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India - Israel Tax Treaty (as amended by 2015 protocol) — Orbitax Tax Hub

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 3

General Definitions

(1) For the purposes of this Convention, unless the context otherwise requires:

  • (a) the term "India" means the territory of India and includes the territorial sea and airspace above it, as well as any other maritime zone in which India has sovereign rights, other rights and jurisdiction, according to the Indian law and in accordance with international law, including the U.N. Convention on the Law of the Sea;
  • (b) the term "Israel" means the State of Israel, and when used in a geographical sense, means the territory and the territorial sea over which it exercises its State sovereignty and jurisdiction, as well as the continental shelf, the exclusive economic zone and that part of the sea-bed and sub-soil under the sea over which it exercises sovereign rights according to the international law;
  • (c) the term "person" includes an individual, a company, a body of persons and any other entity which is treated as a taxable unit under the taxation laws in force in the respective Contracting State;
  • (d) the term "company" means anybody corporate or any entity which is treated as a body corporate for tax purposes;
  • (e) the terms "a Contracting State" and "the other Contracting State" mean the Republic of India or the State of Israel as the context requires;
  • (f) the terms "enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
  • (g) the term 'international traffic' means any transport by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
  • (h) the term "competent authority" means:
    • (i) in India: the Central Government in the Ministry of Finance (Department of Revenue) or their authorised representative;
    • (ii) in Israel: the Minister of Finance or his authorised representative;
  • (i) the term "national" means:
    • (i) any individual possessing the nationality of a Contracting State;
    • (ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State;
  • (j) the term "fiscal year" means:
    • (i) in the case of India, the twelve-month period beginning on the 1st of April;
    • (ii) in the case of Israel, the twelve-month period beginning on the 1st of January;
  • (k) the term "tax" means Indian tax or Israeli tax, as the context requires, but shall not include any amount which is payable in respect of any default or omission in relation to the taxes to which this Convention applies or which represents a penalty imposed relating to those taxes.

(2)

  • (a) As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.
  • (b) If as a result of the application of sub-paragraph (a), the meaning of a term under the laws of a Contracting State is different from the meaning of that term under the laws of the other Contracting State, or if the meaning of such term is not readily determinable under the laws of one of the Contracting States, the competent authorities of the Contracting States may agree upon a common meaning of that term.
  • (c) If in a particular case, the application of the Convention tails to prevent double taxation because the Contracting States have differing rules with respect to the source of the category of income involved, the competent authorities of the Contracting States may reach agreement as to the source of income in the particular case so as to eliminate double taxation.