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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) Subject to the provisions of the Law of Liechtenstein 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 Liechtenstein derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in San Marino, Liechtenstein shall, subject to the provisions of sub-paragraphs (b) and (c), exempt such income or capital from tax, but 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.
  • (b) Where a resident of Liechtenstein derives income which, in accordance with paragraph (2) of Article 10 and Article 16 of this Convention, may be taxed in San Marino, Liechtenstein shall credit against Liechtenstein tax on this income the tax paid in accordance with the law of San Marino and with the provisions of this Convention. The amount of tax to be credit must not, however, exceed the Liechtenstein tax due on the income derived from San Marino.
  • (c) Notwithstanding sub-paragraph (b), income from dividends within the meaning of paragraph (2) sub-paragraph (a) and (b) of Article 10 paid by a company that is a resident of Republic of San Marino to a company that is a resident of Liechtenstein and that are not deductible in determining the profits of the payer, shall not be taxed in Liechtenstein.

(2) Subject to the provisions of the Law of San Marino 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 San Marino derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Liechtenstein, 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 or capital of such resident, take into account the exempted income or capital.
  • (b) Where a resident of San Marino derives income which, in accordance with paragraph (2) of Article 10 and Article 16 of this convention, may be taxed in Liechtenstein, San Marino shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Liechtenstein. 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 Liechtenstein.
  • (c) Notwithstanding paragraph (b), where a company which is a resident of San Marino has held at least 10 percent of the capital of a company which is a resident of Liechtenstein paying dividends for an uninterrupted period of at least 12 months prior to the decision to distribute the dividends, San Marino shall exempt from tax the dividends paid by the company which is a resident of Liechtenstein to the company which is a resident of San Marino.