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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 22

Elimination of Double Taxation

(1) Where a resident of San Marino derives income or owns capital which may be taxed in Andorra in accordance with the provisions of this Convention (except to the extent that these provisions allow taxation by Andorra solely because the income is also income derived by a resident of Andorra or because the capital is also capital owned by a resident of Andorra), San Marino shall allow:

  • (a) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Andorra;
  • (b) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Andorra.

Such deduction in either case shall not, however, exceed that part of the income tax or capital 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 Andorra. Where in accordance with any provision of the Convention income derived or capital owned by a resident of San Marino is exempt from tax in San Marino, San Marino 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.

(2) Subject to the provisions of the law of Andorra regarding the elimination of double taxation which shall not affect the general principle hereof, double taxation shall be eliminated as follows:

  • (a) Where a resident of Andorra derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in San Marino, Andorra shall allow as a deduction from the tax of that resident an amount equal to the tax paid in San Marino.
  • Such deduction shall not, however, exceed that part of the Andorran tax, as computed before the deduction is given, which is attributable to such items of income derived from San Marino.
  • (b) Where a resident of Andorra derives income or owns capital which, in accordance with the provisions of this Convention, is exempt from tax in Andorra, Andorra may in order to calculate the amount of tax on the remaining income or capital of the resident, take into account the income or capital that has been exempted.