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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 9

Associated Enterprises

(1) Where:

  • (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,
  • (b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

and, in either case, conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those that would be made between independent enterprises, then any profits, which would, but for those conditions, have accrued to one of the enterprises, but by reason of those conditions, have not accrued, may be included in the profit of that enterprise and taxed accordingly.

(2) Where a Contracting State includes in the profits of an enterprise of that State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged to tax in that other State, and the profits so included are profits which would have been accrued to the enterprise of the first-mentioned State, if the conditions made between the two enterprises had been those that would have been made between independent enterprises, then that other State, if it agrees that the adjustment made by the first-mentioned State is justified in terms of both principle and in terms of the respective amount, shall make the appropriate adjustment to the amount of tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of the Convention and the competent authorities of the Contracting States shall, if necessary, consult each other.