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ARTICLE 25

Method for Elimination of Double Taxation

(1) Subject to the laws of Vietnam regarding the allowance as a credit against Vietnamese tax of tax payable in any country other than Vietnam, the San Marino tax payable under the laws of San Marino and in accordance with this Agreement by a resident of Vietnam in respect of income derived from San Marino shall be allowed as a credit against Vietnamese tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of San Marino to a company which is a resident of Vietnam and which owns not less than 10 percent of the voting shares of the company paying the dividend, the credit shall take into account San Marino tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Vietnamese tax, as computed before the credit is given, which is appropriate to such item of income.

(2) For the purposes of paragraph (1), the term "San Marino tax payable" shall be deemed to include San Marino tax which would, under the laws of San Marino and in accordance with this Agreement, have been payable on any income derived from sources in San Marino had the income not been taxed at a reduced rate or exempted from San Marino tax in accordance with the provisions of this Agreement and the special incentives under the San Marino laws for the promotion of economic development of San Marino which were in force on the date of signature of this Agreement or any other provisions which may subsequently be introduced in San Marino in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character.

(3) Subject to the laws of San Marino regarding the allowance as a credit against San Marino tax of tax payable in any country other than San Marino, the Vietnamese tax payable under the laws of Vietnam and in accordance with this Agreement by a resident of San Marino in respect of income derived from Vietnam shall be allowed as a credit against San Marino tax payable in respect of that income. Where such income is a dividend paid by a company which is a resident of Vietnam to a company which is a resident of San Marino and which owns not less than 10 percent of the voting shares of the company paying the dividend, the credit shall take into account Vietnamese tax payable by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the San Marino tax, as computed before the credit is given, which is appropriate to such item of income.

(4) For the purposes of paragraph (3), the term "Vietnamese tax payable" shall be deemed to include Vietnamese tax which would, under the laws of Vietnam and in accordance with this Agreement, have been payable on any income derived from sources in Vietnam had the income not been taxed at a reduced rate or exempted from Vietnamese tax in accordance with the provisions of this Agreement and the special incentives under the Vietnamese laws for the promotion of economic development of Vietnam which were in force on the date of signature of this Agreement or any other provisions which may subsequently be introduced in Vietnam in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character.