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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:

  • (a) an enterprise of a Contracting State, directly or indirectly, participates in the management, control or capital of an enterprise of the other Contracting State, or
  • (b) the same persons, directly or indirectly, participate 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 imposed on or agreed between the two enterprises in their commercial or financial relations, which differ from those that would have been agreed between independent enterprises, then any profits that would have accrued to one of the enterprises, but for those conditions have not so accrued, may be included in the profits 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 taxed in that other State, and the profits so included are the profits which would have accrued to the enterprise of the first-mentioned State if the conditions agreed between the two enterprises had been those which would have been agreed between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention, and the competent authorities of the Contracting States shall, if necessary, consult each other.

(3) The Contracting States shall not make any adjustments to the profits derived by an enterprise in cases specified in paragraph (1) of this Article after the expiry of the period prescribed under the domestic laws of the Contracting States.

(4) The provisions of paragraphs (2) and (3) of this Article shall not apply in cases of tax evasion.