Application of the Agreement
(1) This Agreement shall apply to the following taxes imposed on behalf of a Contracting State, its provinces or local authorities, irrespective of the manner in which they are levied:
- (a) Chapter II to taxes on income and capital; there shall be regarded as such all taxes imposed on total income and total capital or elements of income or capital, including taxes on gains from the alienation of movable or immovable property and taxes on capital appreciation.
- (b) Chapter III to estate, inheritance and gift taxes; there shall be regarded as such taxes which:
- (aa) are levied by reason of a death as estate taxes, inheritance devolution taxes, capital transfer deductions or gift taxes on decease, or
- (bb) are imposed on transfers among living persons only because they were effected invalidly or against inadequate recompense.
- (c) Chapter IV to taxes of every kind and description, unless the context otherwise requires. Customs and excise duties shall, however, be exempted; turnover and luxury taxes shall not be deemed to be consumption taxes for the sphere of application of this chapter.
(2) The existing taxes to which the Agreement shall apply are listed in the annex to the Agreement.
(3) The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the signature of the Agreement in addition to or in place of the existing taxes.
(4) In this Agreement:
- (a) Chapter II shall apply to persons resident in one Contracting State or in both Contracting States;
- (b) Chapter III shall apply to:
- (aa) estates and inheritances, if the testator was resident in one Contracting State or in both Contracting States at the time of his death, and
- (bb) gifts, if the donor was resident in one Contracting State or in both Contracting States at the time of the gift.