Where  under  any  provision  of this Convention income arising in one of the Contracting States is relieved from tax in that  Contracting State and, under the law in force in the other Contracting  State  a  person, in respect of the said income, is subject  to  tax  by  reference  to  the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under  this  Convention in the first-mentioned Contracting State shall  apply  only  to so much of the income as is remitted to or received in the other Contracting State.




1          Income  from  immovable  property  may be taxed in the Contracting State in which such property is situated.


2          (a)        The term "immovable property" shall subject to the

                          provisions of subparagraph (b)

                          below, be defined in accordance with the law of the 

                          Contracting State in which the property in question situated.

            (b)        The  term  "immovable  property" shall in any case include

                         property accessory to immovable property, livestock and

                         equipment used  in agriculture and forestry, rights to which

                         the provisions of general law respecting  landed property

                         apply, usufruct  of  immovable property and rights to variable

                         or fixed payments as consideration for the working of, or the

                         right to work,  mineral deposits, sources and other natural

                         resources; ships, boats and aircraft shall not be regarded as

                         immovable property.


3          The  provisions of paragraph (1) of this Article shall apply  to income derived from the direct use, letting, or use in any other from of immovable property.


4          The provisions of paragraphs (1) and (3) of this Article shall  also  apply  to the income from immovable property of an enterprise  and  to  income from immovable property used for the performance of professional services.




1          The profits of an enterprise of a Contracting State shall be  taxable only in that State unless the enterprise carries on business  in  the  other  Contracting  State through a permanent establishment  situated  therein.  If  the  enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.


2          Where  an enterprise of a Contracting State carries on business  in  the  other  Contracting  State through a permanent establishment  situated therein, there shall in each Contracting State  be attributed to that permanent establishment the profits which  it  might  be  expected to make if it were a distinct and separate  enterprise  engaged  in the same or similar activities under  the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.


3          In  the  determination  of  the profits of a permanent establishment there shall be allowed as deductions expenses of the enterprise (other than expenses which would not be deductible if the permanent establishment were a separate enterprise) which are incurred for the purposes of, and are related to, the permanent establishment,  including  executive  and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.


4          Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts or, in the case of a person who does not claim taxation on the basis of the actual net  profits  of  the permanent establishment, on the basis of a certain reasonable percentage  of  the  gross  receipts of the permanent establishment, nothing in paragraph (2) of this Article shall  preclude  such  State from determining the profits to be taxed by such a method. The method adopted shall, however, be such that the result shall be in accordance with the principles laid down in this Article.


5          No profits  shall  be  attributed  to  a  permanent establishment  by  reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.


6          For the purposes of the preceding paragraphs, the profits to  be  attributed  to  the  permanent  establishment  shall be determined  by the same method year by year unless there is good and sufficient reason to the contrary.


7          Where  profits  include  items  which  are  dealt with separately  in  other  Articles  of  this  Convention,  then the provisions  of  those  Articles  shall  not  be  affected by the provisions of this Article.


8          For the purposes of this Article the term “profits” does not include income from the operation of ships.




1          Income  from  the  operation  by  an  enterprise  of a Contracting  State of aircraft in international traffic shall be taxable  only  in  the  Contracting  State in which the place of effective management of the enterprise is situated.


2          The provision of this Article shall likewise apply to the share in respect of participation in aircraft pools of any kind by such an enterprise engaged in air transport.





            (a)        an  enterprise of a Contracting State participates directly or

                         indirectly in the management, control or capital  of an

                         enterprise of the other Contracting State; or

            (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 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.




Last updated: 08.12.2011