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CHAPTER I - Scope of the Arrangement
CHAPTER II - Definitions
CHAPTER III - Taxation of Income
CHAPTER IV - Avoidance of Double Taxation
CHAPTER V - Special Provisions
CHAPTER VI - 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.

ARTICLE 9

Associated Enterprises

(1) Where:

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

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which 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 so accrued, may be included in the profits of that enterprise and taxed accordingly. It is understood, however, that the fact that associated enterprises have concluded arrangements, such as cost sharing arrangements or general services agreements, for or based on the allocation of executive, general administrative, technical and commercial expenses, research and development expenses and other similar expenses, is not in itself a condition as meant in the preceding sentence.

(2) Where a country includes in the profits of an enterprise of that country-and taxes accordingly-profits on which an enterprise of the other country has been charged to tax in that other country and the profits so included are profits which would have accrued to the enterprise of the first-mentioned country if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other country shall make an appropriate adjustment to the amount of the tax charged therein on those profits where that other country considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Arrangement and the competent authorities of the countries shall if necessary consult each other.