (a), (b), (d) or (e).

(2) A person which is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the State in which the income arises so determines.

(3) For purposes of sub-paragraph (d) of paragraph 1, the term "recognized securities exchange" means:

  • (a) in case of the United Arab Emirates:
    • (i) the Abu Dhabi Securities Exchange;
    • (ii) the Dubai Financial Market;
    • (iii) Dubai Gold and Commodities Exchange;
    • (iv) Nasdaq Dubai;
    • (v) Abu Dhabi Global Market;
  • (b) the Slovak stock exchange (Burza Cennych Papierov Bratislava, A.S.) and any other stock exchange approved by the State authorities; and
  • (c) any other stock exchange located in a Contracting State that shall be agreed between the competent authorities of the Contracting States through exchange of letters.

(4) For purposes of sub-paragraph (f)(ii) of paragraph 1, the term "gross income" means gross receipts, or where an enterprise is engaged in a business which includes the manufacture or production of goods, gross receipts reduced by the direct costs of labour and materials attributable to such manufacture or production and paid or payable out of such receipts.