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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.


At the signing today of the Agreement between the Republic of India and the Oriental Republic of Uruguay for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions, which shall form an integral part of the Agreement:

(I) It is understood that the last sentence of paragraph (1) of Article 4 (Resident) does not exclude from the scope of this agreement, any person who is liable to tax, in the Oriental Republic of Uruguay by virtue of the application of the principle of territorial source.

(II) With reference to Article 8 (Shipping and Air Transport), it is understood that, profits derived by a transportation enterprise which is a resident of a Contracting State from the use, maintenance, or rental of containers (including trailers and other equipment for the transport of containers) used for the transport of goods or merchandise in International traffic shall be taxable only in that Contracting State unless the containers are used solely within the other Contracting State.

(III) With reference to Article 8 (Shipping and Air Transport), it is understood that, interest on investments directly connected with the operation of ships or aircraft in international traffic shall be regarded as profits derived from the operation of such ships or aircraft if they are integral to the carrying on of such business, and the provisions of Article 11 (Interest) shall not apply in relation to such interest.

(IV) With reference to Article 8 (Shipping and Air Transport) and Article 13 (Capital gains), it is understood that notwithstanding anything contained therein read with the domestic law of the Contracting States lead to a situation where an income is not taxable in the resident State, the source State shall retain the right to tax such income.

(V) It is understood that the provisions of Article 25 (Non-discrimination) shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of other Contracting State has in the first-mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of that first-mentioned State, nor as being in conflict with the provisions of paragraph (3) of Article 7 (Business Profits).

(VI) With reference to Article 27 on Exchange of Information, it is understood that India may share the information received under paragraph (1) of that Article from Uruguay in respect of a resident of India, with other law enforcement agencies of Government of India or its Parliament.

(VII) With reference to Article 31 (Entry Into Force), it is understood that the provisions of Article 27 (Exchange of Information) shall have effect, relating to any fiscal year, next following the calendar year in which the Agreement enters into force.

IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Protocol.

DONE in duplicate at New Delhi, this eighth day of September 2011, in the English, Spanish and Hindi languages, all texts equally authentic. In case of divergence between the texts, the English text shall prevail.