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<html><head><meta http-equiv="Content-Type" content="text/html; charset=windows-1252"><title>Notification No. S.R.O. 885(I)/99, dated 24th July, 1999.(IT)</title>
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<p align="center"> </p>
<p align="center" style="MARGIN: 0px 20px"><font face="Arial" size="2">GOVERNMENT OF PAKISTAN</font></p>
<p align="center" style="MARGIN: 0px 20px"><font face="Arial" size="2"><i>(REVENUE DIVISION)</i></font></p>
<p align="center" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><font face="Arial" size="2">Islamabad,
the 24th July, 1999</font></p>
<p align="center" style="MARGIN: 0px 20px"><font face="Arial" size="2">(Income
Tax)</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
</b><p align="justify" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">S.R.O.
885(I)/99</font></b><font face="Arial" size="2">.--</font></p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">Whereas the
Government of the Islamic Republic of Pakistan the Azerbaijan republic have
executed a Convention for the Avoidance of Double Taxation and the Prevention of
Fiscal Evasion with Respect to Taxes on Income on the 10th April, 1996,
reproduced in the Annex;</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">NOW,
THEREFORE, in exercise of the powers conferred by section 163 of the Income Tax
Ordinance, 1979 (XXXI of 1979), the Federal Government is pleased to direct that
the provisions of the aforesaid Convention shall come into force from the first
day of fiscal year following that in which this convention is
ratified.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="right" style="MARGIN: 0px 20px"><font face="Arial" size="2"><b>ASAD
ARIF </b></font></p>
<p align="right" style="MARGIN: 0px 20px"><font face="Arial" size="2">Member (Direct
Taxes),</font></p>
<p align="right" style="MARGIN: 0px 20px"> </p>
<p align="right" style="MARGIN: 0px 20px"> </p>
<p align="right" style="MARGIN: 0px 20px"> </p>
<p align="right" style="MARGIN: 0px 20px"><u><b><font face="Arial" size="2">Annex</font></b></u></p>
<p align="right" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">CONVENTION</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">BETWEEN</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">THE GOVERNMENT OF THE</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ISLAMIC REPUBLIC OF PAKISTAN</font></b></p>
<p align="center" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">AND</font></b></p>
<p align="center" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">THE GOVERNMENT OF THE</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">AZERBAIJAN REPUBLIC</font></b></p>
<p align="center" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">FOR THE AVOIDANCE OF DOUBLE TAXATION</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">AND THE PREVENTION OF FISCAL EVASION</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">WITH RESPECT TO TAXES ON INCOME</font></b></p>
<p align="center" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">The Government of the Islamic Republic of Pakistan and the Government of
the Azerbaijan Republic-</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">Desiring to conclude a convention for the avoidance of double taxation
and the prevention of fiscal evasion with respect to taxes on income;</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">HAVE agreed as follows :-</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ARTICLE 1</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">PERSONAL SCOPE</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">This Convention shall apply to persons who are residents of one or both
of the Contraction States.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ARTICLE 2</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">TAXES COVERED</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. This
Convention shall apply to taxes on income imposed by or on behalf of a
Contracting State or of its local authorities, irrespective of the manner in
which they are levied.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. There shall
be regarded as taxes on income all taxes imposed by or on total income or on
elements of income including taxes on gains from the alienation of movable or
immovable property, taxes on the total amounts of wages or salaries paid by
enterprises.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The existing
taxes to which the Convention shall apply are in particular :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) in the case of the
Islamic Republic of Pakistan :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(i) the Income
tax;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(ii) the Super Tax;
and</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(iii) the
Surcharge;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> (hereinafter
referred to as "Pakistan tax").</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) in the case of the
Azerbaijan Republic :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(i) the tax on profit
and some incomes of legal persons;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(ii) the income tax on
physical persons;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(iii) land tax;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> (hereinafter
referred to as "Azerbaijan tax").</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The convention
shall apply also to any identical or substantially similar taxes which are
imposed by either Contracting States after the date of signature of the
Convention in addition to, or in place of the existing taxes. The competent
authorities of the Contracting States shall notify each other of any substantial
changes which have been made in their respective taxation laws.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ARTICLE 3</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">GENERAL DEFINITIONS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. For the
purposes of this Convention, unless the context otherwise requires :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) the term "Pakistan" used
in the geographical sense means Pakistan as defined in the Constitution of the
Islamic Republic of Pakistan and includes any area outside the territorial
waters of Pakistan which under the laws of Pakistan and international law is an
area within which Pakistan exercise sovereign rights with respect to the natural
resources like sea-bed and sub-soil.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) The term "Azerbaijan"
means territory of the Azerbaijan Republic as defined in the Constitution of
Azerbaijan Republic, including any sea area within which the sovereign rights of
the Azerbaijan may be implemented with respect to sea-bed and sub-soil and their
natural resources and any area which has been or may hereinafter be designated
in accordance with international law and the legislation of the Azerbaijan
Republic;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) the term "person"
includes an individual, a company and any other body of persons;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(d) the term "company" means
any body corporate or any entity which is treated as a body corporate for tax
purposes;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(e) the terms "enterprise of
a Contracting State" and "enterprise of the other Contracting State" mean
respectively, an enterprise carried on by a resident of a Contracting State and
an enterprise carried on by a resident of the other Contracting
State;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(f) the term "a Contracting
State" and "the other Contracting State" mean Islamic Republic of Pakistan or
the Azerbaijan Republic as the context requires;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(g) the term "international
traffic" means any transport by a ship or aircraft operated by an enterprise of
a Contracting State, except when the ship or aircraft is operated solely between
places in the other Contracting State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(h) the term "competent
authority" means :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(i) in Pakistan, the
Central Board of Revenue or its authorised representative;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(ii) in Azerbaijan, Ministry
of Finance and their authorized representative.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 140px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(i) the term "national"
means any individual, possessing the nationality of a Contracting State or any
legal person, partnership or association deriving their Status from the laws in
force in the Contracting State;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. As regards the
application of this Convention by a Contracting State, any term not defined
herein shall, unless the context otherwise requires, have the meaning which it
has under the laws of that State concerning the taxes to which the Convention
applies.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ARTICLE 4</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">RESIDENT</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. For the
purposes of this Convention, the term "resident of a Contracting State" means
any person who, under the laws of that State, is liable to tax therein by reason
of his domicile, residence, place of management, or any other criterion of a
similar nature. But this term does not include any person who is liable to tax
in that State in respect only of income from source in that State or capital
situated therein.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Where by reason of
the provisions of paragraph 1 of this Article, an individual is a resident of
both Contracting States, then his status shall be determined as follows
:-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) he shall be deemed to be
a resident of the State in which he has a permanent home available to him; if he
has a permanent house available to him in both States, he shall be deemed to be
a resident of the State with which his personal and economic relations are
closer (centre of vital interests);</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) if the State in which he
has his centre of vital interests cannot be determined, or if he has not a
permanent home available to him in either State, he shall be deemed to be a
resident of the State in which he has an habitual abode;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) if he has an habitual
abode in both States or in neither of them, he shall be deemed to be a resident
of the State in which he is a national;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(d) if he is a national of
both States or of neither of them, the competent authorities of the Contracting
States shall settle the question by mutual agreement.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. Where by reason of
the provisions of paragraph 1 of this Article, a person other than an individual
is a resident of both Contracting States, the competent authorities of the
Contracting States shall endeavour to settle the question by mutual agreement.
In the absence of such agreement the person shall be entitled to claim any
relief or exemption from tax provided by this Convention.</font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 5</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">PERMANENT ESTABLISHMENT</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. For the
purposes of this Convention, the term "permanent establishment" means a fixed
place of business through which the business of the enterprise is wholly or
partly carried on.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The term "permanent
establishment" includes especially :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) a place of
management;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) a branch;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) an office;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(d) a factory;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(e) a workshop;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(f) a mine, an oil or
gas well, a quarry or any other place of exploration or extraction of natural
resources;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The term "permanent
establishment" likewise encompasses :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) a building site, a
construction, assembly or installation project or supervisory activities in
connection there with, but only when such site, project or activities continue
for a period of more than 6 months.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) the furnishing of
services, including consultancy services, by an enterprise through employees or
other personnel engaged by the enterprise for such purpose, but only where
activities of that nature continue (for the same or a connected project) within
the country for a period or periods aggregating 183 days or more within any 12
months period.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. Notwithstanding the
preceding provisions of this Article, the term "permanent establishment" shall
be deemed not be include :-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) the use of facilities
solely for the purpose of storage or display of goods or merchandise belonging
to the enterprise;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) the maintenance of a
stock of goods or merchandise belonging to the enterprise solely for the purpose
of storage or display;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) the maintenance of a
stock of goods or merchandise belonging to the enterprise solely for the purpose
of processing by another enterprise;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(d) the maintenance of a
fixed place of business solely for the purpose of purchasing goods or
merchandise, or for collecting information, for the enterprise;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(e) the maintenance of a
fixed place of business solely for the purpose of carrying on, for the
enterprise, any other activity of a preparatory or auxiliary
character;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(f) the maintenance of a
fixed place of business solely for any combination of activities mentioned in
sub-paragraph (a) to (c) provided that the overall activity of the fixed place
of business resulting from this combination of a preparatory or auxiliary
character.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Notwithstanding the
provisions of paragraphs 1 and 2, where a person, other than an agent of an
independent status to whom paragraph 7 applies, is acting in a Contracting State
on behalf of an enterprise of the other Contracting State; that enterprise shall
be deemed to have a permanent establishment in the first mentioned Contracting
State in respect of any activities which that person undertakes for the
enterprise, if such a person :</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) has and habitually
exercise in that State an authority to conclude contracts in the name of the
enterprise, unless the activities of such person are limited to those mentioned
in paragraph 4 which, if exercised through a fixed place of business, would not
make this fixed place of business a permanent establishment under the provisions
of that paragraph; or</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) has no such authority,
but habitually maintains in the first-mentioned State a stock of goods or
merchandise from which he regularly delivers goods or merchandise on behalf of
the enterprise.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">6. Notwithstanding the
preceding provisions of this Article, an insurance enterprise of a Contracting
State shall , except in regard to re-insure, be deemed to have a permanent
establishment in the other Contracting State if it collects premiums in the
territory of that other State or insures risks situated therein through a person
other than an agent of an independent status to whom paragraph 7
applies.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">7. an enterprise shall
not be deemed to have a permanent establishment in a Contracting State merely
because it carries on business in that State through a broker, general
commission agent or any other agent of an independent status, provided that such
persons are acting in the ordinary course of their business. However, when the
activities of such an agent are devoted wholly or almost wholly on behalf of
that enterprise, he will not be considered an agent of an independent status
within the meaning of this paragraph.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">8. The fact that a
company which is a resident of a Contracting State controls or is controlled by
a company which is a resident of the other Contracting State, or which carries
on business in that other Contracting State (whether through a permanent
establishment or otherwise), shall not of itself constitutes either company a
permanent establishment of the other.</font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 6</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">INCOME FROM IMMOVABLE PROPERTY</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Income derived by a
resident of a Contracting State from immovable property (including income from
agriculture or forestry) situated in the other Contracting State may be taxed in
that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. In the present
Convention the term "immovable property" shall have the meaning which it has
under the law of the Contracting State in which the property in question is
situated. The term shall in any case include property accessory to immovable
property. Livestock and equipment used in agriculture and forestry, fishery of
every kind, 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 etc. and aircraft
shall not be regarded as immovable property.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The provisions of
paragraph 1 of this Article shall apply to income derived from the direct use,
letting or use in any other form of immovable property.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">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 independent personal services.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font><b><font face="Arial" size="2">ARTICLE 7</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">BUSINESS PROFITS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">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 it attributable to that permanent
establishment.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Subject to the
provisions of paragraph 3 of this Article, 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 is 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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. In determining the
profits of a permanent establishment, there shall be allowed as deductions
expenses which are incurred for the purposes of the permanent establishment,
including a reasonable allocation of executive and general administrative
expenses so incurred, whether in the State in which the permanent establishment
is situated or elsewhere.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. Insofar as it has
been customary in a Contracting State to determine, according to its law, 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,
nothing in paragraph 2 of this Article shall preclude that Contracting State
from determining the profits to be taxed by such an apportionment as may be
customary, the method of apportionment adopted shall, however, be such that the
result shall be in accordance with the principles contained in this
Article.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">7. Where profits
include items of income 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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 8</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">SHIPPING, INLAND WATERWAYS TRANSPORT AND AIR TRANSPORT</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Profits of an
enterprise of a Contracting State, resident of a Contracting State from the
operation of ships or aircraft in international traffic shall be taxable only in
that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Profits derived by
an enterprise of a Contracting State from the operation of boats engaged in
inland waterways transport shall be taxable only in that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. Profits derived by
a transportation enterprise which is a resident of a Contracting State from the
use, maintenance, or rental of containers (including trailer and other equipment
for the transport of containers) used for the transport of goods or merchandise
shall be taxable only in that Contracting State unless the containers are used
solely within the other Contracting State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The provisions of
paragraph 1 shall also apply to profits from the participation in a pool, a
joint business or an international operating agency.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 9</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ASSOCIATED ENTERPRISES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Where
--</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) a enterprise of a
Contracting State participates directly or indirectly in the management, control
or capital of an enterprise of the other Contracting State; or</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(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
enterprise 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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">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 accrued to the enterprise of the first-mentioned State if the
conditions made between the two enterprises had been those which would have been
made 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.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 10</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">DIVIDENDS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Dividends paid by a
company which is a resident of a Contracting State to a resident of the other
Contracting State may be taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. However, such
dividends may also be taxed in the Contracting State of which the company paying
the dividends is a resident and according to the laws of that State, but if the
recipient is the beneficial owner of the dividends the tax so charged shall not
exceed 10 per cent of the gross amount of the dividends. The competent
authorities of the Contracting States shall by mutual agreement settle the mode
of application of this limitation. This paragraph shall not affect the taxation
of the company in respect of the profits out of which the dividends are
paid.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The term
"dividends" as used in this Article means income from shares or other rights,
not being debt-claims, participating in profits, as well as income from other
corporate rights which is subjected to the same taxation treatment as income
from shares by the laws of the State of which the company making the
distribution is a resident.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The provisions of
paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of
the dividends, being a resident of a Contracting State, carries on business in
the other Contracting State of which the company paying the dividends is a
resident, through a permanent establishment situated therein or performs in that
other State independent personal services from a fixed base situated therein,
and the holding in respect of which the dividends are paid is effectively
connected with such permanent establishment or fixed base. In such case, the
provisions of Article 7 or Article 14 of this Convention, as the case may be,
shall apply.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Where a company
which is a resident of a Contracting State derives profits or income from the
other Contracting State, that other State may not impose any tax on the
dividends paid by the company except insofar as such individends are paid to a
resident of that other State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent establishment or a
fixed base situated in that other State, nor subject the company's undistributed
profits to a tax on the company's undistributed profits, even if the dividends
paid or the undistributed profits consist wholly or partly of profits or income
arising in such other State.</font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2"> </font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 11</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">INTEREST</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Interest arising in
a Contracting State and paid to a resident of the other Contracting State may be
taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. However, such
interest may also be taxed in the Contracting State in which it arises and
according to the laws of that State, but if the recipient is the beneficial
owner of the interest the tax so charged shall not exceed 10 per cent of the
gross amount of the interest.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The term "interest"
as used in this Article means income from debt-claims of every kind and in
particular, income from government securities and income from bonds or
debentures, including premiums and prizes attaching to such securities, bonds,
or debentures.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The provisions of
paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of
the interest, being a resident of a Contracting State, carries on business in
the other Contracting State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State independent
personal services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with such
permanent establishment or fixed base. In such case, the provisions of Article 7
or Article 14 of this Convention, as the case may be, shall apply.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Interest shall be
deemed to arise in a Contracting State when the payer is that Contracting State
itself, a local authority or a resident of that State. Where, however, the
person paying the interest, whether he is a resident of Contracting State or
not, has in a Contracting State a permanent establishment or a fixed base in
connection with which the indebtedness on which the interest is paid was
incurred, and such interest is borne by such permanent establishment or fixed
base, then such interest shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">6. Where, by reason of
a special relationship between the payer and the beneficial owner or between
both of them and some other person, the amount of the interest, having regard to
the debt-claim for which it is paid, exceeds the amount which would have been
agreed upon by the payer and the beneficial owner in the absence of such
relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State, due regard being
had to the other provisions of this Convention.</font></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 12</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ROYALTIES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Royalties arising
in a Contracting State and paid to a resident of the other Contracting State may
be taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. However, such
royalties may also be taxed in the Contracting State in which they arise and
according to the laws of that State, but if the recipient is the beneficial
owner of the royalties then the tax so charged shall not exceed 10 per cent of
the gross amount of such royalties. The competent authorities of the Contracting
State shall by mutual agreement settle the mode of application of
this.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The term
"royalties" as used in this article means payments of any kind received as a
consideration for the use of, or the right to use, any copyright of literary,
artistic or scientific work including cinematograph films, or films or tapes for
television or radio broadcasting, any patent, trade mark, design or model, plan,
secret formula or process, or for information concerning industrial, commercial
or scientific experience.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The provisions of
paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of
the royalties, being a resident of Contracting State carries on business in the
other Contracting State in which the royalties arise through a permanent
establishment situated therein or performs in that other State independent
personal services from a fixed base situated therein, and the right of property
in respect of which the royalties are paid is effectively connected with such
permanent establishment or fixed based. In such case the provisions of Article 7
or Article 14 of this Convention, as the case may be, shall apply.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Royalties shall be
deemed to arise in a Contracting State when the payer is a resident of that
state. Where, however, the person paying the royalties, whether he is a resident
of a Contracting State or not, has in any State a permanent establishment or
fixed base in connection with which the liability to pay the royalties was
incurred and such royalties are borne by such permanent establishment or fixed
base, then such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">6. Where, by reason of
special relationship between the payer and the beneficial owner or between both
of them and some other person, the amount of royalties, having regard to the
use, right or information for which they are paid, exceeds the amount which
would have been agreed upon by the payer and the beneficial owner in the absence
of such relationship, the provisions of this Article shall apply only to the
last-mentioned amount. In such case, the excess part of the payments shall
remain taxable according to the laws of each Contracting State, due regard being
had to the other provisions of this Convention.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 13</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">CAPITAL GAINS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Gains derived by a
resident of a Contracting State from the alienation of immovable property,
referred to in Article 6 of this Convention and situated in the other
Contracting State may be taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Gains from the
alienation of movable property forming part of the business property of a
permanent establishment which an enterprise of a Contracting State has in the
other Contracting State or of movable property pertaining to a fixed base
available to a resident of a Contracting State in the other Contracting State
for the purposes of performing independent personal services, including such
gains from the alienation of such a permanent establishment (alone or with the
whole enterprise) or of such fixed base may be taxes in that other
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. Gains derived by an
enterprise of a Contracting State from the alienation of ships or aircraft
operated in international traffic, boats engaged in inland waterways transport,
referred to in Article 8 or movable property pertaining to the operation of such
ships, aircraft, boats shall be taxable only in that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. Gains from the
alienation of shares of the capital stock of a company the property of which
consists directly or indirectly principally of immovable property situated in a
Contracting State may be taxed in that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Gains from the
alienation of any property other than that referred to in paragraphs 1, 2, 3 and
4 shall be taxable only in the Contracting State of which the alienator is a
resident.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 14</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">INDEPENDENT PERSONAL SERVICES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Income derived by a
resident of a Contracting State in respect of professional services or other
activities of an independent character shall be taxable only in that State
except in the following circumstances, when such income may also be taxed in the
other Contracting State :</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) if he has a fixed base
regularly available to him in the other Contracting State for the purpose of
performing his activities; in that case, only so much of the income as is
attributable to that fixed base may be taxed in that other State; or</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) if his stay in the other
Contracting State is for a period or periods aggregating 183 days or more in any
12 months period commencing or ending in the fiscal year concerned; in that case
only so much of the income as is derived from his activities performed in that
other State in the year may be taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The term
"professional services" includes especially independent, scientific, literary,
artistic, educational or teaching activities, as well as the independent
activities of physicians, lawyers, engineers, architects, dentists and
accountants.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 15</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">DEPENDENT PERSONAL SERVICES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Subject to the
provisions of articles 16, 18, 19 and 20 of this Convention, salaries, wages and
other similar remuneration derived by a resident of a Contracting State in
respect of an employment shall be taxable only in that State unless the
employment is exercised in the other Contracting State. If the employment is so
exercised, such remuneration as is derived therefrom may be taxed in that other
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Notwithstanding the
provisions of paragraph 1 of this Article, remuneration derived by a resident of
a Contracting State in respect of an employment exercised in the other
Contracting State shall be taxable only in the first-mentioned State if
:</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) the recipient is present
in the other State for a period or periods not exceeding in aggregate 183 days
in any 12 months period commencing or ending in the fiscal year concerned;
and</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) the remuneration is paid
by, or on behalf of, an employer, who is not a resident of the other State;
and</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) the remuneration is not
borne by a permanent establishment or a fixed base which the employer has in the
other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. Notwithstanding the
preceding provisions of this Article, remuneration derived in respect of an
employment exercised abroad a ship or aircraft operated in international
traffic, may be taxed in the Contracting State the resident of which this
enterprise is.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 16</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">DIRECTORS' FEES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">Directors' fees and other similar payments derived by a resident of a
Contracting State in his capacity as a member of the board of directors of a
company which is a resident of the other Contracting State may be taxed in that
other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 17</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ARTISTES AND SPORTSMEN</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Notwithstanding the
provisions of articles 14 and 15 of this Convention, income derived by a
resident of a Contracting State as an entertainer, such as a theatre, motion
picture, radio or television artiste or a musician, or as a sportsman, from his
personal activities as such exercised in the other Contracting State may be
taxed in that other State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Where income in
respect of personal activities exercised by an entertainer or a sportsman in his
capacity as such accrues not to the entertainer or sportsman himself but to
another person, that income may, notwithstanding the provisions of Articles 7,
14 and 15 of this Convention, be taxed in the Contracting State in which the
activities of the entertainer or sportsman are exercised.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The provisions of
paragraphs 1 and 2 of this Article, shall not apply to income derived from
activities performed in a Contracting State by artists, entertainers or
sportsmen, if the visit to that State is substantially supported by public funds
of one or both of the Contracting States or of administrative territorial
subdivisions or local authorities thereof. In such a case, the income is taxable
only in the Contracting State of which the artists, entertainers or the
sportsmen is a resident.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 18</font></b></p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">PENSIONS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Pensions and other
similar remuneration paid to a resident of a Contracting State in consideration
of past employment shall be taxable only in that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Any pension paid
by, or out of funds created by, a Contracting State or an administrative
territorial Sub-division or a local authority thereof to an individual in
respect of services rendered to that State or sub-division or authority shall be
taxable only in that State. However, such pension shall be taxable only in the
other Contracting State if the individual is a resident of, and a national of
that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 19</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">GOVERNMENT SERVICE</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Remuneration, other
than a pension, paid by a Contracting State or an administrative territorial
sub-division or a local authority thereof to an individual in respect of
services rendered to that State or sub-division or authority shall be taxable
only in that State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. However, such
remuneration shall be taxable only in the other Contracting State if the
services are rendered in that State and the individual is a resident of that
State who :</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(i) is a national of
that State ; or</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(ii) did not become a
resident of that State solely for the purpose of rendering the
services.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The provisions of
Article 15, 16 and 18 of this Convention, shall apply to remuneration and
pensions in respect of services rendered in connection with a business carried
on by a Contracting State or an administrative territorial sub-divisional or a
local authority thereof.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 20</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">STUDENTS AND APPRENTICES</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. A student or
business apprentice who is or was resident of one of the Contracting State
immediately before visiting the other State solely for the purpose of his
education or training, shall be exempt from tax in that other State on
:-</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) payments made to him by
persons residing outside that other State for the purposes of his maintenance,
education or training; and </font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) remuneration from
employment in that State in an amount not exceeding US $ 500 during any "fiscal
year" provided that such employment is directly related to his studies or is
undertaken for the purpose of his maintenance.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The benefits of
this Article shall extend only for such period or time as may be reasonable or
academically or customarily required to complete the education or training
undertaken; but in no event shall any individual have the benefits of this
Article for more than four consecutive years from the date of his first arrival
in that other Contracting State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 21</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">PROFESSORS, TEACHERS AND RESEARCH SCHOLARS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. A professor or
teacher who is or was a resident of one of the Contracting States immediately
before visiting the other Contracting State for the purpose of teaching or
engaging in approved institution in that other Contracting State shall be exempt
from tax in that other State on any remuneration for such teaching or research
for a period not exceeding five years from the date of his arrival in that other
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. This Article shall
not apply to income from research if such research is undertaken primarily for
the private benefit of a specific person or persons.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. For the purpose of
this Article an individual shall be deemed to be a resident of a Contracting
State if he is resident in that Contracting State in the "income year" in which
he visits the other Contracting State or in the immediately preceding "income
year".</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. For the purpose of
paragraph 1, "approved institution" means an institution which has been approved
in this regard by the competent authority of the concerned Contracting
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 22</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">OTHER INCOME</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Items of income of
a resident of a Contracting State, wherever arising not dealt within the
foregoing Articles of this Convention, shall be taxable only in that
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The provisions of
paragraph 1 shall not apply to income other than income from immovable property
as defined in paragraph 2 of Article 6, if the recipient of such income, being a
resident of a Contracting State, carries on business in the other
Contracting State through a permanent establishment situated therein, or
performs in that other State independent personal services from a fixed base
situated therein and the right or property in respect of which the income is
paid is effectively connected with such permanent establishment or fixed base.
In such case, the provisions of Article 7 or Article 14 as the case may be,
shall apply.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 23</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ELIMINATION OF DOUBLE TAXATION</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Where a resident of
a Contracting State derives income in the other Contracting State which, in
accordance with the provisions of this Convention may be taxed in the other
Contracting State, the amount of tax on this income to be paid in the other
State shall allow as a deduction from tax on the income in the first mentioned
State. Such deduction shall not, however, exceed that part of tax as computed in
accordance with taxation laws of the first State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. For the purposes of
paragraphs 1 of this Article, tax payable in a Contracting State shall be deemed
to include any amount which would have been payable but for an exemption or
privilege according to which such amount is not payable under the incentive laws
of the respective Contracting State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. For the purpose of
paragraphs 1 and 2 of this Article, profits, income or gains derived by a
resident of one of the Contracting State which may be taxed in the other
contracting State in accordance with this convention shall be deemed to be
derived from or owned in that other Contracting State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 24</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">NON-DISCRIMINATION</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Nationals of a
Contracting State shall not be subjected in the other Contracting State to any
taxation or any requirement connected therewith, which is other or more
burdensome than the taxation and connected requirements to which nationals of
that other State in the same circumstances, in particular with respect to
residence, are or may be subjected. This provision shall, notwithstanding the
provisions of Article 1, also apply to persons who are not residents of one or
both of the Contracting States.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. Stateless persons
who are resident of the Contracting State shall not be subjected in either
Contracting State any taxation or any requirement connected therewith, which is
other or more burdensome than the taxation and connected requirement to which
nationals of the State concerned in the same circumstances are or may be
subjected;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px"><font face="Arial" size="2">Provided that the competent authorities of the respective
States shall certify that such stateless persons are not nationals of any other
State and qualify for the purpose of benefits of paragraphs 1 and 2 of this
Article.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The taxation on a
permanent establishment which an enterprise of a Contracting State has in the
other Contracting State shall not be less favourably levied in that other State
than the taxation levied on enterprises of that other State carrying on the same
activities under similar circumstances. This provision shall not be construed as
obliging a Contracting State to grant to residents of the other Contracting
State any personal allowances, reliefs and reductions for taxation purposes on
account of civil status or family responsibilities which it grants as its earn
residents.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. Except where the
provisions of paragraph 1 of Article 9, paragraph 6 of Article 11 or paragraph 6
of Article 12, apply, interest, royalties and other disbursements paid by an
enterprise of a Contracting State to a resident of the other Contracting State
shall, for the purposes of determining the taxable profits of such enterprise,
be deductible under the same conditions as if they had been paid to a resident
of the first-mentioned State. Any debts of an enterprise of a Contracting State
to a resident of the other Contracting State shall, for the purpose of
determining the taxable capital of such enterprise, be deductible according to
the respective laws of the Contracting States.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">5. Enterprises of a
Contracting State, the capital of which is wholly or partly owned or controlled,
directly or indirectly, by one or more residents of the other Contracting State,
shall not subjected in the first-mentioned Contracting State to any taxation or
any requirements connected therewith which is other or more burdensome than the
taxation and connected requirements to which other similar enterprises of that
first-mentioned State are or may be subjected.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 25</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">MUTUAL AGREEMENT PROCEDURE</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. Where a person
considers that the actions of one or both of the Contracting States result or
will result for him in taxation not in accordance with this Convention, he may,
irrespective of the remedies provided by the domestic law of those States,
present his case to the competent authority of the Contracting State of which he
is a resident or, if his case comes under paragraph 1 of Article 24, to that of
the Contracting State of which he is a national. The case must be presented
within three years of the date of first notification of the action resulting in
taxation not in accordance with the Convention.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The competent
authority shall endeavour, if the objection appears to it to be justified and if
it is not itself able to arrive at an appropriate solution, to resolve the case
by mutual agreement with the competent authority of the other Contracting State,
with a view to the avoidance of taxation not in accordance with the Convention.
Any agreement reached shall be implemented notwithstanding any time limits in
the domestic law of the Contracting States.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">3. The competent
authorities of the Contracting States shall endeavour to resolve by mutual
agreement any difficulties or doubts arising as to the interpretation or
application of the Convention. They may also consult together for the
elimination of double taxation in cases not provided for in the
Convention.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">4. The competent
authorities of the Contracting States may communicate with each other directly
for the purpose of reaching an agreement in the sense of the preceding
paragraphs. When it seems advisable in order to reach agreement to have an oral
exchange of opinions, such exchange may take place through a Commission
consisting of representatives of the competent authorities of the Contracting
State.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 26</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">EXCHANGE OF INFORMATION</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. The competent
authorities of the Contracting States shall exchange such information as is
necessary for carrying out the provisions of the Convention or of the domestic
laws of the Contacting States concerning taxes covered by the convention insofar
as the taxation thereunder is not contrary to the Convention. The exchange of
information is not restricted by Article 1. Any information received by a
Contracting State shall be treated as secret in the same manner as information
obtained under the domestic laws of that State and shall be disclosed only to
persons of authorities (including courts and administrative bodies) involved in
the assessment or collection of, the enforcement or prosecution in respect of or
the determination of appeals in relation to the taxes covered by the Convention.
Such persons or authorities shall use the information only for such purposes.
They may disclose the information in public court proceedings or in judicial
decisions.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. In no case shall
the provisions of paragraph 1 be construed so as to impose on a Contracting
State the obligation :</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(a) to carry out
administrative measures at variance with the laws or administrative practice of
that or of the other Contracting State;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(b) to supply information
which is not obtainable under the laws or in the normal course of the
administration of that or of the other Contracting State;</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px">
<font face="Arial" size="2">(c) to supply information
which would disclose any trade, business, industrial, commercial or professional
secret or trade process or information the disclosure of which would be contrary
to public policy (order public).</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 100px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 27</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">DIPLOMATIC AGENTS AND CONSULAR OFFICERS</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">Nothing in this convention shall affect the fiscal privileges of
diplomatic agents or consular officials under the general rules of international
law or under the provisions of special agreements.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 28</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">ENTRY INTO FORCE</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">1. This Convention
shall be ratified and the instruments of ratification shall be exchanged at
Islamabad/Baku as soon as possible.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px">
<font face="Arial" size="2">2. The Convention
shall enter into force upon the exchange of instruments of ratification and its
provisions shall have effect from the first day of the fiscal year following
that in which this Convention is ratified.</font></p>
<p align="justify" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"> </p>
<p align="center" style="MARGIN: 0px 20px 0px 60px; TEXT-INDENT: -40px"><b>
<font face="Arial" size="2">ARTICLE 29</font></b></p>
<p align="center" style="MARGIN: 0px 20px"><b><font face="Arial" size="2">TERMINATION</font></b></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">This Convention shall remain in force until terminated by a Contracting
State. Either Contracting State may terminate the Convention through diplomatic
channels, by giving notice of termination at least 6 months before the end of
any calendar year after the year 2000. In such event, the Convention shall cease
to have effect in respect of the income arising in any fiscal year beginning on
or after the first day of the fiscal year following that in which written notice
of termination is given.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2"><b>IN WITNESS WHEREOF </b>the undersigned, duly authorised thereto, by
their respective Governments have signed this Convention.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"><font face="Arial" size="2">Done in duplicate at Islamabad this ___________ day of April, 1996 in the
English and Azerbaijanian languages, each text being are equally authentic. In
case of divergence between the texts, the English text will prevail.</font></p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<p align="justify" style="MARGIN: 0px 20px"> </p>
<table border="0" cellpadding="0" cellspacing="0" width="100%">
<tbody>
<tr>
<td width="50%">
<p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">
<font color="#ffffff" face="Arial" size="2"><i>For the Government of the Islamic</i></font></p>
<p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">
<font color="#ffffff" face="Arial" size="2"><i>Republic of Pakistan</i></font></p></td>
<td width="50%">
<p align="right" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">
<font color="#ffffff" face="Arial" size="2"><i>For the Government of
the</i></font></p>
<p align="right" style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px">
<font color="#ffffff" face="Arial" size="2"><i>Azerbaijan Republic
</i></font></p></td></tr></tbody></table>
<p style="MARGIN-BOTTOM: 0px; MARGIN-TOP: 0px"> </p>
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