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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 23

Elimination of Double Taxation

(1) In the case of Barbados, subject to the provisions of the laws of Barbados regarding the allowance as a credit against Barbados tax of tax payable in a territory outside Barbados double taxation shall be eliminated as follows:

  • (a) tax payable under the laws of San Marino and in accordance with the Convention, whether directly or by deduction, on profits or income from sources within San Marino (excluding, in the case of a dividend tax payable in respect of the profits out of which the dividends is paid), shall be allowed as a credit against any Barbados tax computed by reference to the same profits or income in respect of which the San Marino tax is computed;
  • (b) in the case of a dividend paid by a company that is a resident of San Marino to a company that is a resident of Barbados and which holds directly at least 10 percent of the capital of the company paying the dividend, the credit referred to in sub-paragraph (a) shall take into account, the San Marino tax payable by the company paying the dividend in respect of the profits out of which such dividends is paid; and
  • (c) the credit, however, shall in no case exceed the part of the tax, as computed before the credit is given, which is appropriate to the income which may be taxed in San Marino.

(2) In the case of San Marino double taxation shall be eliminated as follows:

  • Where a resident of San Marino owns items of income which are taxable in Barbados, San Marino, in determining its taxes on income specified in Article 2 of this Agreement, may include in the basis upon which such taxes are imposed the said items of income, unless specific provisions of this Agreement otherwise provide.
  • In the case, San Marino shall deduct from the taxes so calculated the tax on income paid in Barbados, but in an amount not exceeding that proportion of the aforesaid San Marino tax which such items of income bear to the entire income.
  • However, no deduction will be granted if the item of income is subjected in San Marino to a final withholding tax and/or to a substitute tax by request of the recipient of the said income in accordance with the San Marino law.