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CHAPTER I - Income Tax
CHAPTER II - Registration Fees and Stamp Duties
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.


[Income from Securities - Apportionment]

(1) Where a company having its fiscal domicile in one of the Contracting States is subject to the payment of a tax imposed on the distribution of income from movable securities or similar income (income from shares, founder's shares, shares of interest and partnership shares, interest on bonds or any other negotiable debt securities) and it has one or more permanent establishments in the territory of the other Contracting State in respect of which it is also subject, in the latter State, to payment of the same taxes, there shall be an apportionment made, between the two States, of income giving rise to the said tax, in order to avoid double taxation.

(2) The apportionment referred to in the preceding paragraph shall be established for each financial year, based on the ratio:

  • (a) A / B for the State in which the company does not have its fiscal domicile;
  • (b) (B - A) / B for the State in which the company has its fiscal domicile.

(3) The letter A denotes the amount from accounting results obtained by the company from all the permanent establishments held by it in the State where it does not have its fiscal domicile, with all compensation being made between the profits and loss results of these establishments. These accounting results shall tally with those that are deemed to have been realized in the said establishments, under the provisions of Articles 10 and 11 of this Convention.

(4) Letter B denotes the total accounting result of the company, as it emerges from its general balance sheet.

(5) In determining the total accounting result, the losses recorded for the overall permanent establishments of the company in a given State shall be disregarded, with all compensations being made (offset) between the profit and loss statements of these establishments.

(6) In cases where the total accounting result of a company is nil or negative, the apportionment shall be carried out on a previously worked out basis.

(7) In the absence of such a previously worked out basis, the apportionment shall be carried out according to a fixed quota through a mutual Agreement between the competent authorities of the concerned Contracting States.