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CHAPTER 1 - General Provisions
CHAPTER 2 - Taxation of Income
CHAPTER 3 - Inheritance Tax
CHAPTER 4 - Registration Fees Other than Inheritance Tax-Stamp Duty
CHAPTER 5 - Administrative Assistance
CHAPTER 6 - Special Provisions
CHAPTER 7 - Transitional Provisions
CHAPTER 8 - Final Provisions
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.


Debts of Enterprises

(1) Debts pertaining to enterprises referred to in Articles 26 and 27 mentioned above are deductible from the assets pertaining to such enterprises. If the enterprise has, as per the case, a permanent establishment or a fixed base in several Member States, the debts shall be deductible from the assets pertaining to the establishment or facility on which they depend.

(2) Debts secured either by buildings or immovable property rights or by ships or aircraft referred to in Article 28 above, either by property used for the performance of independent personal services as provided in Article 27 above, or by property pertaining to an enterprise of the nature referred to in Article 26 above, shall be deductible against such property/assets. If the same debt is secured, at the same time, by property situated in several States, the deduction shall be charged against the property in each of them in proportion to the taxable value of such property.

This provision shall only apply to debts referred to in paragraph (1) to the extent that these debts are not covered by the deduction provided in this paragraph.

(3) Debts not referred to in paragraphs (1) and (2) of this Article shall be deducted from the property to which the provisions of Article 29 of this Regulation are applicable.

(4) If the deduction referred to in the three preceding paragraphs leaves, in a Member State an outstanding balance, this balance shall be deducted from other property subject to inheritance tax in that same State, if there are no remaining assets in that State subject to the tax or if the deduction still leaves an outstanding balance, the balance shall be deducted proportionately from the assets subject to tax in the other Member States.