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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) It is agreed that double taxation shall be avoided in accordance with the following paragraphs of this Article.

(2) In San Marino:

  • (a) Where a resident of San Marino derives income which, in accordance with the provisions of this Convention, may be taxed in Saint Kitts and Nevis, San Marino shall, subject to the provisions of paragraphs (b) and (c), exempt such income from tax but may, nevertheless, in calculating the amount of tax on the remaining income of such resident, apply the same tax rate which would apply if the income in question were not exempt.
  • (b) Where a resident of San Marino derives income which, in accordance with the provisions of Articles 10, may be taxed in Saint Kitts and Nevis, San Marino shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Saint Kitts and Nevis. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income arising in St. Kitts and Nevis.
  • (c) Notwithstanding the provisions of paragraph (b), where a company which is a resident of San Marino has held at least 25 percent of the capital of a company which is a resident of Saint Kitts and Nevis paying dividends, interest or royalties for an uninterrupted period of at least 12 months prior to the decision to distribute the dividends, or prior to the payment of interest or royalties, San Marino shall exempt from tax the dividends, interest and royalties paid by the company which is a resident of Saint Kitts and Nevis by the company which is a resident of San Marino.

(3) In Saint Kitts and Nevis:

  • (a) Where a resident of Saint Kitts and Nevis derives income which, in accordance with the provisions of this Convention, may be taxed in San Marino, Saint Kitts and Nevis shall, subject to the provisions of paragraphs (b) and (c), exempt such income from tax but may, nevertheless, in calculating the amount of tax on the remaining income of such resident, apply the same tax rate which would apply if the income in question were not exempt.
  • (b) Where a resident of Saint Kitts and Nevis derives income which, in accordance with the provisions of Articles 10 may be taxed in San Marino, Saint Kitts and Nevis shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in San Marino. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income arising in San Marino.
  • (c) Notwithstanding the provisions of paragraph (b), where a company which is a resident of Saint Kitts and Nevis has held at least 25 percent of the capital of a company which is a resident of San Marino paying dividends, interest or royalties for an uninterrupted period of at least 12 months prior to the decision to distribute the dividends, or prior to the payment of interest or royalties, Saint Kitts and Nevis shall exempt from tax the dividends, interest and royalties paid by the company which is a resident of San Marino by the company which is a resident of Saint Kitts and Nevis.