Methods for Elimination of Double Taxation
Double taxation shall be avoided as follows:
(1) where a resident of a Member State derives income which, in accordance with the provisions of this Regulation shall also be taxed in another Member State, the first-mentioned State shall deduct, from the tax that it levies on the income of the resident, an amount equal to the income tax paid in the other Member State. However, the amount deducted shall not exceed the portion of the income tax as computed prior to the deduction corresponding to taxable income in the other State;
(2 ) where in accordance with any given provision of this Regulations, income derived by a resident of a Member State or capital owned is exempt from tax in that State, the latter may nevertheless, in calculating the amount tax on the remaining income or capital of such resident, take into account the exempted income or capital;
(3) where a resident transfers, in the same year, his home from one Member State to another Member State, he shall only be taxed in each of these States for income which was available to him, in accordance with the legislation specific to each of the said States.