background image
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 moment of signing the Convention with respect to taxes on income and on capital, this day concluded between Iceland and the Republic of Austria, the undersigned have agreed that the following provisions shall form an integral part of the Convention.

(1) With reference to paragraph (3) of Article 16:

It is understood that paragraph (3) shall also apply to legal entities which carry on orchestras, theatres, ballet groups as well as to members of such cultural entities if such legal entities substantially are non-profit entities and if this is certified by the competent authority of the State of residence.

(2) With reference to Article 25:

  • (1) The competent authority of the applicant State shall provide the following information to the competent authority of the requested State when making a request for information under the Convention to demonstrate the foreseeable relevance of the information to the request:
    • (a) the identity of the person under examination or investigation;
    • (b) a statement of the information sought including its nature and the form in which the applicant State wishes to receive the information from the requested State;
    • (c) the tax purpose for which the information is sought;
    • (d) grounds for believing that the information requested is held in the requested State or is in the possession or control of a person within the jurisdiction of the requested State;
    • (e) to the extent known, the name and address of any person believed to be in possession of the requested information;
    • (f) a statement that the request is in conformity with the law and administrative practices of the applicant State, that if the requested information was within the jurisdiction of the applicant State then the competent authority of the applicant State would be able to obtain the information under the laws of the applicant State or in the normal course of administrative practice and that it is in conformity with this Convention;
    • (g) a statement that the applicant State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.
  • (2) It is understood that the exchange of information provided in Article 25 does not include measures which constitute "fishing expeditions".
  • (3) It is understood that paragraph (5) of Article 25 does not obligate the Contracting States to exchange information on a spontaneous or automatic basis.
  • (4) It is understood that in addition to the above-mentioned principles for the interpretation of Article 25 the principles established in the OECD Commentaries shall be considered as well.

(3) Interpretation of the Convention:

It is understood that provisions of the Convention which are drafted according to the corresponding provisions of the OECD Model Convention on Income and on Capital shall generally be expected to have the same meaning as expressed in the OECD Commentary thereon. The understanding in the preceding sentence will not apply with respect to the following:

  • (a) any reservations or observations to the OECD Model or its Commentary by either Contracting State;
  • (b) any contrary interpretations in this Protocol;
  • (c) any contrary interpretation in a published explanation by one of the Contracting States that has been provided to the competent authority of the other Contracting State prior to the entry into force of the Convention;
  • (d) any contrary interpretation agreed to by the competent authorities after the entry into force of the Convention.

The OECD Commentary-as it may be revised from time to time-constitutes a means of interpretation in the sense of the Vienna Convention of 23 May 1969 on the Law of Treaties.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Protocol.

DONE in duplicate at Vienna, on this thirtieth day of June 2016, in the German, Icelandic and English languages, each text being equally authentic. In case of divergence of interpretation the English text shall prevail.