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Luxembourg - San Marino Tax Treaty (as amended by 2009 protocol) — Orbitax Tax Hub

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

Subject to the provisions of the laws of the two Contracting States concerning the elimination of double taxation that do not affect the general principle therein, double taxation shall be avoided in the following manner:

  • (a) Where a resident of a Contracting State receives income or possesses capital which, in accordance with the provisions of this Convention, is taxable in the other Contracting State, then the first mentioned Contracting State shall exempt this income or capital from tax, subject to the provisions of sub-paragraphs (b) and (c), but it may, for calculating the amount of tax on the remaining income or capital of the resident, apply the same rates of tax as if the income or capital had not been exempted.
  • (b) Where a resident of a Contracting State receives elements of income which, in accordance with the provisions of Articles 10 and 16 is taxable in the other Contracting State, then the first mentioned Contracting State shall grant, on the tax on the income of individuals or on the tax on the income from local authorities of such a resident, a deduction of an amount equal to the tax paid in the other Contracting State. However, this deduction may not exceed the portion of tax, calculated prior to deduction, corresponding to these elements of income received in the other Contracting State.
  • (c) Notwithstanding the provisions of sub paragraph (b), where a company, which is a resident of a Contracting State, holds at least 10 percent of the capital of the company paying the dividends which is a resident of the other Contracting State, during an uninterrupted period of at least twelve months preceding the decisions for the distribution of dividends, the first-mentioned Contracting State shall exempt from tax the dividends paid by the company which is a resident of the other Contracting State, to the company which is a resident of the first-mentioned State.
  • (d) The provisions of sub-paragraph (a) shall not apply to income received or to capital possessed by a resident of a Contracting State, where the other Contracting State applies the provisions of this Convention for exempting this income or this capital from tax or applies the provisions of paragraph (2) of Article 10 to this income.