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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.


Business Profits

(1) Profits of an enterprise of a Contracting State shall be taxed only in that Contracting State unless such enterprise carries on business activities in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of such enterprise according to paragraph (2) may be taxed in the other State.

(2) Subject to the provisions of this Article and Article 22, where an enterprise of a Contracting State, mentioned in paragraph (1) of this Article, carries on business in the other Contracting State through a permanent establishment situated therein, then in each Contracting State there shall be attributed to that permanent establishment, profits which it may have earned if it had been a distinct and separate enterprise, engaged in the same or similar activities under the same or similar conditions and dealing wholly and independently with the enterprise of which it is a permanent establishment.

(3) If a Contracting State under Paragraph (2) corrects the profits which an enterprise of a Contracting State earns in that country, and correspondingly taxes the profits of the company already taxed in the other Contracting State, then the other Contracting State will make a corresponding correction in the amount necessary to prevent the occurrence of double taxation, if it concurs with the correction performed by the first named state; if the other Contracting State does not concur, the Contracting States will resolve the resulting double taxation in mutual consultation and accord.

(4) Where profits include items of income that are dealt with separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.