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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.

ARTICLE 23

Methods for Elimination of Double Taxation

(1) The laws in force in either of the Contracting State shall continue to govern the taxation of income in the respective Contracting State except, when express provision to the contrary is made in this Agreement. When income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article.

(2) Double taxation shall be eliminated as follows:

  • (i) In India:
    • (a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Mozambique, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Mozambique.
    • Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Mozambique.
    • (b) Where in accordance with any provision of the Agreement income derived by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
  • (ii) In Mozambique:
    • (a) Where a resident of Mozambique derives income which, in accordance with the provisions of this Agreement, may be taxed in India, Mozambique shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in India.
    • Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in India.
    • (b) Where in accordance with any provision of the Agreement, income derived by a resident of Mozambique is exempt from tax in Mozambique, Mozambique may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.