PROTOCOL TO THE AGREEMENT BETWEEN THE GOVERNMENT OF THE ITALIAN REPUBLIC AND THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME AND THE PREVENTION OF FISCAL EVASION
At the signing of the Agreement concluded today between the Government of the Italian Republic and the Government of the Islamic Republic of Iran for the avoidance of double taxation with respect to taxes on income and the prevention of fiscal evasion, the undersigned have agreed upon the following additional provisions which shall form an integral part of the said Agreement.
It is understood that:
(1) With reference to paragraph 3 of Article 7, the term "expenses which are incurred for the purposes of the permanent establishment" means the expenses directly connected with the activity of the permanent establishment.
(2) With reference to Article 8, profits from the operation in international traffic of ships or aircraft shall include:
- (a) profits derived from the rental on a bare-boat basis of ships or aircraft used in international traffic,
- (b) profits derived from the use or rental of containers if such profits are incidental to the other profits from the operation of ships or aircraft in international traffic.
(3) With reference to paragraph 4 of Article 10, paragraph 5 of Article 11, paragraph 4 of Article 12, paragraph 2 of Article 22, the last sentence contained therein shall not be construed as being contrary to the principles embodied in Articles 7 and 14 of this Agreement.
(4) With reference to Article 18, severance payments or similar lump-sum payments, and payments made as a consequence of the termination of any office or employment arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in the State in which they arise and according to the laws of that State.
(5) Taxes withheld at source shall, at the request of the taxpayer, be refunded to the extent that the right to levy the taxes is limited by the provisions of this Agreement. Such request shall be submitted within the time limits provided for by the tax laws of the Contracting State which is obliged to carry out the refund and must contain an official certificate issued by the competent authority of the Contracting State of which the taxpayer is a resident stating that the conditions for claiming the exemptions or reductions provided for in this Agreement have been fulfilled.
The competent authorities of the Contracting States may, by mutual agreement and in accordance with the provisions of Article 25, agree on other procedures for the application of the limitations provided for by this Agreement.
(6) Nothing in this Agreement shall prevent either Contracting State in applying its domestic tax laws in order to prevent fiscal evasion and tax avoidance.
IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.
DONE at Tehran, this nineteenth day of January 2005, corresponding to 30 Dey 1383 Solar Hijra, in two originals, each in the Italian, Persian and English languages, all texts being equally authentic. In case of divergence on interpretation, the English text shall prevail.
FOR THE GOVERNMENT OF THE ITALIAN REPUBLIC:
FOR THE GOVERNMENT OF THE ISLAMIC REPUBLIC OF IRAN: