ARTICLE 23
Elimination of Double Taxation
(1) In the Republic of Austria double taxation shall be eliminated as follows:
- (a) Where a resident of the Republic of Austria derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the Islamic Republic of Iran, the Republic of Austria shall, subject to the provisions of sub-paragraphs b) to c) and paragraph 3, exempt such income or capital from tax.
- (b) Where a resident of the Republic of Austria derives items of income which, in accordance with the provisions of Articles 10, 11 and 12, may be taxed in the Islamic Republic of Iran, the Republic of Austria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in the Islamic Republic of Iran. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from the Islamic Republic of Iran.
- (c) The provisions of sub-paragraph a) shall not apply to income derived or capital owned by a resident of the Republic of Austria where the Islamic Republic of Iran applies the provisions of this Agreement to exempt such income or capital from tax or applies the provisions of paragraph 2 of Article 10, 11 or 12 to such income.
(2) In the Islamic Republic of Iran double taxation shall be eliminated as follows:
Where a resident of the Islamic Republic of Iran derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in the Republic of Austria, the Islamic Republic of Iran shall allow:
- (a) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the Republic of Austria;
- (b) as a deduction from the tax on the capital of that resident, an amount equal to capital tax paid in the Republic of Austria.
Such deduction in either case shall not, however, exceed that part of the tax as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in the Republic of Austria.
(3) Where in accordance with any provision of the Agreement income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.