Income Tax Act

Agreement for the Allocation of Taxing Rights with respect to certain Income of Individuals and to establish a Mutual Agreement Procedure in respect of Transfer Pricing Adjustments (Australia) Regulations 2011

[GN 23 of 2011 – 12 February 2011] [Section 76]

1. These regulations may be cited as the Agreement for the Allocation of Taxing Rights with respect to certain Income of Individuals and to establish a Mutual Agreement Procedure in respect of Transfer Pricing Adjustments (Australia) Regulations 2011.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of Australia pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 31 May 2]

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of Australia,

Recognising that the two Governments have concluded an Agreement on the Exchange of Information with Respect to Taxes, and

Desiring to conclude an Agreement for the allocation of taxing rights with respect to certain income of individuals and to establish a mutual agreement procedure in respect of transfer pricing adjustments,

Have agreed as follows:

ARTICLE 1PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2TAXES COVERED

1. The existing taxes to which this Agreement shall apply are:

(a) in Australia, the income tax imposed under the federal law of Australia;

(hereinafter referred to as "Australian tax").

(b) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax").

2. This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other within a reasonable period of time of any substantial changes to the taxation laws covered by this Agreement.

3. This Agreement shall not apply to taxes imposed by states, municipalities, local authorities of other political subdivisions, or possessions of a Contracting State.

ARTICLE 3DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires:

(a) the term "Australia", when used in a geographical sense, excludes all external territories other than:

(i) the Territory of Norfolk Island;

(ii) the Territory of Christmas Island;

(iii) the Territory of Cocos (Keeling) Islands;

(iv) the Territory of Ashmore and Cartier Islands;

(v) the Territory of Heard Island and McDonald Islands; and

(vi) the Coral Sea Islands Territory,

and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the exclusive economic zone or the seabed and subsoil of the continental shelf;

(b) the term "Mauritius" means the Republic of Mauritius and includes;

(i) all the territories and islands which in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with the international law has been or may hereafter be designated under the laws of Mauritius as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised.

(c) the term "competent authority" means,

(i) in the case of Australia, the Commissioner of Taxation or an authorised representative of the Commissioner; and

(ii) in the case of Mauritius, the Director General of Mauritius Revenue Authority or an authorised representative of the Director General.

(d) the term "Contracting State" means Australia or Mauritius, as the context requires;

(e) the term '˜'national", in relation to a Contracting State, means any individual possessing the nationality or citizenship of that Contracting State;

(f) the term "person" includes an individual, a company and any other body of persons;

(g) the term "tax" means Australian tax or Mauritius tax, as the context requires; and

(h) the term "transfer pricing adjustment" means an adjustment made by the competent authority of a Contracting State to the profits of an enterprise as a result of applying the domestic law concerning taxes referred to in Article 2 of that State regarding transfer pricing.

2. As regards the application of this Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State, for the purposes of the taxes to which this Agreement applies, with any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4RESIDENT

1. For the purposes of this Agreement, the term "resident of a Contracting State" means:

(a) in the case of Australia, a person who is a resident of Australia for the purposes of Australian tax; and

(b) in the case of Mauritius, a person who, under the income tax law of Mauritius, is liable to tax therein by reason of his residence.

2. A person is not a resident of a Contracting State for the purposes of this Agreement if the person is liable to tax in that State in respect only of income from sources in that State.

3. Where by reason of the preceding provisions of this Article a person, being an individual, is a resident of both Contracting States, then the person's status shall be determined as follows:

(a) the individual shall be deemed to be a resident only of the State in which a permanent home is available to that individual; if a permanent home is available in both States, or in neither of them, that individual shall be deemed to be a resident only of the State with which the individual's personal and economic relations are closer (centre of vital interests);

(b) if the State in which the individual has their centre of vital interests cannot be determined, the individual shall be deemed to be a resident only of the State of which the individual is a national;

(c) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall endeavour to resolve the question by mutual agreement.

4. Where, by reason of paragraph 1, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

ARTICLE 5PENSIONS AND RETIREMENT ANNUITIES

1. Pensions (including government pensions) and retirement annuities paid to an individual who is a resident of a Contracting State shall be taxable only in that State. However, pensions and retirement annuities arising in a Contracting State may be taxed in that State where such income is not subject to tax in the other Contracting State.

2. The term "retirement annuity" means:

(a) in the case of Australia, a superannuation annuity payment within the meaning of the taxation laws of Australia;

(b) in the case of Mauritius, a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make the payment in return for adequate and full consideration in money or money's worth; and

(c) any other similar periodic payment agreed upon by the competent authorities.

ARTICLE 6GOVERNMENT SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a pension or retirement annuity, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. Notwithstanding the provisions of paragraph 1, Salaries, wages, and other, similar remuneration in respect of services rendered in connection with any trade, or business carried on by a Contracting State or a political subdivision or a local authority thereof may be taxed in accordance with the laws of a Contracting State.

ARTICLE 7STUDENTS

Payments which a student or business apprentice, who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is temporarily present in the first-mentioned State solely for the purpose of their education or training, receives for the purpose of their maintenance, education or training shall not be taxed in that State, provided such, payments arise from sources outside that State.

ARTICLE 8MUTUAL AGREEMENT PROCEDURE IN RESPECT OF TRANSFER PRICING ADJUSTMENTS

1. Where a resident of a Contracting State considers the actions of the other Contracting State results or will result in a transfer pricing adjustment not in accordance with the arm's length principle, the resident may, irrespective of the remedies provided by the domestic law of those States, present a case to the competent authority of the first-mentioned State. The case must be presented within 3 years of the first notification of the adjustment.

2. The competent authorities shall endeavour to resolve any difficulties or doubts arising as to the application of the arm's length principle by a Contracting State regarding transfer pricing adjustments. They may also communicate with each other directly for the purposes of this Article.

ARTICLE 9EXCHANGE OF INFORMATION

The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement. Information may be exchanged by the Competent authorities for the purposes of this Article in accordance with the provisions of the Agreement on the Exchange of Information with Respect to Taxes concluded by the Contracting States (whether or not this Agreement, in whole or in part, forms part of the domestic law of either Contracting State).

ARTICLE 10ENTRY INTO FORCE

The Government of Australia and the Government of the Republic of Mauritius shall notify each other, in writing through the diplomatic channel of the completion of their constitutional and legal procedures for the entry into force of this Agreement. This Agreement shall enter into force on the date of the last notification, and shall, provided an Agreement on the Exchange of Information with Respect to Taxes is in force between Australia and the Republic of Mauritius, thereupon have, effect:

(a) in respect of Australian tax, for any year of income beginning on or after 1 July in the calendar year next following the date on which this Agreement enters into force; and

(b) in respect of Mauritius tax, for any year of income beginning on or after 1 January in the calendar year next following the date on which this Agreement enters into force.

ARTICLE 11TERMINATION

1. This Agreement shall continue in effect indefinitely, but either of the Contracting States may, after the expiration of 3 years from the date of its entry into force, give to the other Contracting State through the diplomatic channel written notice of termination,

2. Such termination shall become effective:

(a) in respect of Australian tax, in the year of income beginning on or after 1 July in the calendar year next following that in which the notice of termination is given;

(b) in respect of Mauritius tax , in the year of income beginning on or after 1 January in the calendar year next following that in which the notice of termination is given.

3. Notwithstanding the provisions of paragraph 1 or 2, this Agreement shall, on receipt through the diplomatic channel of written notice of termination of the Agreement on the Exchange of Information with Respect to Taxes between the Contracting States, terminate and cease to be effective on the first day of the month following the expiration of a period of 6 months after the date of receipt of such notice.

IN WITNESS WHEREOF the undersigned, being duly authorised by their respective Governments, have signed this Agreement.

DONE at Port Louis, this 8th day of December, 2010, in duplicate in the English language, both texts being equally authentic.



Hon. Pravind Kumar JUGNAUTH



H. E. Mrs. Catherine JOHNSTONE

Vice-Prime Minister, Minister of Finance and Economic Development High Commissioner
FOR THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS FOR THE GOVERNMENT OF AUSTRALIA

________________

Agreement on the Exchange of Information with respect to Taxes (Australia) Regulations 2011

[GN 21 of 2011 – 5 February 2011] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Australia) Regulations 2011.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of Australia pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. on 25 November 2012.]

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of Australia,

Desiring to facilitate the exchange of information with respect to taxes,

Have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THIS AGREEMENT

The Competent authorities of the Contracting States shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of those States concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the Requested State remain applicable. The Requested State will use its best endeavours to ensure that any such rights and safeguards are not applied in a manner that unduly prevents or delays effective exchange of information.

ARTICLE 2 – JURISDICTION

A Requested State is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. The existing taxes which are the subject of this Agreement are:

(a) in Australia, taxes of every kind and description imposed under federal laws administered by the Commissioner of Taxation; and

(b) in Mauritius, taxes of every kind and description administered by the Director General of Mauritius Revenue Authority.

2. This Agreement shall also apply to any identical or substantially similar taxes imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The Agreement shall also apply to such other taxes as may be agreed in an exchange of letters between the Contracting States. The competent authorities of the Contracting States shall notify each other of any substantial changes to the taxation and related information gathering measures covered by this Agreement.

3. This Agreement shall not apply to taxes imposed by states, municipalities, or other political subdivisions, or possessions of a Contracting State.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Applicant State" means the Contracting State requesting information;

(b) the term "Australia", when used in a geographical sense, excludes all external territories other than:

(i) the Territory of Norfolk Island;

(ii) the Territory of Christmas Island;

(iii) the Territory of Cocos (Keeling) Islands;

(iv) the Territory of Ashmore and Cartier Islands;

(v) the Territory of Heard Island and McDonald Islands; and

(vi) the Coral Sea Islands Territory,

and includes any area adjacent to the territorial limits of Australia (including the Territories specified in this subparagraph) in respect of which there is for the time being in force, consistently with international law, a law of Australia dealing with the exploration for or exploitation of any of the natural resources of the exclusive economic zone or the seabed and subsoil of the continental shelf;

(c) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(d) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(e) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(f) the term "competent authority" means –

(i) in the case of Australia, the Commissioner of Taxation or an authorised representative of the Commissioner; and

(ii) in the case of Mauritius, the Director General of Mauritius Revenue Authority or an authorised representative of the Director General.

(g) the term "Contracting State" means Australia or the Republic of Mauritius, as the context requires;

(h) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes;

(i) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the Applicant State;

(j) the term "information" means any fact, statement or record in any form whatever;

(k) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting State to obtain and provide the requested information;

(l) the term '˜'person'' includes an individual, a company and any other body of persons;

(m) the term "principal class of shares'' means the class or classes of shares representing a majority of the voting power and value of the company;

(n) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(o) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(p) the term "Requested State" means the Contracting State requested to provide information; and

(q) the term "tax" means any tax to which this Agreement applies.

2. As regards the application of this Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the Requested State shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the Requested State if such conduct occurred in the Requested State.

2. If the information in the possession of the competent authority of the Requested State is not sufficient to enable it to comply with the request for information, that State shall use all relevant information gathering measures to provide the Applicant State with the information requested, notwithstanding that the Requested State may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an Applicant State, the competent authority of the Requested State shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting State shall ensure that its competent authority for the purposes specified in Article 1 of this Agreement, has the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations, "Anstalten" and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees, beneficiaries and protectors; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the Applicant State shall provide the following information to the competent authority of the Requested State when making a request for information under this Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the Applicant State wishes to receive the information from the Requested State;

(c) the tax purpose for which the information is sought;

(d) the grounds for believing that the information requested is held in the Requested State or is in the possession or control of a person within the jurisdiction of the Requested State;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the Applicant State, that if the requested information was within the jurisdiction of the Applicant State then the competent authority of the Applicant State would be able to obtain the information under the laws of the Applicant State or in the normal course of administrative practice and that the information request is in conformity with this Agreement; and

(g) a statement that the Applicant State has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the Requested State shall forward the requested information as promptly as possible to the Applicant State. To ensure a prompt response, the competent authority of the Requested State shall:

(a) confirm receipt of a request in writing to the competent authority of the Applicant State and shall notify the competent authority of the Applicant State of deficiencies in the request, if any, within 60 days of the receipt of the request; and

(b) if the competent authority of the Requested State has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the Applicant State, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting State may allow representatives of the competent authority of the other Contracting State to enter the territory of the first-mentioned State to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned State shall notify the competent authority of the first-mentioned State of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one of the Contracting States, the competent authority of the other Contracting State may allow representatives of the competent authority of the first-mentioned State to be present at the appropriate part of a tax examination in the second-mentioned State.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting State conducting the examination shall, as soon as possible, notify the competent authority of the other State about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned State for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the State conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The Requested State shall not be required to obtain or provide information that the Applicant State would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the Requested State may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting State the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in paragraph 4 of Article 5 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting State the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The Requested State may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed by the taxpayer.

6. The Requested State may decline a request for information if the information is requested by the Applicant State to administer or enforce a provision of the tax law of the Applicant State, or any requirement connected therewith, which discriminates against a national of the Requested State as compared with a national of the Applicant State in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting State under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting State concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of judicial review or appeals in relation to, the taxes covered by this Agreement. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the Requested State.

ARTICLE 9 – COSTS

Unless the competent authorities of the Contracting States otherwise agree, ordinary costs incurred in providing assistance shall be borne by the Requested State, and extraordinary costs incurred in providing assistance (including reasonable costs of engaging external advisors in connection with litigation or otherwise) shall be borne by the Applicant State. At the request of either Contracting State, the competent authorities shall consult as necessary with regard to this Article, and in particular the competent authority of the Requested State shall consult with the competent authority of the Applicant State in advance if the costs of providing information with respect to a specific request are expected to be significant.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting States shall enact any legislation necessary to comply with, and give effect to, the terms of this Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. The competent authorities of the Contracting States shall jointly endeavour to resolve any difficulties or doubts arising as to the interpretation or application of this Agreement.

2. In addition to the endeavours referred to in paragraph 1, the competent authorities of the Contracting States may mutually determine the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting States may communicate with each other directly for the purposes of this Article.

4. The Contracting States may also agree on other forms of dispute resolution.

ARTICLE 12 – ENTRY INTO FORCE

1. The Government of Australia and the Government of the Republic of Mauritius shall notify each other in writing through the diplomatic channel of the completion of their constitutional and legal procedures for the entry into force of this Agreement. This Agreement shall enter into force on the date of the last notification, and shall thereupon have effect:

(a) from 1 January 2011 with respect to criminal tax matters relating to taxable periods beginning on or after 1 January 2011 or, where there is no taxable period, all charges to tax arising on or after 1 January 2011; and

(b) from 1 January 2011 with respect to all other matters covered in Article 1 relating to taxable periods beginning on or after 1 January 2011, or where there is no taxable period, all charges to tax arising on or after 1 January 2011.

2. The provisions of this Agreement shall apply in their terms to information predating the coming into force of this Agreement.

ARTICLE 13 – TERMINATION

1. This Agreement shall continue in effect indefinitely, but either of the Contracting States may, after the expiration of 3 years from the date of its entry into force, give to the other Contracting State through the diplomatic channel written notice of termination.

2. Such termination shall become effective on the first day of the month following the expiration of a period of 6 months after the date of receipt of notice of termination by the other Contracting State.

3. Notwithstanding any termination of this Agreement, the Contracting States shall remain bound by the provisions of Article 8 with respect to any information obtained under this Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto by their respective Governments, have signed this Agreement.

DONE at Port Louis this 8th day of December, 2010, in duplicate in the English language.



Hon. Pravind Kumar JUGNAUTH

Vice-Prime Minister, Minister of Finance and Economic Development
FOR THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS



H. E. Mrs. Catherine JOHNSTONE

High Commissioner
FOR THE GOVERNMENT OF AUSTRALIA

_______________

Agreement on the Exchange of Information with respect to Taxes (Greenland) Regulations 2012

[GN 36 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Greenland) Regulations 2012.

2. In these regulations –

"Act " means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of Greenland pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on such date as may be specified by the Minister in a notice to be published in the Gazette.

_______________

 

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of Greenland,

• desiring to conclude an Agreement concerning information on tax matters;

• considering that the Government of Greenland concludes this agreement on behalf of the Kingdom of Denmark pursuant to the Act on Greenland Self-Government,

have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by the Contracting Parties.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means Greenland or Mauritius as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "Greenland" means the landmass of Greenland and its territorial waters and any area outside the territorial waters where Denmark or Greenland according to domestic legislation and in accordance with international law, may exercise its rights with respect to the seabed and subsoil and their natural resources;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or the Minister's authorised representative;

(ii) in Greenland, the Minister of Finance or his delegate;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contracting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal coursey of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect:

(a) for criminal tax matters, on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after that date.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon H. E. Mrs. Kristina Miskowiak Beckvard

Ambassador Minister Counsellor

For the Government of the Royal Danish Embassy
Republic of Mauritius for the Government of Greenland

_______________

Agreement on the Exchange of Information with respect to Taxes (Iceland) Regulations 2012

[GN 37 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Iceland) Regulations 2012.

2. In these regulations

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of Iceland pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on such date as may be specified by the Minister in a notice to be published in the Gazette.

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of Iceland, desiring to conclude an Agreement concerning information on tax matters, have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by the Contracting Parties.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means Iceland or Mauritius as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "Iceland" means Iceland and, when used in a geographical sense, means the territory of Iceland, including its territorial sea, and any area beyond the territorial sea within which Iceland, in accordance with international law, exercises jurisdiction or sovereign rights with respect to the sea bed, its subsoil and its superjacent waters, and their natural resources;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or the Minister's authorised representative;

(ii) in Iceland, the Minister of Finance or the Minister's authorised representative;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contracting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing through diplomatic channels of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect:

(a) for criminal tax matters, on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after the first day of January of the year next following the date on which the Agreement enters into force.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice through diplomatic channels of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In Witness Whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon H. E. Mr. Berglind Asgeirsdottir

Ambassador Ambassador

For the Government of the For the Government of Iceland
Republic of Mauritius

_______________

Agreement on the Exchange of Information with respect
to Taxes (Kingdom of Denmark) Regulations 2012

[GN 33 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Kingdom of Denmark) Regulations 2012.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Kingdom of Denmark pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 1 June 2012.]

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the Kingdom of Denmark, desiring to conclude an Agreement concerning information on tax matters, have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by the Contracting Parties.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means Denmark or Mauritius as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "Denmark" means the Kingdom of Denmark including any area outside the territorial sea of Denmark which in accordance with international law has been or may hereafter be designated under Danish laws as an area within which Denmark may exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed or its subsoil and the superjacent waters and with respect to other activities for the exploration and economic exploitation of the area; the term does not comprise the Faroe Islands and Greenland;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or his authorised representative;

(ii) in Denmark, the Minister for Taxation or his authorized representative;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contracting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of any applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect

(a) for criminal tax matters on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after that date.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December of 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon

H. E. Mrs. Kristina Miskowiak Beckvard

Ambassador

 

Minister Counsellor

 

For the Government of the
Republic of Mauritius

For the Government of the
Grand Duchy of Luxembourg

______________

Agreement on the Exchange of Information with respect to Taxes (Kingdom of Norway) Regulations 2012

[GN 38 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Kingdom of Norway) Regulations 2012.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Kingdom of Norway pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 26 May 2012.]

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the Kingdom of Norway desiring to conclude an Agreement concerning information on tax matters, have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by the Contracting Parties.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means Norway or Mauritius as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "Norway" means the Kingdom of Norway, and includes the land territory and internal waters, the territorial sea and the area beyond the territorial sea where the Kingdom of Norway, according to Norwegian legislation and in accordance with international law, may exercise her rights with respect to the seabed and subsoil and their natural resources; the term does not comprise Svalbard, Jan Mayen and the Norwegian dependencies ("biland");

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or the Minister's authorised representative;

(ii) in Norway, the Minister of Finance or the Minister's authorised representative;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contracting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing through diplomatic channels of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect

(a) for criminal tax matters, on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after that date.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice through diplomatic channels of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon H. E. Mr. Tarald Brautaset

Ambassador Ambassador

For the Government of the For the Government of the
Republic of Mauritius Kingdom of Norway

_______________

Agreement on the Exchange of Information with respect
to Taxes (Republic of Finland) Regulations 2012

[GN 35 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (Republic of Finland) Regulations 2012.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Republic of Finland pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 6 July 2012.]

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Finland and the Government of the Republic of Mauritius, desiring to conclude an Agreement concerning information on tax matters, have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control of persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by a Contracting Party or its local authorities.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and related information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means Finland or Mauritius, as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "Finland" means the Republic of Finland and, when used in a geographical sense, means the territory of the Republic of Finland, and any area adjacent to the territorial waters of the Republic of Finland within which, under the laws of Finland and in accordance with international law, the rights of Finland with respect to the exploration for and exploitation of the natural resources of the sea bed and its subsoil and of the superjacent waters may be exercised;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or his authorised representative;

(ii) in Finland, the Ministry of Finance, its authorised representative or the authority which, by the Ministry of Finance, is designated as competent authority;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contacting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures' means laws and administrative or judicial procedures that enable Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of this Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing through diplomatic channels of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect

(a) for criminal tax matters on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after the first day of January of the year next following the date on which the Agreement enters into force.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice through diplomatic channels of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon H. E. Mrs. Pilvi-Sisko

Ambassador Vierros-Villeneuve

For the Government of the For the Government of the
Republic of Mauritius Republic of Finland

_______________

Agreement on Exchange of Information with respect to Taxes (States of Guernsey)
Regulations 2013

[GN 73 of 2013 – 6 April 2013] [Section 76]

1. These regulations may be cited as the Agreement on Exchange of Information with respect to Taxes (States of Guernsey) Regulations 2013.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the States of Guernsey pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 5 July 2013.]

_______________

SCHEDULE

[Regulation 2]

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS AND THE STATES OF GUERNSEY ON EXCHANGE OF INFORMATION ON TAX MATTERS

WHEREAS it is acknowledged that the States of Guernsey has the right, under the terms of the Entrustment from the United Kingdom of Great Britain and Northern Ireland, to negotiate, conclude, perform and, subject to the terms of this Agreement, terminate a tax information exchange agreement with the Republic of Mauritius;

WHEREAS the Parties wish to enhance and facilitate the terms and conditions governing the exchange of information relating to taxes;

NOW, therefore, the Parties have agreed to conclude the following Agreement which contains obligations on the part of the Parties only:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The Parties, through their competent authorities, shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Parties concerning taxes covered by this Agreement, including information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation of tax matters or the prosecution of criminal tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable. The requested Party shall use its best endeavours to ensure that the effective exchange of information is not unduly prevented or delayed.

ARTICLE 2 – JURISDICTION

A requested Party is not obligated to provide information which is neither held by its authorities nor in the possession of or obtainable by persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. The taxes which are the subject of this Agreement are:

(a) in Guernsey:

(i) income tax;

(ii) dwellings profits tax;

(b) in Mauritius, the income tax.

2. This Agreement shall also apply to any identical taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. This Agreement shall also apply to any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes if the Parties so agree. Furthermore, the taxes covered may be expanded or modified by mutual agreement of the Parties in the form of an exchange of letters. The competent authorities of the Parties shall notify each other of any substantial changes to their taxation and related information gathering measures which may affect their obligations pursuant to the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) "Guernsey" means the States of Guernsey and when used in a geographical context, means Guernsey, Alderney and Herm, including the territorial sea adjacent to those islands, in accordance with international law;

(b) "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(d) "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(e) "competent authority" means:

(i) in the case of Guernsey, the Director of Income Tax or his authorised representative;

(ii) in the case of Mauritius, the Director-General of the Mauritius Revenue Authority or his authorised representative;

(f) "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the criminal code or other statutes;

(g) "criminal tax matters" means tax matters involving intentional conduct, which is liable to prosecution under the criminal laws of the requesting Party;

(h) "information" means any fact, statement, document or record in any form whatever;

(i) "information gathering measures" means laws and administrative or judicial procedures that enable a requested Party to obtain and provide the requested information;

(j) "Parties" means Guernsey or Mauritius, as the context requires;

(k) "person" includes an individual, a company and any other body of persons;

(l) "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(m) "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(n) "recognised stock exchange" means the Channel Islands Stock Exchange, The Stock Exchange of Mauritius Ltd and any other stock exchange agreed upon by the competent authorities of the Parties;

(o) "requested Party" means the Party requested to provide or which has provided information in response to a request;

(p) "requesting Party" means the Party submitting a request for or having received information from the requested Party;

(q) "tax" means any tax to which the Agreement applies.

2. As regards the application of this Agreement at any time by a Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Part prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the requested Party needs such information for its own tax purposes or the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct had occurred in the territory of the requested Party. The competent authority of the requesting Party shall only make a request for information pursuant to this Article when it is unable to obtain the requested information by other means within its own territory, except where recourse to such means would give rise to disproportionate difficulty.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures necessary to provide the requesting Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of the requesting Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Party shall ensure that its competent authority has the authority for the purposes specified in Article 1, and within the limitations of Article 2, to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person, including nominees and trustees, acting in an agency or fiduciary capacity;

(b) (i) information regarding the ownership of companies, partnerships, foundations, and other persons, including ownership information on all such persons in an ownership chain;

(ii) in the case of trusts, information on settlors, trustees, protectors, enforcers and beneficiaries; and

(iii) in the case of foundations, information on founders, members of the foundation council and beneficiaries:

Provided that this Agreement does not create an obligation on the Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. Any request for information shall be formulated with the greatest detail possible and shall specify in writing:

(a) the identity of the person under examination of investigation;

(b) the period for which the information is sought;

(c) the nature of the information sought and the form in which the requesting Party wishes to receive it;

(d) the reasons for believing that the information requested foreseeably relevant to tax administration and enforcement of the requesting Party, with respect to the person identified in subparagraph (a) of this paragraph;

(e) the tax purpose for which the information is sought;

(f) the grounds for believing that the information requested is held in the requested Party or is in the possession or obtainable by a person within the jurisdiction of the requested Party;

(g) to the extent known, the name and address of any person believed to be in possession of or able to obtain the requested information;

(h) a statement that the request is in conformity with the law and administrative practices of the requesting Party, that if the requested information was within the jurisdiction of the requesting Party then the competent authority of the requesting Party would be able to obtain the information under the laws of the requesting Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(i) a statement that the requesting Party has pursued all means available in its own territory to obtain the information, except where that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the requesting Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the requesting Party and shall notify the competent authority of the requesting Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the complete request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the requesting Party, explaining the reasons for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. With reasonable notice, a Party may allow representatives of the competent authority of the other Party, to the extent permitted under its domestic laws, to enter the territory of the first-mentioned Party, to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Party, and in accordance with its domestic laws, the competent authority of the other Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The competent authority of the requested Party may decline to assist:

(a) where the request is not made in conformity with this Agreement;

(b) where the requesting Party has not pursued all means available in its own territory to obtain the information except where recourse to such means would give rise to disproportionate difficulties; or

(c) where the disclosure of the information requested would be contrary to public policy.

2. This Agreement shall not impose on a Party the obligation to supply items subject to legal privilege or information which would disclose any trade, business, industrial, commercial or professional secret or trade process, provided that information of the type referred to in Article 5, paragraph 4 shall not by reason of that fact alone be treated as such a secret or trade process.

3. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

4. The requested Party shall not be required to obtain or provide information which, if the requested information was within the jurisdiction of the requesting Party, the competent authority of the requesting Party would not be able to obtain under its own laws for the purposes of the administration and enforcement of its own tax laws.

5. The requested Party may decline a request for information if the information is requested by the requesting Party to administer or enforce a provision of the tax law of the requesting Party, or any requirement connected therewith, which discriminates against a citizen of the requested Party as compared with a citizen of the requesting Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

1. All information provided and received by the competent authorities of the Parties shall be kept confidential.

2. Such information shall be disclosed only to persons or authorities (including Courts and administrative bodies) concerned with the purposes specified in Article 1, and used by such persons or authorities only for such purposes, including the determination of any appeal. For these purposes, information may be disclosed in public Court proceedings or in judicial decisions.

3. Such information may not be used for any purpose other than for the purposes stated in Article 1 without the express written consent of the competent authority of the requested Party.

4. Information provided to a requesting Party under this Agreement may not be disclosed to any other jurisdiction.

ARTICLE 9 – COSTS

Unless the competent authorities of the Parties otherwise agree, indirect costs incurred in providing assistance shall be borne by the requested Party, and direct costs incurred in providing assistance (including costs of engaging external advisors in connection with litigation or otherwise) shall be borne by the requesting Party. The respective competent authorities shall consult from time to time with regard to this Article, and in particular the competent authority of the requested Party shall consult with the competent authority of the requesting Party in advance if the costs of providing information with respect to a specific request are expected to be significant.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Parties regarding the implementation or interpretation of the Agreement, the competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Parties may mutually agree on the procedures to be used under Articles 5, 6 and 9.

3. The competent authorities of the Parties may communicate with each other directly for purposes of reaching agreement under this Article.

4. The Parties may also agree on other forms of dispute resolution.

ARTICLE 12 – ENTRY INTO FORCE

1. This Agreement is subject to ratification, acceptance or approval by the Parties, in accordance with their respective laws.

2. The Parties shall notify each other, in writing, through the appropriate channel of the completion of their constitutional and legal procedures for the entry into force of this Agreement. This Agreement shall enter into force on the date of the last notification and shall thereupon have effect in respect of taxable periods beginning on or after that date or, where there is no taxable period, all charges to tax arising on or after that date.

ARTICLE 13 – TERMINATION

1. Either Party may terminate the Agreement by serving a notice of termination either through appropriate channels or by letter to the competent authority of the other Party.

2. Such termination shall become effective on the first day of the month following the expiration of a period of 6 months after the date of receipt of notice of termination by the other Party.

3. All requests received up to the effective date of termination will be dealt with in accordance with the terms of this Agreement.

4. If the Agreement is terminated, the Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed this Agreement in London, on this 6th day of February of the year of 2013, in 2 originals, in the English language.

H. E. Mr. A. Kundasamy
High Commissioner

Deputy P. A. HarwoodChief Minister
Chief Minister

For the Government of the Republic of Mauritius For the States of Guernsey

_______________

Agreement on the Exchange of Information with respect to Taxes (the Faroes) Regulations 2012

[GN 34 of 2012 – 17 March 2012] [Section 76]

1. These regulations may be cited as the Agreement on the Exchange of Information with respect to Taxes (the Faroes) Regulations 2012.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Faroes pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on such date as may be specified by the Minister in a notice to be published in the Gazette.

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the Faroes,

• desiring to conclude an Agreement concerning information on tax matters;

• considering that the Government of the Faroes concludes this agreement on behalf of the Kingdom of Denmark pursuant to the Act on the Conclusion of Agreements under International Law by the Government of the Faroes,

have agreed as follows:

ARTICLE 1 – OBJECT AND SCOPE OF THE AGREEMENT

The competent authorities of the Contracting Parties shall provide assistance through exchange of information that is foreseeably relevant to the administration and enforcement of the domestic laws of the Contracting Parties concerning taxes covered by this Agreement. Such information shall include information that is foreseeably relevant to the determination, assessment and collection of such taxes, the recovery and enforcement of tax claims, or the investigation or prosecution of tax matters. Information shall be exchanged in accordance with the provisions of this Agreement and shall be treated as confidential in the manner provided in Article 8. The rights and safeguards secured to persons by the laws or administrative practice of the requested Party remain applicable to the extent that they do not unduly prevent or delay effective exchange of information.

ARTICLE 2 – JURISDICTION

A Requested Party is not obligated to provide information which is neither held by its authorities nor in the possession or control or persons who are within its territorial jurisdiction.

ARTICLE 3 – TAXES COVERED

1. This Agreement shall apply to taxes of every kind and description imposed by the Contracting Parties.

2. This Agreement shall also apply to any identical or any substantially similar taxes imposed after the date of signature of the Agreement in addition to or in place of the existing taxes. The competent authorities of the Contracting Parties shall notify each other of any substantial changes to the taxation and relate information gathering measures covered by the Agreement.

ARTICLE 4 – DEFINITIONS

1. For the purposes of this Agreement, unless otherwise defined:

(a) the term "Contracting Party" means the Faroes or Mauritius as the context requires;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "the Faroes" means the landmass of the Faroes and their territorial waters and any area outside the territorial waters where the Faroes according to Faroese legislation and in accordance with international law, may exercise rights with respect to the seabed and subsoil and their natural resources;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or the Minister's authorised representative;

(ii) in the Faroes, the Minister of Finance or his authorised representative or the authority which is designated as a competent authority for the purpose of this Agreement;

(e) the term "person" includes an individual, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity that is treated as a body corporate for tax purposes;

(g) the term "publicly traded company" means any company whose principal class of shares is listed on a recognised stock exchange provided its listed shares can be readily purchased or sold by the public. Shares can be purchased or sold "by the public" if the purchase or sale of shares is not implicitly or explicitly restricted to a limited group of investors;

(h) the term "principal class of shares" means the class or classes of shares representing a majority of the voting power and value of the company;

(i) the term "recognised stock exchange" means any stock exchange agreed upon by the competent authorities of the Contracting Parties;

(j) the term "collective investment fund or scheme" means any pooled investment vehicle, irrespective of legal form. The term "public collective investment fund or scheme" means any collective investment fund or scheme provided the units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed by the public. Units, shares or other interests in the fund or scheme can be readily purchased, sold or redeemed "by the public" if the purchase, sale or redemption is not implicitly or explicitly restricted to a limited group of investors;

(k) the term "tax" means any tax to which the Agreement applies;

(l) the term "applicant Party" means the Contracting Party requesting information;

(m) the term "requested Party" means the Contracting Party requested to provide information;

(n) the term "information gathering measures" means laws and administrative or judicial procedures that enable a Contracting Party to obtain and provide the requested information;

(o) the term "information" means any fact, statement or record in any form whatever;

(p) the term "criminal tax matters" means tax matters involving intentional conduct which is liable to prosecution under the criminal laws of the applicant party;

(q) the term "criminal laws" means all criminal laws designated as such under domestic law irrespective of whether contained in the tax laws, the Criminal Code or other statutes.

2. As regards the application of this Agreement at any time by a Contracting Party, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that Party, any meaning under the applicable tax laws of that Party prevailing over a meaning given to the term under other laws of that Party.

ARTICLE 5 – EXCHANGE OF INFORMATION UPON REQUEST

1. The competent authority of the requested Party shall provide upon request information for the purposes referred to in Article 1. Such information shall be exchanged without regard to whether the conduct being investigated would constitute a crime under the laws of the requested Party if such conduct occurred in the requested Party.

2. If the information in the possession of the competent authority of the requested Party is not sufficient to enable it to comply with the request for information, that Party shall use all relevant information gathering measures to provide the applicant Party with the information requested, notwithstanding that the requested Party may not need such information for its own tax purposes.

3. If specifically requested by the competent authority of an applicant Party, the competent authority of the requested Party shall provide information under this Article, to the extent allowable under its domestic laws, in the form of depositions of witnesses and authenticated copies of original records.

4. Each Contracting Party shall ensure that its competent authorities for the purposes specified in Article 1 of the Agreement, have the authority to obtain and provide upon request:

(a) information held by banks, other financial institutions, and any person acting in an agency or fiduciary capacity including nominees and trustees;

(b) information regarding the ownership of companies, partnerships, trusts, foundations and other persons, including, within the constraints of Article 2, ownership information on all such persons in an ownership chain; in the case of trusts, information on settlors, trustees and beneficiaries; and in the case of foundations, information on founders, members of the foundation council and beneficiaries. Further, this Agreement does not create an obligation on the Contracting Parties to obtain or provide ownership information with respect to publicly traded companies or public collective investment funds or schemes unless such information can be obtained without giving rise to disproportionate difficulties.

5. The competent authority of the applicant Party shall provide the following information to the competent authority of the requested Party when making a request for information under the Agreement to demonstrate the foreseeable relevance of the information to the request:

(a) the identity of the person under examination or investigation;

(b) a statement of the information sought including its nature and the form in which the applicant Party wishes to receive the information from the requested Party;

(c) the tax purpose for which the information is sought;

(d) grounds for believing that the information requested is held in the requested Party or is in the possession or control of a person within the jurisdiction of the requested Party;

(e) to the extent known, the name and address of any person believed to be in possession of the requested information;

(f) a statement that the request is in conformity with the law and administrative practices of the applicant Party, that if the requested information was within the jurisdiction of the applicant Party then the competent authority of the applicant Party would be able to obtain the information under the laws of the applicant Party or in the normal course of administrative practice and that it is in conformity with this Agreement;

(g) a statement that the applicant Party has pursued all means available in its own territory to obtain the information, except those that would give rise to disproportionate difficulties.

6. The competent authority of the requested Party shall forward the requested information as promptly as possible to the applicant Party. To ensure a prompt response, the competent authority of the requested Party shall:

(a) confirm receipt of a request in writing to the competent authority of the applicant Party and shall notify the competent authority of the applicant Party of deficiencies in the request, if any, within 60 days of the receipt of the request;

(b) if the competent authority of the requested Party has been unable to obtain and provide the information within 90 days of receipt of the request, including if it encounters obstacles in furnishing the information or it refuses to furnish the information, it shall immediately inform the applicant Party, explaining the reason for its inability, the nature of the obstacles or the reasons for its refusal.

ARTICLE 6 – TAX EXAMINATIONS ABROAD

1. A Contracting Party may allow representatives of the competent authority of the other Contracting Party to enter the territory of the first-mentioned Party to interview individuals and examine records with the written consent of the persons concerned. The competent authority of the second-mentioned Party shall notify the competent authority of the first-mentioned Party of the time and place of the meeting with the individuals concerned.

2. At the request of the competent authority of one Contracting Party, the competent authority of the other Contracting Party may allow representatives of the competent authority of the first-mentioned Party to be present at the appropriate part of a tax examination in the second-mentioned Party.

3. If the request referred to in paragraph 2 is acceded to, the competent authority of the Contracting Party conducting the examination shall, as soon as possible, notify the competent authority of the other Party about the time and place of the examination, the authority or official designated to carry out the examination and the procedures and conditions required by the first-mentioned Party for the conduct of the examination. All decisions with respect to the conduct of the tax examination shall be made by the Party conducting the examination.

ARTICLE 7 – POSSIBILITY OF DECLINING A REQUEST

1. The requested Party shall not be required to obtain or provide information that the applicant Party would not be able to obtain under its own laws for purposes of the administration or enforcement of its own tax laws. The competent authority of the requested Party may decline to assist where the request is not made in conformity with this Agreement.

2. The provisions of this Agreement shall not impose on a Contracting Party the obligation to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process. Notwithstanding the foregoing, information of the type referred to in Article 5, paragraph 4 shall not be treated as such a secret or trade process merely because it meets the criteria in that paragraph.

3. The provisions of this Agreement shall not impose on a Contracting Party the obligation to obtain or provide information, which would reveal confidential communications between a client and an attorney, solicitor or other admitted legal representative where such communications are:

(a) produced for the purposes of seeking or providing legal advice; or

(b) produced for the purposes of use in existing or contemplated legal proceedings.

4. The requested Party may decline a request for information if the disclosure of the information would be contrary to public policy (ordre public).

5. A request for information shall not be refused on the ground that the tax claim giving rise to the request is disputed.

6. The requested Party may decline a request for information if the information is requested by the applicant Party to administer or enforce a provision of the tax law of the applicant Party, or any requirement connected therewith, which discriminates against a national of the requested Party as compared with a national of the applicant Party in the same circumstances.

ARTICLE 8 – CONFIDENTIALITY

Any information received by a Contracting Party under this Agreement shall be treated as confidential and may be disclosed only to persons or authorities (including courts and administrative bodies) in the jurisdiction of the Contracting Party concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals or applications for judicial review in relation to, the taxes imposed by a Contracting Party. Such persons or authorities shall use such information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. The information may not be disclosed to any other person or entity or authority or any other jurisdiction without the express written consent of the competent authority of the requested Party.

ARTICLE 9 – COSTS

Incidence of costs incurred in providing assistance shall be agreed by the Contracting Parties.

ARTICLE 10 – IMPLEMENTATION LEGISLATION

The Contracting Parties shall enact any legislation necessary to comply with, and give effect to, the terms of the Agreement.

ARTICLE 11 – MUTUAL AGREEMENT PROCEDURE

1. Where difficulties or doubts arise between the Contracting Parties regarding the implementation or interpretation of this Agreement, the respective competent authorities shall endeavour to resolve the matter by mutual agreement.

2. In addition to the agreements referred to in paragraph 1, the competent authorities of the Contracting Parties may mutually agree on the procedures to be used under Articles 5 and 6.

3. The competent authorities of the Contracting Parties may communicate with each other directly for purposes of reaching agreement under this Article.

ARTICLE 12 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify the other in writing of the completion of the procedures required by its law for the entry into force of this Agreement.

2. The Agreement shall enter into force on the thirtieth day after the receipt of the later of these notifications and shall thereupon have effect

(a) for criminal tax matters, on that date;

(b) for all other matters covered in Article 1, for taxable periods beginning on or after the first day of January of the year next following the date on which the Agreement enters into force, or where there is no taxable period, for all charges to tax arising on or after that date.

ARTICLE 13 – TERMINATION

1. This Agreement shall remain in force until terminated by a Contracting Party. Either Contracting Party may terminate the Agreement by giving written notice of termination to the other Contracting Party. In such case, the Agreement shall cease to have effect on the first day of the month following the end of the period of six months after the date of receipt of notice of termination by the other Contracting Party.

2. In the event of termination, both Contracting Parties shall remain bound by the provisions of Article 8 with respect to any information obtained under the Agreement.

In witness whereof the undersigned being duly authorised thereto have signed the Agreement.

Done at Paris this 1st day of December 2011, in duplicate in the English language.

H. E. Mr. Jacques Chasteau de Balyon

H. E. Mr. Jakub Eyofinn Kjaerbo

Ambassador

 For the Government of the
Republic of Mauritius

 

 

For the Government of the Faroes

 

______________

Double Taxation Agreement (Government of the People's Republic of China) Regulations 1994

[GN 158 of 1994 – 3 September 1994] [Section 137]

1. These regulations may be cited as the Double Taxation Agreement (Government of the People's Republic of China) Regulations 1994.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the People's Republic of China pursuant to section 83 of the Act and set out in the First Schedule as amended by the Protocol set out in the Second Schedule.

[Reg. 2 amended by reg. 3 of GN 3 of 2007 w.e.f 13 January 2007.]

3.

[Agreement c.i.o. 5 May 1995.]

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FIRST SCHEDULE

[Regulation 2]

AGREEMENT

between the

Government of the People's Republic of China

and the

Government of the Republic of Mauritius

for the

Avoidance of Double Taxation

and the

Prevention of Fiscal Evasion with Respect

to

Taxes on Income

The Government of the Republic of Mauritius and the Government of the
People's Republic of China,

DESIRING to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.

3. The existing taxes to which this Agreement shall apply are:

(a) in the Republic of Mauritius:

the income tax;

(hereinafter referred to as "Mauritius tax").

(b) in the People's Republic of China:

(i) the individual income tax;

(ii) the enterprises income tax;

(hereinafter referred to as "Chinese tax").

4. This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes referred to in paragraph 3. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws within a reasonable period of time after such changes.

ARTICLE 3 – GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires:

(a) the term "China" means the People's Republic of China; when used in geographical sense, means all the territory of the People's Republic of China, including its territorial sea, in which the Chinese laws relating to taxation apply, and any area beyond its territorial sea, within which the People's Republic of China has sovereign rights of exploration for and exploitation of resources of the sea-bed and its sub-soil and superjacent water resources in accordance with international law;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the terms "a Contracting State" and "the other Contracting State" mean China or Mauritius as the context requires;

(d) the term "tax" means Chinese tax or Mauritius tax, as the context requires;

(e) the term "person" includes an individual, a company, any other body of persons as well as any entity treated as a taxable unit under the taxation laws in force in either Contracting State;

(f) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(g) 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;

(h) the term "nationals" means:

(i) in relation to China, all individuals possessing the nationality of China and all juridical persons created or organised under the laws of China, as well as organisations without juridical personality treated for tax purposes as juridical persons created or organised under the laws of China;

(ii) in relation to Mauritius, all individuals who are citizens of Mauritius and all legal persons, partnerships, associations or other entities deriving their status as such from the laws of Mauritius;

(i) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which is a resident of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(j) the term "competent authority" means, in the case of China, the State Administration of Taxation or its authorised representative, and in the case of Mauritius, the Commissioner of Income Tax or his authorised representative.

2. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State concerning the taxes to which this Agreement applies.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of incorporation or place of effective management or any other criterion of a similar nature.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);

(b) if the Contracting 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 Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode;

(c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

(d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of head office or place of effective management is situated. However, where such a person has its place of effective management in a Contracting State and its place of head office in the other Contracting State, the competent authorities of the Contracting States shall by mutual agreement determine the State of which the person in question is a resident.

[Art. 4 amended by reg. 3(b) of GN 202 of 2008 w.e.f. 27 September 2008.]

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(h) a farm or plantation.

3. The term "permanent establishment" likewise encompasses:

(a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than 12 months;

(b) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same project or a connected project for a period or periods aggregating more than 12 months within any 24 months period.

4. Notwithstanding the preceding provisions of paragraphs 1 to 3, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent of an independent status to whom the provisions of paragraph 6 apply – is acting in a Contracting State on behalf of an enterprise of the other Contracting State, has and habitually exercises an authority to conclude contracts in the name of the enterprise, 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, 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.

6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other Contracting State through a broker, a 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property situated in the other Contracting State may be taxed in that other Contracting State.

2. 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, 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 and aircraft shall not be regarded as immovable property.

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

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that Contracting 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 Contracting State but only so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, 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 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 determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the business of 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, nothing in paragraph 2 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.

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 paragraphs 1 to 5, 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 of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits derived by an enterprise which is a resident of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that Contracting State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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.

2. Where a Contracting State includes in the profits of an enterprise of that Contracting State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other Contracting State, and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Contracting 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 tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.

ARTICLE 10 – DIVIDENDS

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 Contracting State.

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 Contracting State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed 5 per cent of the gross amount of the dividends. The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

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.

4. The provisions of paragraphs 1 and 2 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 Contracting 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, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other Contracting State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other Contracting 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 Contracting 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 Contracting State.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that Contracting 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.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State and derived by the Government of the other Contracting State, a local authority and the Central Bank thereof or any financial institution wholly owned by that Government, or by any other financial institution agreed upon by that competent authorities of the Contracting States, or by any other resident of that other Contracting State with respect to debt-claims indirectly financed by the Government of that other Contracting State, a local authority, and the Central Bank thereof or any financial institution wholly owned by the Government, or by any other financial institution agreed upon by the competent authorities of the Contracting States shall be exempt from tax in the first-mentioned Contracting State.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

5. The provisions of paragraphs 1, 2 and 3 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 Contracting 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, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a local authority thereof or a resident of that Contracting State. Where, however, the person paying the interest, whether he is a resident of a 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 Contracting State in which the permanent establishment or fixed base is situated.

7. 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.

2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the laws of that Contracting State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.

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 and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a 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 Contracting State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are 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.

5. Royalties shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a local authority thereof or a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a 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 Contracting State in which the permanent establishment or fixed base is situated.

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 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 Agreement.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other Contracting State.

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 purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other Contracting State.

3. Gains derived by an enterprise which is a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that Contracting State.

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 Contracting State.

5. Gains from the alienation of any property other than that referred to in paragraphs 1 to 4, shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

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 Contracting State except in one of the following circumstances, when such income may also be taxed in the other Contracting State:

(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 Contracting State; or

(b) if his stay in the other Contracting State is for a period or periods exceeding in the aggregate 183 days in any 12-month period; in that case, only so much of the income as is derived from his activities performed in that other Contracting State may be taxed in that other Contracting State.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, 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 Contracting 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 Contracting State.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any 12-month period; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other Contracting State.

3. Notwithstanding the preceding provisions of paragraphs 1 and 2 of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated by an enterprise which is a resident of a Contracting State in international traffic, shall be taxable only in that Contracting State.

ARTICLE 16 – DIRECTORS' FEES

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 Contracting State.

ARTICLE 17 – ARTISTES AND ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, 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 an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other Contracting State.

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived by entertainers or athletes who are residents of a Contracting State from the activities exercised in the other Contracting State under a plan of cultural exchange between the Governments, local authorities or wholly or substantially government-funded bodies of both Contracting States shall be exempt from tax in that other Contracting State.

ARTICLE 18 – PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that Contracting State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other similar payments made by the Government of a Contracting State or a local authority thereof under a public welfare scheme of the social security system of that Contracting State shall be taxable only in that Contracting State.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or a local authority thereof, in the discharge of functions of a governmental nature, shall be taxable only in that Contracting State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other Contracting State and the individual is a resident of that other Contracting State who:

(i) is a national of that other Contracting State; or

(ii) did not become a resident of that other Contracting State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds to which contributions are made by the Government of a Contracting State or a local authority thereof to an individual in respect of services rendered to the Government of that Contracting State or a local authority thereof shall be taxable only in that Contracting State.

(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that other Contracting State.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by the Government of a Contracting State or a local authority thereof.

ARTICLE 20 – TEACHERS AND RESEARCHERS

An individual who is, or immediately before visiting a Contracting State was, a resident of the other Contracting State and is present in the first-mentioned Contracting State for the primary purpose of teaching, giving lectures or conducting research at a university, college, school or educational institution or scientific research institution approved by the Government of the first-mentioned Contracting State shall be exempt from tax in the first-mentioned Contracting State, for a period of two years from the date of his first arrival in the first-mentioned Contracting State, in respect of remuneration for such teaching, lectures or research.

ARTICLE 21 – STUDENTS AND TRAINEES

A student, business apprentice or trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training shall be exempt from tax in that first-mentioned State on the following payments or income received or derived by him for the purpose of his maintenance, education or training:

(a) payments derived from sources outside that Contracting State for the purpose of his maintenance, education, study, research or training;

(b) grants, scholarships or awards supplied by the Government, or a scientific, educational, cultural or other tax-exempt organisation; and

(c) income derived from personal services performed in that Contracting State.

ARTICLE 22 – OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that Contracting State.

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 Contracting 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.

ARTICLE 23 – METHODS FOR THE ELIMINATION OF DOUBLE TAXATION

1. In China, double taxation shall be eliminated as follows:

(a) Where a resident of China derives income from Mauritius the amount of tax on that income payable in Mauritius in accordance with the provisions of this Agreement, may be credited against the Chinese tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Chinese tax on that income computed in accordance with the taxation laws and regulations of China.

(b) Where the income derived from Mauritius is a dividend paid by a company which is a resident of Mauritius to a company which is a resident of China and which owns not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the tax paid in Mauritius by the company paying the dividend in respect of the profits out of which the dividend is paid.

2. In Mauritius, double taxation shall be eliminated as follows:

(a) Where a resident of Mauritius derives income from China, the amount of tax on that income payable in China in accordance with the provisions of this Agreement, may be credited against the Mauritius tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Mauritius tax on that income computed in accordance with the taxation laws and regulations of Mauritius.

(b) Where the income derived from China is a dividend paid by a company which is a resident of China to a company which is a resident of Mauritius and which owns not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the tax paid in China by the company paying the dividend in respect of the profits out of which the dividend is paid.

3. The tax paid in a Contracting State mentioned in paragraphs 1 and 2 of this Article, shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other tax incentives of the Contracting State for the promotion of economic development.

ARTICLE 24 – NON-DISCRIMINATION

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 Contracting State in the same circumstances are or may be subjected. The provisions of this paragraph shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

2. 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 Contracting State than the taxation levied on enterprises of that other Contracting State carrying on the same activities. The provisions of this paragraph 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 to its own residents.

3. Except where the provisions of Article 9, paragraph 7 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 purpose 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.

4. 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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

5. In this Article, the term "taxation" means taxes of every kind and description.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

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 a satisfactory 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 which is not in accordance with the provisions of this Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

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 paragraphs 2 and 3. When it seems advisable for reaching agreement, representatives of the competent authorities of the Contracting States may meet together for an oral exchange of opinions.

ARTICLE 26 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the. Contracting States concerning taxes covered by the Agreement, insofar as the taxation thereunder is not contrary to this Agreement, in particular for the prevention of evasion of such taxes. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret and shall be disclosed only to persons or 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 Agreement. 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.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

ARTICLE 27 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 – ENTRY INTO FORCE

This Agreement shall enter into force on the thirtieth day after the date on which diplomatic notes indicating the completion of internal legal procedures necessary in each country for the entry into force of this Agreement have been exchanged. This Agreement shall have effect:

(a) in China, as respects income derived during the taxable years beginning on of after the first day of January next following that in which this Agreement enters into force.

(b) in Mauritius, as respects income derived during the income years beginning on or after the first day of July next following the date on which the Agreement enters into force.

ARTICLE 29 – TERMINATION

This Agreement shall continue in effect indefinitely but either of the Contracting State may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give written notice of termination to the other Contracting State through the diplomatic channels. In such event this Agreement shall cease to have effect:

(a) in the case of China, as respects income derived during the taxable years beginning on or after the first day of January in the calendar year next following that in which the notice of termination is given;

(b) in the case of Mauritius, as respects income derived during the income years beginning on or after the first day of July in the calendar year next following that in which the notice of termination is given.

Done at Beijing on the First day of August, 1994 in duplicate in the Chinese and English languages, both texts being equally authentic.

Hon.Ramakrishna SITHANEN Hon. LIU ZHONG LI

Minister of Finance
For the Government of the
Republic of Mauritius

Minister of Finance
For the Government of the
People's Republic of China

PROTOCOL

At the signing of the Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income (hereinafter referred to as "the Agreement"), both sides have agreed upon the following provision which forms an integral part of the Agreement.

In connection with Article 8, income derived from China by an enterprise which is a resident of Mauritius from the operation of ships or aircraft in international traffic shall be exempt from the business tax in China, income derived from Mauritius by an enterprise which is a resident of China from the operation of ships or aircraft in international traffic shall be exempt from any tax similar to the business tax in China which may be imposed in Mauritius.

Done at Beijing on the First day of August, 1994 in duplicate in the Chinese and English language, both texts being equally authentic.

Hon. Ramakrishna SITHANEN Hon. LIU ZHONG LI
For the Government of the
Republic of Mauritius
For the Government of the
People's Republic of China

[Sch. amended by reg. 3 of GN 11 of 1996 w.e.f 3 September 1994; renumbered as First Sch. by reg. 4(a) of GN 3 of 2007 w.e.f. 13 January 2007; amended by reg. 3 of GN 202 of 2008 w.e.f. 27 September 2008.]

_______________

SECOND SCHEDULE

[Regulation 2]

PROTOCOL

AMENDING THE AGREEMENT BETWEEN THE GOVERNMENT OF THE
PEOPLE'S REPUBLIC OF CHINA AND THE GOVERNMENT OF THE
REPUBLIC OF MAURITIUS FOR THE AVOIDANCE OF DOUBLE
TAXATION AND THE PREVENTION OF FISCAL EVASION WITH
RESPECT TO TAXES ON INCOME,
SIGNED AT BEIJING ON 1 AUGUST 1994

The Government of the People's Republic of China and the Government of the Republic of Mauritius;

Desiring to conclude a Protocol to amend the Agreement between the Government of the People's Republic of China and the Government of the Republic of Mauritius for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Beijing on 1 August 1994 (hereinafter referred to as "the Agreement");

Have agreed as follows:

ARTICLE 1

1. The following paragraph shall be added to Article 13 of the Agreement as paragraph 5:

"5. Gains derived by a resident of a Contracting State from the alienation of stock, participation, or other rights in the capital of a company which is a resident of the other Contracting State may be taxed in that other Contracting State if the recipient of the gain, during the 12 month period preceding such alienation, had a participation, directly or indirectly, of at least 25 per cent in the capital of that company."

2. The existing paragraph 5 in Article 13 of the Agreement shall be deleted and replaced by the following paragraph:

"6. Gains from the alienation of any property other than that referred to in paragraphs 1 to 5, shall be taxable only in the Contracting State of which the alienator is a resident."

ARTICLE 2

The existing Article 26 of the Agreement shall be deleted and replaced by the following Article:

"ARTICLE 26EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States or their local authorities insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 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 or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person."

ARTICLE 3

The Governments of the Contracting States shall notify each other, through diplomatic notes, of the completion of the internal legal procedures necessary for the entry into force of this Protocol. This Protocol shall enter into force on the date of the later of these notifications and shall thereupon have effect:

(a) in China, in respect of income derived during the taxable year beginning on or after the first day of January next following the year in which this Protocol enters into force;

(b) in Mauritius, in respect of income derived during the income year beginning on or after the first day of July next following the date on which this Protocol enters into force.

ARTICLE 4

This Protocol shall remain in force as long as the Agreement remains in force.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Protocol.

DONE in duplicate at Beijing this fifth day of September 2006, in the English and Chinese languages. In case of divergence in interpretation, the English version shall prevail.

Hon. Xie Xuren H.E Paul Chong Leung
For the Government of the People's
Republic of China
For the Government of Republic of
Mauritius

[Second Sch. added by reg. 4(b) of GN 3 of 2007 w.e.f 13 January 2007.]

–––––––––––––––

Double Taxation Agreement (Republic of Seychelles) Regulations 2005

[GN 78 of 2005 – 14 May 2005] [Section 76]

1. These regulations may be cited as the Double Taxation Agreement (Republic of Seychelles) Regulations 2005.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the Agreement entered by the Government of Mauritius with the Government of the Republic of Seychelles pursuant to section 76 of the Act and set out in the First Schedule as amended by the Protocol set out in the Second Schedule.

[Reg. 2 amended by reg. 3 of GN 118 of 2011 w.e.f 28 May 2011.]

3.

–––––––––––––––

FIRST SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the Republic of Seychelles,

Desiring to conclude an Agreement for the avoidance of double taxation with respect to taxes on income,

Have agreed as follows –

ARTICLE 1 – PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of each Contracting State or its political subdivisions, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income.

3. The existing taxes to which this Agreement shall apply are in particular:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in Seychelles

(i) the Business Tax

(ii) the Petroleum Income Tax.

(hereinafter referred to as "Seychelles tax").

4. This Agreement shall also apply to any identical or substantially similar taxes, which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

5. The competent authorities of the Contracting States shall notify each other of changes which have been made in their respective taxation laws, and if it seems desirable to amend any Article of this Agreement, without affecting the general principles thereof, the necessary amendments may be made by mutual consent by means of an Exchange of Notes.

ARTICLE 3GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Seychelles" means the territory of the Republic of Seychelles including its exclusive economic zone and Continental Shelf where Seychelles exercises sovereign rights and jurisdiction in conformity with the provisions of the United Nations Convention on the Law of the Sea.

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Seychelles as the context requires;

(d) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(e) the term "competent authority" means:

(i) in Mauritius, the Commissioner of Income Tax or his authorised representative; and

(ii) in Seychelles, the Minister of Finance or his authorised representative;

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "national" means:

(i) any individual possessing the nationality or citizenship of a Contracting State;

(ii) any legal person, partnership (société) or association deriving its status as such from the laws in force in a Contracting State;

(i) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes; and

(j) the term "tax" means Mauritius Tax or Seychelles Tax as the context requires.

2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4RESIDENT

1. For the purposes of this Agreement, 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 and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from source in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him. If he has a permanent home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

ARTICLE 5PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include –

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a farm or plantation;

(h) a drilling rig or any installation or structure used for the exploration of natural resources; and

(i) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or construction, installation or assembly project, or supervisory activities in connection therewith only if the site, project or activity lasts more than 12 months.

(b) the furnishing of services including consultancy services by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 6 months within any 12 month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent of an independent status to whom paragraph 6 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 State in respect of any activities which that person undertakes for the enterprise, if such person:

(a) has and habitually exercises 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

(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.

6. 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, is taxable in the Contracting State in which such property is situated.

2. 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, 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 shall apply to income derived from the direct use, letting or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 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.

5. For the purposes of this Article, the term "agriculture" includes fish farming, processing and breeding, and raising of aquatic species including prawns, crayfish, oysters and shellfish.

ARTICLE 7BUSINESS PROFITS

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. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in determining the profits of a permanent establishment, of amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

4. In so far 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, nothing in paragraph 2 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.

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 of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise from the operation or rental of ships or aircraft in international traffic and the rental of containers and related equipment which is incidental to the operation of ships or 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. If the place of effective management of a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9ASSOCIATED ENTERPRISES

1. Where –

(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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State shall, if the recipient is the beneficial owner of the dividends, be taxable only in that other State.

2. 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 Contracting State of which the company making the distribution is a resident.

3. The provisions of paragraph 1 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. 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 in so far as such dividends are paid to a resident of that other State or in so far 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 undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall, if the recipient is the beneficial owner of the interest, be taxable only in that other State.

2. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall, not be regarded as interest for the purpose of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

3. The provisions of paragraph 1 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

5. 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 a 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 Agreement.

ARTICLE 12ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall, if the recipient is the beneficial owner of the royalties, be taxable only in that other State.

2. 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 and films, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, computer programme, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. 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 a Contracting State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

5. 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 royalties paid, 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 the last-mentioned amount. In such a 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 Agreement.

ARTICLE 13CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose 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 taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16,18,19 and 20, 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period commencing or ending in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16DIRECTORS' FEES

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.

ARTICLE 17ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, 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.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities, referred to in paragraph 1, performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by funds of either Contracting State, a local authority or public institution thereof.

ARTICLE 18PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar payments arising in a Contracting State and paid in consideration of past employment to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State.

ARTICLE 19GOVERNMENT SERVICE

1. (a) Salaries, wages, and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision, local authority or statutory body thereof to an individual in respect of services rendered to that State or subdivision, authority or body shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision, local authority or statutory body thereof to an individual in respect of services rendered to that State or subdivision, authority or body shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State, or a political subdivision, local authority or statutory body thereof.

ARTICLE 20PROFESSORS AND TEACHERS

1. Notwithstanding the provisions of Article 15, a professor or teacher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college, school or other educational institution in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State, provided that such remuneration is derived by him from outside that State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 21STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purposes of his maintenance, education or training.

ARTICLE 22OTHER INCOME

1. Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

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 a right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

ARTICLE 23ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) Where a resident of Mauritius derives income from Seychelles the amount of tax on that income payable in Seychelles in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident.

(b) Where a company which is a resident of Seychelles pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5% of the capital of the company paying the dividend, the credit shall take into account (in addition to any Seychelles tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the Seychelles tax payable by the first mentioned company in respect of the profits out of which such dividend is paid.

Provided that any credit allowed under subparagraphs (a) and (b) shall not exceed the Mauritius tax, as computed before allowing any such credit, which is appropriate to the profits or income derived from sources within Seychelles.

2. In the case of Seychelles, where a resident of Seychelles derives income from Mauritius the amount of tax on that income payable in Mauritius in accordance with the provisions of this Agreement may be credited against the Seychelles tax imposed on that resident provided that any credit allowed shall not exceed the Seychelles tax, as computed before allowing any such credit, which is appropriate to the profits or income derived from sources within Mauritius.

3. For the purposes of allowance as a credit, the tax payable in Mauritius or Seychelles as the context requires, shall be deemed to include the tax which would have been payable in either of the two Contracting States but which has been reduced or waived by either State in order to promote its economic development.

ARTICLE 24NON-DISCRIMINATION

1. The 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.

2. 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.

3. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

4. Nothing contained in this Article shall be construed as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to its own residents.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 25MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 26EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement in so far as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts or administrative bodies) concerned with the assessment or collection of the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. 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.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

ARTICLE 27DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 28ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify to the other the completion of the procedures required by its law for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the date upon which this Agreement enters into force; and

(b) in Seychelles:

(i) in respect of tax withheld at source, on income derived on or after the first day of January next following the date upon which this Agreement enters into force; and

(ii) in respect of other taxes, on income for taxable years beginning on or after the first day of January next following the date upon which this Agreement enters into force.

ARTICLE 29 – TERMINATION

1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than 30 June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the calendar year in which such notice is given; and

(b) in Seychelles:

(i) in respect of tax withheld at source, on income derived on or after the first day of January next following the calendar year in which such notice is given;

(ii) in respect of other taxes, on income for taxable years beginning on or after the first day of January next following the calendar year in which such notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at Port Louis in duplicate, this 11th day of March of the year two thousand and five

................................................ ..........................................................

Hon. Pravind Kumar Jugnauth

Hon. Patrick Pillay

Deputy Prime Minister, Minister of
Finance and Economic Development

 

 

Minister of Foreign AffairsFOR THE GOVERNMENT OF THE REPUBLIC OF MAURITIUSFOR THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES

[Sch. renumbered as First Sch. by reg. 4(a) of GN 118 of 2011 w.e.f. 28 May 2011.]

–––––––––––––––

SECOND SCHEDULE

[regulation 2]

PROTOCOL BETWEEN THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS
AND THE GOVERNMENT OF THE REPUBLIC OF SEYCHELLES TO AMEND THE
AGREEMENT FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION
OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME SIGNED AT PORT LOUIS
ON 11 MARCH 2005

The Government of the Republic of Mauritius and the Government of the Republic of Seychelles;

Desiring to conclude a Protocol to amend the Agreement between the Contracting Governments for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed at Port Louis on 11 March 2005 (hereinafter referred to as "the Agreement");

Have agreed as follows:

ARTICLE 1

Article 26 of the Agreement shall be deleted and replaced by the following:-

ARTICLE 26EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States or of their political subdivisions, in so far as the taxation thereunder is not contrary to this Agreement. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 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 or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the law and administrative practice of that or of the other Contracting State;

(b) to supply information which is not obtainable under the law or in the normal course of the administration of that or of the other Contracting State;

(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 (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person."

ARTICLE 2

The Governments of the Contracting States shall notify one another, through diplomatic channels, of the completion of the procedures required by their laws for the bringing into force of this Protocol. This Protocol shall enter into force on the date of the later of these notifications and shall have effect as from that date.

ARTICLE 3

This Protocol shall remain in force as long as the Agreement remains in force.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Protocol.

Done in duplicate at Victoria this 3rd day of March of the year two thousand and eleven.

Hon. Pravind Kumar JUGNAUTH
Vice-Prime Minister, Minister of Finance
and Economic Development

Hon. Danny FAURE
Vice-President

For the Government of the Republic of Mauritius For the Government of the Republic of Seychelles

[Second Sch. added by reg. 4(b) of GN 118 of 2011 w.e.f. 28 May 2011.]

_______________

Double Taxation Avoidance Agreement (Arab Republic of Egypt) Regulations 2013

[GN 72 of 2013 – 6 April 2013] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Arab Republic of Egypt) Regulations 2013.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Arab Republic of Egypt pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on such date as may be specified by the Minister in a notice to be published in the Gazette.

_______________

SCHEDULE

[regulation 2]

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF MAURITIUS AND THE GOVERNMENT OF THE ARAB REPUBLIC OF EGYPT FOR THE AVOIDANCE OF DOUBLE TAXATION AND PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Mauritius and the Government of the Arab Republic of Egypt,

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes in income,

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, its political subdivisions or its local authorities, irrespective of the manner in which they are levied.

There shall be regarded as taxes on income all taxes imposed on total income or on elements of income.

The existing taxes to which this Agreement shall apply are in particular:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in Egypt:

(i) the tax on income of individuals, including:

A. income from salaries and wages;

B. income from commercial and industrial activities;

C. income from professional activities (independent personal services);

D. income derived from immovable property, including income from agricultural land, building and furnished units;

(ii) the tax on profits of legal entities (corporations and partnerships);

(iii) the duty for the development of the financial resources of the State;

(iv) tax withheld at source;

(v) the supplementary taxes imposed as percentage of taxes mentioned above or otherwise;

(hereinafter referred to as "Egyptian tax").

4. This Agreement shall also apply to any other taxes of a substantially similar character which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

5. The competent authorities of the Contracting States shall notify each other of changes which have been made in their respective taxation laws, and if it seems desirable to amend any Article of this Agreement, without affecting the general principles thereof, the necessary amendments may be made by mutual consent by means of an Exchange of Notes.

ARTICLE 3 – GENERAL DEFINITIONS

In this Agreements, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Egypt" means the territory of the Arab Republic of Egypt, and when used in a geographical sense, includes the territorial sea and any area adjacent to the coast beyond the territorial waters, over which Egypt exercises sovereign rights, in accordance with Egyptian legislation and international law, and which has been or may hereafter be designated as an area within which Egypt may exercise rights with respect to the sea-bed and sub-soil and their natural resources.

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Egypt, as the context requires;

(d) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(e) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance and Economic Empowerment or his authorised representative; and

(ii) in Egypt, the Minister of Finance or his authorised representative.

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "national" means any individual having the citizenship of a Contracting State and any legal person, partnership (société) or association deriving its status as such from the laws in force in a Contracting State;

(i) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes; and

(j) the term "tax" means Mauritius tax or Egyptian tax, as the context requires.

2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, 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 incorporation, place of management or any other criterion of a similar nature and also includes that State, its political subdivision and its local authority. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him. If he has a permanent home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially :

(a) a place of management;

(b) a branch;

(c) an office;,

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) premises and warehouses used as sales outlets;

(h) a farm or plantation;

(i) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(j) an installation or structure used for the exploration or exploitation of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or construction, installation or assembly project, including supervisory activities in connection therewith only if the site, project or activity lasts more than 6 months.

(b) the furnishing of services, including consultancy services by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 6 months within any 12 month period.

4. An enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if substantial equipment in the other Contracting State:

(a) either belonging to the enterprise or being leased under a contract by the enterprise from any other person, is being used; or

(b) is being installed by the enterprise.

5. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(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; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

6. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 8 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:

(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 5 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

(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;

(c) habitually secures orders in the first-mentioned State for the enterprise and other enterprises which are controlled by it or have a controlling interest in it.

7. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall except in regard to re-insurance 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 risk situated therein through a person other than an agent of an independent status to whom paragraph 8 applies.

8. 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.

9. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, is taxable in the Contracting State in which such property is situated.

2. 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, 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, and aircraft shall not be regarded as immovable property.

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

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

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 (a) that permanent establishment; (b) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or (c) other business activities carried on in that other State of the same or similar kinds as those effected through that permanent establishment. However, the profits derived from the sales described in subparagraph (b) or other business activities in subparagraph (c) shall not be taxable in the other State if the enterprise demonstrates that such sales or business activities have been carried out for reasons other than obtaining a benefit under this Agreement.

2. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

However, no such deduction shall be allowed in respect of:

(a) any amount, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of banks, by way of interest on money lent to the permanent establishment;

(b) any amount charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other of similar payments in return for the use of patents or other rights, or by way of commission for specific service performed or for management, or, except in the case of banks, by way of interest on money lent to the head office of the enterprise or any of its other offices.

4. In so far 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, nothing in paragraph 2 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.

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 of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise from the operation of ships or 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. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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 2 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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

3. A Contracting State shall not change the profits of an enterprise in the circumstances referred to in paragraph 1 after the expiry of the time limits provided in its national laws and, in any case, after five years from the end of the year in which the profits which would be subject to such change would have accrued to an enterprise of that State.

4. The provisions of paragraphs 2 and 3 shall not apply in the case of fraud, wilful default or neglect.

ARTICLE 10 – DIVIDENDS

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.

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 beneficial owner of the dividends is a resident of the other Contracting State the tax so charged shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly or indirectly at least 25 per cent of the capital of the company paying the dividends;

(b) 10 per cent of the gross amount of the dividends in all other cases.

The provisions of this paragraph shall not affect the taxation of the company on the profits out of which the dividends are paid.

3. Notwithstanding the provisions of paragraph 2, where dividends paid by a company which is a resident of a Contracting State are derived and beneficially owned by the Government of the other Contracting State, such dividends shall be exempt in the first-mentioned Contracting State. For the purposes of this paragraph, the Government of a Contracting State shall include:

(a) In the case of Egypt:

(i) The Central Bank of Egypt;

(ii) The Social Insurance Fund of Egypt;

(iii) The National Investment Bank; and

(iv) A statutory body or any institution wholly or mainly owned by the Government of Egypt, as may be agreed from time to time between the competent authorities of the Contracting States.

(b) In the case of Mauritius:

(i) The Bank of Mauritius;

(ii) The National Pensions Fund and the National Savings Fund; and

(iii) A statutory body or any institution wholly or mainly owned by the Government of the Republic of Mauritius as may be agreed from time to time between the competent authorities of the Contracting States.

4. 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 Contracting State of which the company making the distribution is a resident.

5. The provisions of paragraphs 1 and 2 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, as the case may be shall apply.

6. 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 in so far as such dividends are paid to a resident of that other State or in so far as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 beneficial owner of the interest is a resident of the other Contracting State the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest shall be exempt from tax in the Contracting State in which it arises, if the beneficial owner is the Government of a Contracting State or a political subdivision or a local authority thereof. For the purposes of this paragraph, the term "the Government of a Contracting State" shall have the same meaning as in paragraph 3 of Article 10.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

5. The provisions of paragraphs 1 and 2 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, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or 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.

7. 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 beneficial owner of the royalties is a resident of the other Contracting State the tax so charged shall not exceed 12 per cent of the gross amount of the royalties.

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 and video films, or films or tapes used for radio or television broadcasting, any patent, trade mark, design or model, computer software, plan, secret formula or process, or for the use of, or the right to use industrial, commercial, or scientific equipment, or for information concerning industrial, commercial or scientific experience. It also includes payments for technical assistance performed in a Contracting State by a resident of the other Contracting State where it is related to the application of any such rights, property or information.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are 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.

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 a Contracting State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

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 royalties paid, 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 a 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 Agreement.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 or such fixed base (alone or with the whole enterprise), may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of shares of the capital stock or any other shares 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.

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.

6. The provisions of paragraph 5 shall not affect the right of a Contracting State to levy according to its own law a tax on capital gains from the alienation of any property derived by a person who is a resident of the other Contracting State and has been a resident of the first-mentioned Contracting State at any time during the five years immediately preceding the alienation of the property.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

1. Income derived by an individual who is 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:

(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 Contracting State; or

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in aggregate 183 days within 12 months concerned; in that case, only as so much of the income as is derived from his activities performed in that other State may be taxed in that other State.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19 and 20, 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period commencing or ending in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of an employer who is a resident of the first-mentioned State; and

(c) the remuneration is not borne by a permanent establishment or fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16 – DIRECTORS' FEES

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 or any other similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.

ARTICLE 17 – ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, 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.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities performed in a Contracting State by entertainers or sportsmen if the visit to that State is a part of cultural exchange and is substantially supported by public funds of the other Contracting State or a political subdivision or a local authority thereof. In such a case, the income shall be taxable only in the State of which the entertainer or sportsman is a resident.

ARTICLE 18 – PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar payments arising in a Contracting State and paid in consideration of past employment to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State, its political subdivision or its local authority shall be taxable only in that State.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Salaries, wages, and other similar remuneration, other than a pension, paid by a Contracting State, its political subdivision, its local authority or its statutory body to an individual in respect of services rendered to that State, subdivision, authority or body shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State, its political subdivision, its local authority or its statutory body to an individual in respect of services rendered to that State, subdivision, authority or body shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State, its political subdivision, its local authority or statutory body.

ARTICLE 20 – PROFESSORS, TEACHERS AND RESEARCHERS

1. Notwithstanding the provisions of Article 15, a professor, teacher or researcher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college or other establishment for higher education in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 21 – STUDENTS AND BUSINESS APPRENTICES

1. A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purposes of his maintenance, education or training.

2. Notwithstanding the provisions of Articles 14 and 15 a student or an apprentice who is or was immediately before visiting a Contacting State a resident of the other State and who is present in the first State solely for the purpose of his education or training shall not be taxed in the first State, provided that the services are in connection with his studies or training or the remuneration of the services constitutes earnings necessary for his maintenance, studies and training for a period not exceeding two years.

ARTICLE 22 – OTHER INCOME

1. Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

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.

3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of the Agreement and arising in the other Contracting State may also be taxed in that other state.

ARTICLE 23 – ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) where a resident of Mauritius derives income from Egypt the amount of tax on that income payable in Egypt in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident.

(b) where a company which is a resident of Egypt pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5% of the capital of the company paying the dividend, the credit shall take into account (in addition to any Egyptian tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the Egyptian tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid.

Provided that any credit allowed under subparagraphs (a) and (b) shall not exceed the Mauritius tax (as computed before allowing any such credit), which is appropriate to the profits or income derived from sources within Egypt.

2. In the case of Egypt:

In accordance with the provisions and subject to the limitation of the Egyptian laws (as may be amended from time to time without changing the general principle),

(a) where a resident of Egypt derives income which in accordance with the provisions of this Agreement may be taxed in Mauritius, Egypt shall allow a deduction from the tax on the income of that resident an amount equal to the income tax paid in Mauritius.

(b) the deduction mentioned in subparagraph (a) shall not, however, exceed that part of the income tax as computed before the deduction is given, which is attributable to the income which may be taxed in Mauritius.

ARTICLE 24 – NON DISCRIMINATION

1. The 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.

2. 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. 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 its own residents.

3. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), paragraph 7 of Article 11 (Interest), or paragraph 6 of Article 12 (Royalties), 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 purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they have been paid to a resident of the first-mentioned Contracting State.

4. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement.

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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 26 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 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 or authorities (including Courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

ARTICLE 27 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify to the other the completion of the procedures required by its law for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the date upon which this Agreement enters into force; and

(b) in Egypt:

(i) in respect of tax withheld at source, on amounts paid or credited on or after the first day of January in the calendar year following the entry into force of the Agreement; and

(ii) in respect of other taxes, for taxation years or periods beginning on or after the first day of January in the calendar year following the entry into force of the Agreement.

ARTICLE 29 – TERMINATION

1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than 30 June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the calendar year in which such notice is given; and

(b) in Egypt:

(i) in respect of tax withheld at source, on amounts paid or credited on or after the first day of January in the calendar year following that in which the notice has been given; and

(ii) in respect of other taxes, for taxation years beginning on or after the first day of January in the calendar year following that in which the notice has been given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at Cairo in duplicate, this 19 day of December of the year two thousand and twelve in the English and Arabic languages, both texts being equally authentic. In case of divergence, the English text shall prevail.

Mohammed Naguib Soomauroo MamHouh Sayed Omar
First Secretary of the Embassy
of the Republic of Mauritius
Commissioner of the
EgyptianTax Authority
For the Government of
the Republic of Mauritius
For the Government of the
Arab Republic of Egypt

PROTOCOL

At the time of the signature of the Agreement between the Government of the Republic of Mauritius and the Government of the Arab Republic of Egypt for the avoidance of double taxation and prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed that the following provisions shall form an integrated part of the Agreement.

It is understood that:

(1) In the case of Mauritius, the exemption or reduction in tax as provided under Articles 10, 11 and 12 of the Agreement shall not apply to persons registered under the Financial Services Act (formerly incorporated under the International Companies Act) whose income or profits are not taxed at the normal corporate tax in Mauritius or any income tax comparable thereto.

(2) With reference to Article 25 of the Agreement, where a person is not satisfied with an assessment of a Contracting State, he may submit an application for review of that assessment (unless the tax assessed is final) to the competent authority of the Contracting State of which he is a resident or national, as the case may be, within a period of three years as provided under paragraph 1 of Article 25. Any agreement subsequently reached on the application between the Contracting States shall be implemented, irrespective of whether there is a time limit or not in the domestic law of the Contracting States.

(3) With reference to Article 26 of the Agreement:

(a) The competent authorities of both Contracting States shall implement those measures provided in their domestic laws to maintain the secrecy of information in public court, and in no case and under no circumstances the information should be used for any other purposes or by other authorities.

(b) Where a Contracting State has made a request for tax information but has no provisions in its domestic law for sanctioning any breach of secrecy or confidentiality, that Contracting State shall be bound by the provisions of Article 26, otherwise the requested State may decline to supply such information.

(c) With regard to the principles set out in paragraph 5 of Article 26 in the OECD Model Tax Convention on Income and Capital which reads as follows :

In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person,

as soon as the provisions on bank secrecy are amended by Egypt to comply with the requirements of the above mentioned paragraph 5, Egypt shall notify Mauritius accordingly to enable amendments to be made to Article 26 of the Agreement.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at Cairo in duplicate, this 19 day of December of the year two thousand and twelve in the English and Arabic languages, both texts being equally authentic. In case of divergence, the English text shall prevail.

For the Government of the
Republic of Mauritius

For the Government of the Arab
Republic of Egypt

Mohammed Naguib Soomauroo MamHouh Sayed Omar

First Secretary of the Embassy of the Republic of Mauritius

Commissioner of the Egyptian Tax Authority

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Double Taxation Avoidance Agreement (Bangladesh) Regulations 2010

[GN 91 of 2010 – 24 April 2010] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Bangladesh) Regulations 2010.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the Convention entered by the Government of Mauritius with the Government of the People's Republic of Bangladesh pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. on 15 September 2010.][General Notice No. 2077 of 2010.]

_________________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the People's Republic of Bangladesh,

DESIRING to conclude a Convention for the avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on Income,

HAVE agreed as follows –

ARTICLE 1 – PERSONAL SCOPE

This Convention shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Convention shall apply to taxes on income imposed by or on behalf of a Contracting State or its local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income, all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3. The existing taxes to which the Convention shall apply are:

(a) in the case of Bangladesh:

the income tax

(hereinafter referred to as "Bangladesh tax");

(b) in the case of Mauritius:

the income tax

(hereinafter referred to as "Mauritius tax")

4. This Convention shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.

ARTICLE 3 – GENERAL DEFINITIONS

1. In this Convention, unless the context otherwise requires:

(a) the term "Bangladesh" means all the territory of the People's Republic of Bangladesh including the part of the sea-bed and its sub-soil thereof, to the extent that area in accordance with international law has been or may hereafter be designated under Bangladesh law as an area within which Bangladesh may exercise sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed or its sub-soil;

(b) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius, and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the terms "a Contracting State" and "the other Contracting State" mean Bangladesh or Mauritius as the context requires;

(d) the term "tax" means any tax covered by Article 2 of this Convention;

(e) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes;

(f) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(g) 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;

(h) the term "competent authority" means:

(1) in the case of Bangladesh, the National Board of Revenue or its authorised representative;

(2) in the case of Mauritius, the Commissioner of Income Tax or his authorised representative;

(i) the term "national" means all individuals possessing the nationality or citizenship of the respective Contracting States and also any legal person, partnership (société) and association deriving their status as such from the laws in force in the respective Contracting States;

(j) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State.

2. As regards the application of the Convention by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that Contracting State, relating to the taxes to which this Convention applies.

ARTICLE 4 – RESIDENT

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. This term, however, does not include any person who is liable to tax in that state in respect only of income from sources in that state.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(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 home 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);

(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;

(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 of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(h) an installation or structure used for the exploration of natural resources.

3. The term '˜'permanent establishment" likewise encompasses:

(a) a building site or construction, installation or assembly project, or supervisory activities in connection therewith only if the site, project or activity lasts more than 12 months;

(b) the furnishing of services including consultancy services by an enterpriser of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 12 months.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;

(c) the maintenance of stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information for the enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. A person acting in a Contracting State for or on behalf of an enterprise of the other Contracting State – other than an agent of an independent status to whom paragraph 6 applies – shall be deemed to be a permanent establishment in the first-mentioned State, if:

(a) he has, and habitually exercises, in the first-mentioned State a general authority to conclude contracts for or on behalf of the enterprise, unless his activities are limited to the purchase of goods or merchandise for or on behalf of the enterprise, or

(b) he habitually maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly delivers goods or merchandise for or on behalf of the enterprise, or

(c) he habitually secures orders for the sale of goods or merchandise in the first-mentioned State, wholly or almost wholly for the enterprise itself, or for the enterprise or other enterprise which are controlled by it or have a controlling interest in it.

6. 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

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.

2. 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, 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 shall apply to income derived from the direct use, letting or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

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. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, but this does not include any expenses which under the law of that State would not be allowed to be deducted by an enterprise of that Stated.

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 nothing in paragraph 2 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 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 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.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Income of an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxable only in that State.

2. Income of an enterprise of a Contracting State derived from the other Contracting State from the operation of ships in international traffic may be taxed in that other Contracting State, but the tax chargeable in that other Contracting State on such income shall be reduced by an amount equal to fifty per cent of such tax.

3. The provisions of paragraphs 1 and 2 shall also apply to profits derived from the participation in a pool a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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.

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 States 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.

ARTICLE 10 – DIVIDENDS

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.

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% of the gross amount of such dividends. The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term "dividends" as used in this Article means income from shares, or other rights, hot 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 shades by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the recipient 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 a permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

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 dividends 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.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

3. The provisions of paragraph 1 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, as the case may be, shall apply.

4. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the interest whether he is a resident of a 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.

5. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other persons, 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.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. 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 of scientific work (including cinematograph films and films, tapes and discs for radio and television broadcasting), any patent, trade mark, design or model, computer programme, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

3. The provisions of paragraphs 1 shall not apply if the beneficial owner of the royalties, being a resident of a 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 fight or properly in respect of which the royalties are 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.

4. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or 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 a Contracting State a permanent establishment or a fixed base in connection with which the obligation 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.

5. 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 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.

ARTICLE 13CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose 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 taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State of which the enterprise is a resident.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

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 Contracting State. However, in the following circumstances such income may be taxed in the other Contracting State:

(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 the other Contracting State; or

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days 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 may be taxed in that other State.

2. The term "professional services" includes, especially, independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects, dentists and accountants.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20, and 21 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period, or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State, shall be taxable only in that State.

ARTICLE 16 – DIRECTORS' FEES

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.

ARTICLE 17 – ENTERTAINERS AND ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.

3. The provisions of paragraphs (1) and (2) of this Article shall not apply to services of entertainers and athletes if their visit to a Contracting State is supported wholly or substantially from public funds of the other Contracting State.

ARTICLE 18 – PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar payments arising in a Contracting State and paid in consideration of past employment to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a local authority thereof shall be taxable only in that State.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State.

(b) 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a local authority thereof to an individual in respect of services rendered to that State, or local authority shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof.

ARTICLE 20 – TEACHERS AND RESEARCHERS

Notwithstanding the provisions of Article 15, a professor or teacher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college, school or other educational institution recognised by a competent authority in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State.

ARTICLE 21 – STUDENTS AND APPRENTICES

A student, business apprentice or trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training shall be exempt from tax in that first-mentioned State on the following payments or income received or derived by him for the purpose of his maintenance, education or training:

(a) payments derived from sources outside that Contracting State for the purpose of his maintenance, education, study, research or training;

(b) grants, scholarships or awards supplied by the Government, or a scientific, educational, cultural or other tax-exempt organization; and

(c) income derived from personal services performed in that Contracting State.

ARTICLE 22 – OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

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 a case, the provisions of Article 7 or Article 14, as a case may be, shall apply.

ARTICLE 23 – ELIMINATION OF DOUBLE TAXATION

1. In Bangladesh, double taxation shall be eliminated as follows:

(a) subject to the provisions of subparagraph (c), where a resident of Bangladesh derives income which, in accordance with the provisions of this Convention, may be taxed in Mauritius, Bangladesh shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Mauritius;

(b) such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Mauritius;

(c) where a resident of Bangladesh derives income which, in accordance with the provisions of this Convention, shall be taxable only in Mauritius, Bangladesh may include this income in the tax base, but shall allow as a deduction from the income tax that part of the income tax, which is attributable to the income derived from Mauritius.

2. In Mauritius, double taxation shall be eliminated as follows:

(a) where a resident of Mauritius derives income from Bangladesh, the amount of tax on that income payable in Bangladesh in accordance with the provisions of this Convention, may be credited against the Mauritius tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Mauritius tax on that income computed in accordance with the taxation laws and regulations of Mauritius.

(b) where the income derived from Bangladesh is a dividend paid by a company which is a resident of Bangladesh to a company which is a resident of Mauritius and which owns not less than 10 per cent of the shares of the company paying the dividend, the credit shall take into account the tax paid in Bangladesh by the company paying the dividend in respect of the profits out of which the dividend is paid.

3. The tax paid in a Contracting State mentioned in paragraphs 1 and 2 of this Article, shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other tax incentives of the Contracting State for the promotion of economic development.

ARTICLE 24 – NON-DISCRIMINATION

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 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.

2. 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. 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 to its own residents.

3. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contacting State to a resident of the other Contracting State shall, for the purpose 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.

4. 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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

5. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 the provisions of 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 from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

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 a satisfactory 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 which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limit in the domestic law of the Contracting States.

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.

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.

ARTICLE 26 EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting State 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 Contracting State shall be treated as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or 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.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or the other Contracting State;

(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.

ARTICLE 27 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 – ENTRY INTO FORCE

Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Convention. The Convention shall enter into force on the date of the later of these notifications and shall thereupon have effect in both Contracting States in respect of taxes on income for the year of assessment beginning on or after the 1st day of July in the calendar year next following, that in which the Convention enters into force.

ARTICLE 29 – TERMINATION

This Convention shall remain in force indefinitely but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State through diplomatic channels, written notice of termination and, in such event, this Convention shall cease to have effect in respect of income for any year of assessment beginning on or after the first day of July next following the calendar year in which the notice is given.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Convention.

DONE in duplicate at Port Louis, this 21 day of December 2009, in the English language.

Dr. The Hon. Ramakrishna Sithanen
Vice Prime Minister, Minister of Finance
and Economic Empowerment

Dr. Dipu Moni, MP
Foreign Minister

For the Government of the Republic of Mauritius

For the Government of the People's Republic of Bangladesh

PROTOCOL

The Government of the Republic of Mauritius

and
The Government of the People's Republic of Bangladesh

At the time of signing the Convention between the Government of the Republic of Mauritius and the Government of the People's Republic of Bangladesh for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed that the following provision shall form an integral part of the Convention.

Where, in any Convention entered into between Bangladesh and any other State for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes income subsequent to this Convention, a lower rate than the rate of 10 per cent specified in Article 10 of this Convention is provided for, Bangladesh agrees that such lower rate shall apply to this Convention.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto, have signed this Convention.

Done in duplicate at Port Louis, this 21 day of December 2009, in the English language.

Dr. The Hon. Ramakrishna Sithanen
Vice Prime Minister, Minister of Finance
and Economic Empowerment

Dr. Dipu Moni, MP
Foreign Minister

For the Government of the Republic of Mauritius

For the Government of the People's Republic of Bangladesh

_______________

Double Taxation Avoidance Agreement (Barbados) Regulations 2004

[GN 192 of 2004 – 27 November 2004] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Barbados) Regulations 2004.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of Barbados pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 28 January 2005.]

________________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of Barbados,

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have agreed as follows:

ARTICLE 1PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or its local authorities.

2. The existing taxes to which this Agreement shall apply are:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in Barbados,

(i) the income tax (including premium income tax);

(ii) the corporation tax (including the tax on branch profits); and

(iii) the petroleum winning operations tax;

(hereinafter referred to as "Barbados tax").

3. This Agreement shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes.

4. The competent authorities of the Contracting States shall notify each other of changes which have been made in their respective taxation laws, and if it seems desirable to amend any Article of this Agreement, without affecting the general principles thereof, the necessary amendments may be made by mutual consent by means of Exchange of Notes.

ARTICLE 3GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated under the laws of Mauritius as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Barbados" means the island of Barbados and the territorial waters thereof, including any area outside such territorial waters which in accordance with international law and the laws of Barbados is an area within which the rights of Barbados with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(c) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;

(d) the term "competent authority" means:

(i) in Mauritius, the Minister responsible for Finance or his authorised representative; and

(ii) in Barbados, the Minister responsible for Finance or his authorised representative;

(e) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Barbados, as the context requires;

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "person" includes an individual, a company, a trust and any other body of persons; and

(i) the term "national" means any individual who is a citizen of a Contracting State, and any legal person, partnership (société) and association deriving its status as such from the laws in force in a Contracting State.

2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under the other laws of that State.

ARTICLE 4RESIDENT

1. For the purposes of this Agreement, 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 and also includes that State and any local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(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 only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

ARTICLE 5PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others; and

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. A building site or construction or installation project, or an installation or drilling rig or ship used for the exploration or exploitation of natural resources, constitutes a permanent establishment only if it lasts more than six months.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;

(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;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person, other than an agent of an independent status to whom paragraph 6 applies, is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for 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.

6. 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6INCOME FROM IMMOVABLE PROPERTY

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.

2. 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, 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 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7BUSINESS PROFITS

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. Notwithstanding the provisions of paragraph 1, where an enterprise of a Contracting State which has a permanent establishment in the other Contracting State carries on business activities in that other State, otherwise than through the permanent establishment, of the same or similar kind as the business activities carried on by the permanent establishment, then the profits of such activities may be attributable to the permanent establishment unless the enterprise shows that such activities could not have been reasonably undertaken by the permanent establishment.

3. Subject to the provisions of paragraph 4, where an enterprise of a Contracting State carries on business in the other Contacting 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.

4. 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

5. 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, nothing in paragraph 3 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.

6. 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.

7. 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.

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

ARTICLE 8SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise from the operation of ships or aircraft in international traffic and from the rental of containers and related equipment which is incidental to the operation of ships or 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. If the place of effective management of a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9ASSOCIATED ENTERPRISES

1. Where

(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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10DIVIDENDS

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.

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 5 percent 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.

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.

4. The provisions of paragraphs 1 and 2 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, as the case may be, shall apply.

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 dividends 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.

6. Where a company, which is a resident of a Contracting State has a permanent establishment in the other Contracting State and derives profits or income from that permanent establishment, any remittances or deemed remittances of such profits or income by the permanent establishment to that company may, notwithstanding any other provisions of the Agreement, be taxed in accordance with the law of the other Contracting State, but the rate of tax imposed on such remittances shall not exceed 5 percent.

ARTICLE 11INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 5 percent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if it is derived and beneficially owned by:

(a) the Government of the other Contracting State or any agency or instrumentality thereof;

(b) the Central Bank of the other Contracting State; or

(c) any other financial institution as may be agreed upon by the competent authorities of the Contracting States.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

5. The provisions of paragraphs 1 and 2 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, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

7. 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 Agreement.

ARTICLE 12ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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, the tax so charged shall not exceed 5 percent of the gross amount of the royalties.

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 and other films, discs or tapes for radio or television broadcasting), any patent, trademark, design or model, plan, computer programme, secret formula or process, or for information concerning industrial, commercial or scientific experience.

4. Notwithstanding the provisions of paragraphs 1 and 2, royalties in respect of the use of, or the right to use any copyright of literary, artistic or scientific work (including cinematograph films and other films, discs or tapes for radio or television broadcasting) arising in a Contracting State and paid to a resident of the other Contracting State shall be exempt from tax in the first-mentioned State.

5. The provisions of paragraphs 1, 2 and 4 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are 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.

6. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or 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 a Contracting State a permanent establishment or a 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.

7. 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 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 Agreement.

ARTICLE 13CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose 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 taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14INDEPENDENT PERSONAL SERVICES

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. However, such income may be taxed in the other Contracting State in the following circumstances:

(a) if the resident of the Contracting State 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 Contracting State; or

(b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any 12-month period commencing or ending in the fiscal year concerned; in that case, only so much of the income as is derived from the activity exercised in the other Contracting State during the aforesaid period or periods may be taxed in that other State.

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.

ARTICLE 15DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19 and 21. 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period commencing or ending in the fiscal year concerned;

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16DIRECTORS' FEES

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.

ARTICLE 17ENTERTAINERS AND SPORTSPERSONS

1. Notwithstanding the provisions of Articles 14 and 15, 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 sportsperson, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsperson in his capacity as such accrues not to the entertainer or sportsperson himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities, referred to in paragraph 1, performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by funds of either Contracting State, a local authority or public institution thereof.

ARTICLE 18PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar payments arising in a Contracting State and paid in consideration of past employment to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a local authority thereof shall be taxable only in that State.

ARTICLE 19GOVERNMENT SERVICE

1. (a) Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State, a statutory body or a local authority thereof to an individual in respect of services rendered to that State, body or authority shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of the funds created by, a Contracting State, a statutory body or a local authority thereof to an individual in respect of services rendered to that State, body or authority shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration and to pensions in respect of services rendered in connection with a business carried on by a Contracting State, a statutory body or a local authority thereof.

ARTICLE 20STUDENTS AND TRAINEES

Payments which a student or trainee, who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

ARTICLE 21PROFESSORS AND TEACHERS

1. An individual who has been resident in a Contracting State immediately before traveling to the other Contracting State, and who, at the invitation of a school, university, or other similar non-profit educational institution, remains in that other State for a period not exceeding two years from the date of his first arrival in that State, for the purpose of teaching or carrying out research, or both, in such educational institutions, shall be exempt from tax in that other State with respect to the remuneration received for such teaching or research.

2. The provisions of paragraph 1 of this Article shall not be applicable to the remuneration received for teaching or research work if such is not carried out for the public good, but principally for the private benefit of a specified person or specified persons.

ARTICLE 22DONATIONS TO CHARITABLE INSTITUTIONS

1. In the computation of the tax liability of a resident of a Contracting State for any taxable year under the income tax laws of that State, there shall be allowed as a deduction, subject to any conditions provided under the income tax laws of that State, donations to any organisation qualifying as a charitable institution under the income tax laws of the other Contracting State.

2. The competent authority of a Contracting State may consult the other Contracting State to determine whether an organisation qualifies as a charitable institution under the laws of that other State.

ARTICLE 23OTHER INCOME

1. Items of income of a resident of a Contracting State, , wherever arising, not dealt with in the foregoing articles of this Agreement shall be taxable only in that State.

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.

ARTICLE 24RELIEF FROM DOUBLE TAXATION

1. In the case of Mauritius, double taxation shall be eliminated as follows:

(a) Where a resident of Mauritius derives income from Barbados, the amount of tax on that income payable in Barbados in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident.

(b) Where a company which is a resident of Barbados pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5 per cent of the capital of the company paying the dividend, the credit shall take into account (in addition to any Barbados tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the Barbados tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid.

Provided that any credit allowed under subparagraphs (a) and (b) of this paragraph shall not exceed the Mauritius tax (as computed before allowing any such credit) which is appropriate to the profits or income derived from sources within Barbados.

2. In the case of Barbados, subject to the provisions of the laws of Barbados regarding the allowance as a credit against Barbados tax of tax payable in a territory outside Barbados (which shall not affect the general principle hereof), double taxation shall be eliminated as follows:

(a) tax payable under the laws of Mauritius and in accordance with this Agreement, whether directly or by deduction, on profits or income from sources within Mauritius (excluding, in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid), shall be allowed as a credit against any Barbados tax computed by reference to the same profits or income in respect of which the Mauritius tax is computed;

(b) in the case of a dividend paid by a company that is a resident of Mauritius to a company that is a resident of Barbados and which holds directly at least 5 percent of the capital of the company paying the dividend, the credit referred to in sub-paragraph (a) of this paragraph shall take into account the Mauritius tax payable by the company paying the dividend in respect of the profits out of which such dividend is paid;

(c) the credit, however, shall not exceed the part of the tax, as computed before the credit is given, which is appropriate to the income which may be taxed in Mauritius.

3. For the purposes of allowance as a credit, the tax payable in a Contracting State shall be deemed to include the tax which is otherwise payable in that Contracting State but has been reduced or waived by that State under its laws in existence at the date of entry into force of this Agreement in order to promote economic development and under any other law that may subsequently be enacted which is agreed by the competent authorities to be of a substantially similar character.

ARTICLE 25NON-DISCRIMINATION

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 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.

2. 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. 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 to its own residents.

3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 7 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 purpose 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.

4. 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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

5. This Article shall apply to taxes which are the subject of this Agreement.

ARTICLE 26MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.

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 a satisfactory 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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 27EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. 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 or authorities (including courts and administrative bodies) concerned with 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 Agreement. Such persons or authorities shall use the information only for the purposes herein mentioned. They may disclose the information in public court proceedings or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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; and

(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 (ordre public).

ARTICLE 28MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 29ENTRY INTO FORCE

1. Each Contracting State shall notify the other of the completion of the procedures required by its law for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of the two notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income for any income year beginning on or after the first day of July immediately following the date on which the Agreement enters into force; and

(b) in Barbados, on income derived during any calendar year, or fiscal period, as the case may be, beginning on or after the first day of January immediately following the date on which the Agreement enters into force.

ARTICLE 30TERMINATION

1. This Agreement shall remain in force indefinitely, but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than the 30th day of June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in Mauritius, on income for any income year beginning on or after the first day of July immediately following the calendar year in which the notice of termination is given; and

(b) in Barbados, in respect of taxes on income derived during any calendar year, or fiscal period, as the case may be, beginning on or after the first day of January immediately following the date on which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto by their respective Governments, have signed this Agreement.

Done at St. Kitts on the 28 day of September, 2004 in duplicate in the English language.

Hon. Khushal Chand Khushiram Hon. Owen S. Arthur
Minister of Industry, Financial Services and Corporate Affairs

Prime MinisterFor the Government of the Republic of MauritiusFor the Government of Barbados

________________

Double Taxation Avoidance Agreement (Democratic Socialist Republic of Sri Lanka)
Regulations 1996

[GN 36 of 1996 – 9 May 1996] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Democratic Socialist Republic of Sri Lanka) Regulations 1996.

2. In these regulations'”

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Democratic Socialist Republic of Sri Lanka pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 20 May 1997.]

_______________

SCHEDULE

[Regulation 2]

AGREEMENT

between the
Government of the Republic of Mauritius
and the
Government of Democratic Socialist Republic of Sri Lanka
for the
Avoidance of Double Taxation
and the
Prevention of Fiscal Evasion with Respect
to
Taxes on Income

The Government of the Republic of Mauritius and the Government of the Democratic Socialist Republic of Sri Lanka desiring to conclude an agreement for the avoidance of Double Taxation and the Prevention of Fiscal Evasion,

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property.

3. The existing taxes to which the Agreement shall apply are in particular:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in Sri Lanka:

the income tax, including the income tax based on the turnover of enterprises licensed by the Board of Investment,

(hereinafter referred to as "Sri Lanka tax").

4. The Agreement shall also apply to any other taxes of a substantially similar character which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

5. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws, and if it seems desirable to amend any Article of this Agreement, without affecting the general principles thereof, the necessary amendments may be made by mutual consent by means of an Exchange of Notes.

ARTICLE 3 – GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Sri Lanka" means the Democratic Socialist Republic of Sri Lanka, including any area outside the territorial sea of Sri Lanka which in accordance with international law has been or may hereafter be designated, under the laws of Sri Lanka concerning the Continental Shelf, as an area within which the rights of Sri Lanka with respect to the waters, sea bed and sub-soil and the natural resources may be exercised;

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Sri Lanka as the context requires;

(d) the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax purposes;

(e) the term "competent authority" means:

(i) in Mauritius, the Commissioner of Income Tax or his authorised representative; and

(ii) in Sri Lanka, the Commissioner General of Inland Revenue;

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "national" means any individual having the citizenship or nationality of a Contracting State and any legal person, partnership, association or other entity deriving its status as such from the laws in force in a Contracting State;

(i) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes; and

(j) the term "tax" means Mauritius tax or Sri Lanka tax as the context requires.

2. In the application of the provisions of this Agreement by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that State relating to the taxes which are the subject of this Agreement.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, 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. This term does not include any person who is liable to tax in that State in respect only of income from sources in that State.

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 in accordance with the following rules:

(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 home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has a habitual abode;

(c) if he has a habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;

(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.

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, then it shall be deemed to be a resident of the States in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of the enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site, construction, installation or assembly project, or an installation or drilling rig or ship used for the exploration or development of natural resources, as well as supervisory activities in connection therewith, but only where such site, project or activity lasts more than 183 days;

(b) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 183 days within any twelve month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

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:

(a) has and habitually exercises 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;

(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; or

(c) habitually secures orders in the first-mentioned State for the enterprise and other enterprises which are controlled by it or have a controlling interest in it.

6. Notwithstanding the preceding provisions of this Article, an insurance enterprise of a Contracting State shall, except with regard to reinsurance, 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.

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.

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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, is taxable in the Contracting State in which such property is situated.

2. 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, 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 form 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 independent personal services.

ARTICLE 7 – BUSINESS PROFITS

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:

(a) that permanent establishment; or

(b) sales within that other Contracting State of goods or merchandise of the same or a similar kind as those sold or other business activities of the same or a similar kind as those carried on, through that permanent establishment if the sale or the business activities had been made or carried on in that way with a view to avoiding taxation in that other State.

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 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 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 executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, of amounts charged, (otherwise than toward reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

4. In so far 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, 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.

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 of this Article, 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 of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

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

2. Notwithstanding the provisions of paragraph (1) of this Article profits derived from the operation of ships in international traffic may be taxed in the Contracting State in which such operation is carried on; but the tax so charged shall not exceed 50 per cent of the tax otherwise imposed by the internal laws of that State.

3. The provisions of paragraph 1 and 2 of this Article shall also apply to profits from participation in a pool, a joint business or an international operating agency.

4. If the place of effective management of a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.

5. For the purposes of this Article, the term "profits" shall be deemed to include '”

(a) profits from the leasing of ships or aircraft in international traffic, otherwise than on a bare boat charter basis; and

(b) profits from the leasing of containers and related equipment where such leasing is supplementary or incidental to the international operation of ships or aircraft.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where'”

(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.

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 Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.

ARTICLE 10DIVIDENDS

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.

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 to the beneficial owner shall not exceed:

(a) 10 per cent of the gross amount of the dividends if the beneficial owner is a company which holds at least 10 per cent of the capital of the company paying the dividends;

(b) 15 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall settle the mode of application of these limitations by mutual agreement.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

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 Contracting State of which the company making the distribution is a resident.

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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, no tax may be imposed on the beneficial owner in that other State on the dividends paid by the company except in so far as such dividends are paid to a resident of that other State or in so far 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 undistributed profits, even if the dividend paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, subject to the provisions of paragraph 3 of this Article, such interest may also be taxed in the Contracting State in which it arises and according to the law 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.

3. Interest arising in a Contracting State shall be exempt from tax in that State if it is derived and beneficially owned:

(a) by the Government or a local authority of the other Contracting State;

(b) by any bank, institution, body or board which is wholly and directly or indirectly owned by the Government or a local authority of the other State; or

(c) and arises in respect of any loan made, guaranteed or insured, or a credit extended, guaranteed or insured, by any credit agency or other financial institution as may be agreed upon from time to time between the Governments of the Contracting States.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures.

Penalty charges for late payment shall not be regarded as interest for the purposes of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

5. The provisions of paragraphs 1, 2 and 3 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

7. 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 a 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 beneficial owner is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.

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, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, computer programme, plan, secret formula or process, or for the use of, or the right to use, information concerning industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

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 a 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 or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or 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 a Contracting State a permanent establishment or a fixed base with which the right of property in respect of which the royalties are paid is effectively connected, 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.

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 royalties paid, 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 payment shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose 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 taxed in that other State.

3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State.

4. Gains derived by a resident of one of the Contracting States from the alienation of shares in a company, the assets of which consist wholly or principally of immovable property in the other Contracting State of a kind referred to in Article 6, may be taxed in that other State.

5. Gains from the alienation of any property other than that referred to in the preceding paragraphs shall be taxable only in the Contracting State of which the alienator is a resident.

6. The term "alienation" means the sale, exchange, transfer, or relinquishment of the property or the extinguishment of any rights therein or the compulsory acquisition thereof under any law in force in the respective Contracting States.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities or he is present in that other State for a period or periods exceeding in the aggregate 183 days in any twelve month period. If he has such a fixed base or is present in that other State for the aforesaid period or periods, the income may be taxed in the other State but only so much of it as is attributable to that fixed base or is derived in that other State during the aforesaid period or periods.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16,18,19 and 20, 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.

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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period; and

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16 – DIRECTORS' FEES

1. 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.

2. Salaries, wages and other similar remuneration derived by a resident of a Contracting State in his capacity as an official in a top-level managerial position of a company which is a resident of the other Contracting State may be taxed in that other State.

ARTICLE 17 – ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, income derived by an entertainer, such as a theatre, motion picture, radio or television artiste or a musician, or by a sportsman, from his personal activities as such, may be taxed in the Contracting State in which such activities are exercised.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities, referred to in paragraph 1, performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by funds of either Contracting State, a local authority or public institution thereof.

ARTICLE 18 – PENSIONS AND ANNUITIES

1. Any pension (other than a pension of the kind referred to in paragraph 2 of Article 19) and any annuity, derived from sources within a Contracting State by an individual who is a resident of the other Contracting State and is subject to tax on the whole or portion thereof in the other State, shall be exempt from tax in the first-mentioned State to the extent that it is subjected to tax in the other State.

2. The term "annuity" as used in this Article means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

3. Notwithstanding the provisions of paragraph 1 of this Article, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a local authority thereof shall be taxable only in that State.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by, or out of funds created by one of the Contracting States, a local authority or statutory body thereof to an individual in respect of services rendered to that State, authority or body in the discharge of governmental functions shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident solely for the purpose of rendering such services.

2. (a) Any pension paid by, or out of funds created by a Contracting State, a local authority or statutory body thereof to an individual in respect of services rendered to that State or authority or body in the discharge of governmental functions shall be taxable only in that State.

(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident and a national of that State.

3. The provisions of Articles 15,16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State, local authority or statutory body thereof.

ARTICLE 20 – TEACHERS AND RESEARCHERS

1. Notwithstanding the provisions of Article 15, a professor, teacher or researcher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college, school or other educational institution in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State, provided that such remuneration is derived by him from outside that State and such remuneration is subject to tax in the other State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 21 – STUDENTS

Where a student, who is a resident of one of the Contracting States or who was a resident of that State immediately before visiting the other Contracting State and who is temporarily present in that other State solely for the purpose of his education, receives payments from sources outside that other State for the purpose of his maintenance or education, those payments shall be exempt from tax in that other State.

ARTICLE 22 – OTHER INCOME

1. Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income 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 a right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this Agreement and arising in the other Contracting State may also be taxed in that other State.

ARTICLE 23 – ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) Subject to the other subparagraphs of this paragraph and to the provisions of the laws of Mauritius regarding the allowance as a credit against Mauritius tax of tax payable in a territory outside Mauritius (which shall not affect the general principle hereof), where a resident of Mauritius derives profits or income from sources within Sri Lanka and which, under the laws of Sri Lanka and in accordance with this Agreement are taxable or may be taxed in Sri Lanka, whether directly or by deduction, Mauritius shall allow the Sri Lanka tax payable as a reference to the same profits or income by reference to which the Sri Lanka tax payable is computed.

(b) In the case of a dividend, the credit referred to in subparagraph (a) shall only take into account such tax in respect thereof as is additional to any tax payable in Sri Lanka by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient of the dividend without any reference to any tax so payable.

(c) Where a company which is a resident of Sri Lanka pays a dividend to a company which is a resident of Mauritius and which controls, directly or indirectly, at least 10 per cent of the capital of the company paying the dividend, the credit shall take into account (in addition to any Sri Lanka tax for which credit may be allowed under the provisions of subparagraphs (a) and (b) of this paragraph) the Sri Lanka tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid. Provided that such credit shall not exceed the Mauritius tax (as computed before allowing any such credit), which is attributable to the income derived from sources within Sri Lanka.

2. In the case of Sri Lanka:

(a) Subject to the other subparagraphs of this paragraph and to the provisions of the laws of Sri Lanka regarding the allowance as a credit against Sri Lanka tax of tax payable in a territory outside Sri Lanka (which shall not affect the general principle hereof), where a resident of Sri Lanka derives profits or income from sources within Mauritius and which, under the laws of Mauritius and in accordance with this Agreement are taxable or may be taxed in Mauritius, whether directly or by deduction, Sri Lanka shall allow the Mauritius tax payable as a credit against any Sri Lanka tax computed by reference to the same profits or income by reference to which the Mauritius tax payable is computed.

(b) In the case of a dividend, the credit referred to in subparagraph (a) shall only take into account such tax in respect thereof as is additional to any tax payable in Mauritius by the company on the profits out of which the dividend is paid and is ultimately borne by the recipient of the dividend without any reference to any tax so payable.

(c) Where a company which is a resident of Mauritius pays a dividend to a company which is a resident of Sri Lanka and which controls, directly or indirectly, at least 10 per cent of the capital of the company paying the dividend, the credit shall take into account (in addition to any Mauritius tax for which credit may be allowed under the provisions of subparagraphs (a) and (b) of this paragraph) the Mauritius tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid. Provided that such credit shall not exceed the Sri Lanka tax (as computed before allowing any such credit), which is attributable to the income derived from sources within Mauritius.

3. For the purposes of allowance as a credit, the tax payable in Sri Lanka or Mauritius as the context requires, shall be deemed to include the tax which is otherwise payable in either of the two Contracting States but has been reduced or waived by either State in order to promote its economic development.

4. A subsidy or grant given by one of the Contracting States to a resident of the other Contracting State under the laws of, and for the purpose of promoting economic development in, the first-mentioned State, shall not be taxable in the other State.

ARTICLE 24 – NON-DISCRIMINATION

1. The 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 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.

2. 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.

3. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

4. Nothing in this Article shall 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 to its own resident.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

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 States.

ARTICLE 26 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement, in so far as the taxation thereunder is not contrary to the agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information so exchanged 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 or authorities (including courts or 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 this Agreement. 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. The competent authorities shall through consultation, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of information shall be made, including, where appropriate, exchanges of information regarding tax avoidance.

2. In no case shall the provisions of paragraph 1 of this Article be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

ARTICLE 27 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 – ENTRY INTO FORCE

1. Each of the Contracting Parties shall notify to the other the completion of the procedures required by its law for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the date upon which this Agreement enters into force; and

(b) in Sri Lanka, in respect of income derived on or after 1 April of the year next following that of the entry into force of the Agreement.

ARTICLE 29 – TERMINATION

1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than 30 June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in Mauritius, in respect of income for any income year beginning on or after the first day of July next following the calendar year in which such notice is given; and

(b) in Sri Lanka, in respect of income derived on or after 1 April of the year next following that in which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE in duplicate at London this twelfth day of March one thousand nine hundred and ninety six in the English and Sinhala Languages, both texts being equally authentic. In the case of divergence of interpretation the English text shall prevail.

Rundheersing Bheenick Sarath Kusum Wickreme Singhe
For the Government of the Republic of
Mauritius
For the Government of the Democratic
Socialist Republic of Sri Lanka

______________

Double Taxation Avoidance Agreement (Federal
Republic of Germany) Regulations 2012

[GN 210 of 2012 – 1 December 2012] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Federal Republic of Germany) Regulations 2012.

2. In these regulations –

“Act” means the Income Tax Act;

“Agreement” means the agreement entered by the Government of Mauritius with the Federal Republic of Germany pursuant to section 76 of the Act and set out in the Schedule.

3. - 4. –

5. Any act or thing done, or document executed, under the Double Taxation Agreement (Germany) Regulations 1978 shall, at 1 December 2012, be deemed to have been done or executed under these regulations.

[Agreement c.i.o. on 7 December 2012.][General Notice No. 106 of 2013.]

–––––––––––––––

SCHEDULE

[Regulation 2]

AGREEMENT BETWEEN THE REPUBLIC OF MAURITIUS AND THE FEDERAL REPUBLIC OF GERMANY FOR THE AVOIDANCE OF DOUBLE TAXATION AND OF TAX EVASION WITH RESPECT TO TAXES ON INCOME

The Republic of Mauritius

and

The Federal Republic of Germany,

Desiring to conclude an Agreement for the avoidance of double taxation and of tax evasion with respect to taxes on income,

Have agreed as follows:

ARTICLE 1 – PERSONS COVERED

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, a Land, a political subdivision or local authority thereof, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed 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, as well as taxes on capital appreciation.

3. The existing taxes to which this Agreement shall apply are in particular:

(a) in the Republic of Mauritius:

the income tax,

(hereinafter referred to as “Mauritius tax”);

(b) in the Federal Republic of Germany:

(i) the income tax (Einkommensteuer),

(ii) the corporation tax (Körperschaftsteuer), and

(iii) the trade tax (Gewerbesteuer),

including the supplements levied thereon

(hereinafter referred to as “German tax”).

4. The Agreement shall apply also to any identical or substantially similar taxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their respective taxation laws.

ARTICLE 3 – GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term “Mauritius” means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the sovereign rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term “Federal Republic of Germany” means the territory of the Federal Republic of Germany, as well as the area of the sea-bed, its sub-soil and the superjacent water column adjacent to the territorial sea, insofar as the Federal Republic of Germany exercises therein sovereign rights and jurisdiction in conformity with international law and its national legislation for the purpose of exploring, exploiting, conserving and managing the living and non-living natural resources;

(c) the terms “a Contracting State” and “the other Contracting State” mean Mauritius or the Federal Republic of Germany, as the context requires;

(d) the term “person” includes an individual, a company, a trust and any other body of persons;

(e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;

(f) the term “enterprise” applies to the carrying on of any business;

(g) the term “business” includes the performance of professional services and of other activities of an independent character;

(h) 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;

(i) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise that has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(j) the term “national” means:

(i) in respect of the Federal Republic of Germany:

any German within the meaning of the Basic Law for the Federal Republic of Germany and any legal person, partnership and association deriving its status as such from the laws in force in Germany;

(ii) in respect of Mauritius:

any individual having the citizenship of Mauritius and any legal person, partnership (société) or association deriving its status as such from the laws in force in Mauritius;

(k) the term “competent authority” means:

(i) in the case of Mauritius, the Minister to whom the responsibility for the subject of finance is assigned or his authorised representative;

(ii) in the case of the Federal Republic of Germany, the Federal Ministry of Finance or the agency to which it has delegated its powers;

(l) the term “tax” means Mauritius tax or German tax, as the context requires.

2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, the term “resident of a Contracting State” means:

(a) in the case of Mauritius,

(i) an individual who has his domicile in Mauritius, and

(ii) a company which is incorporated in Mauritius and has its place of effective management there:

provided that they are liable to general Mauritius tax.

(b) in the case of the Federal Republic of Germany, the term “resident” means any person who, under the laws of Federal Republic of Germany, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes the Federal Republic of Germany, a Land and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in the Federal Republic of Germany in respect only of income from sources in the Federal Republic of Germany.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him. If he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term “permanent establishment” shall include especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop; and

(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term “permanent establishment” also includes:

(a) a building site or construction or installation project or supervisory activity in connection therewith only if it lasts more than twelve months;

(b) an installation or structure used for the exploration of natural resources, only if such use lasts more than twelve months.

4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(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;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent status to whom paragraph 6 applies is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for 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.

6. 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

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.

2. 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, 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 and aircraft shall not be regarded as immovable property.

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

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.

ARTICLE 7 – BUSINESS PROFITS

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. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. In so far 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, nothing in paragraph 2 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.

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. This Article shall also apply to income from participation in a partnership. It shall further apply to remuneration received by a partner from the partnership for activities in the service of the partnership and for the granting of loans or the provisions of assets, where such remuneration is attributable under the tax law of the Contracting State in which the permanent establishment is situated to the income derived by a partner from that permanent establishment.

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

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits from the operation of ships or 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. For the purposes of this Article the term “profits from the operation of ships or aircraft in international traffic” shall include profits from:

(a) the occasional rental of ships or aircraft on a bare-boat basis and

(b) the use or rental of containers (including trailers and ancillary equipment used for transporting the containers), if these activities pertain to the operation of ships or aircraft in international traffic.

3. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

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.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10 – DIVIDENDS

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.

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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends;

(b) 15 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

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 other income which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident and distributions on certificates of an investment fund or investment trust.

4. The provisions of paragraphs 1 and 2 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 and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such a case, the provisions of Article 7 shall apply.

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 in so far as such dividends are paid to a resident of that other State or in so far as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall, if the recipient is the beneficial owner of the interest, be taxable only in that other State.

2. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. The term “interest” shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

3. The provisions of paragraph 1 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, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

4. 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.

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 and films, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

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 a Contracting State a permanent establishment with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the State in which the permanent establishment is situated.

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 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 Agreement.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise), may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains derived by a resident of a Contracting State from the alienation of shares, participation, or other rights in the capital of a company or an interest in a partnership which is a resident of the other Contracting State may be taxed in that other Contracting State.

5. Gains from the alienation of any property other than that referred to in paragraphs 1 to 4, shall be taxable only in the Contracting State of which the alienator is a resident.

6. Where an individual who was a resident of a Contracting State for a period of 5 years or more has become a resident of the other Contracting State, paragraph 5 shall not prevent the first-mentioned State from taxing under its domestic law the capital appreciation of shares in a company resident in the first-mentioned State for the period of residency of that individual in the first-mentioned State. In such case, the appreciation of capital taxed in the first-mentioned State shall not be included in the determination of the subsequent appreciation of capital by the other State.

ARTICLE 14 – INCOME FROM EMPLOYMENT

1. Subject to the provisions of Articles 15, 17 and 18, 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve-month period commencing or ending in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise which operates the ship or aircraft is situated.

ARTICLE 15 – DIRECTORS’ FEES

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.

ARTICLE 16 – ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 7 and 14, 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.

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 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Paragraphs 1 and 2 shall not apply to income accruing from the exercise of activities by an entertainer or a sportsman in a Contracting State where the visit to that State is financed entirely or mainly from public funds of the other State, a Land, a political subdivision or a local authority thereof or by an organisation which in that other State is recognised as a charitable organisation. In such case, the income may be taxed only in the Contracting State of which the entertainer or sportsman is a resident.

ARTICLE 17 – PENSIONS, ANNUITIES AND SIMILAR PAYMENTS

1. Subject to the provisions of paragraph 2 of Article 18, pensions, annuities and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State, a Land, a political subdivision or a local authority thereof shall be taxable only in that State.

3. The term “annuities” means certain amounts payable periodically at stated times, for life or for a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money’s worth.

ARTICLE 18 – GOVERNMENT SERVICE

1. (a) Salaries, wages, and other similar remuneration, other than a pension, paid by a Contracting State, a Land, a political subdivision or local authority thereof or statutory body to an individual in respect of services rendered to that State, Land, political subdivision or local authority or statutory body shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State, a Land, a political subdivision or local authority thereof or statutory body to an individual in respect of services rendered to that State, Land, political subdivision, local authority or statutory body shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State, a Land, a political subdivision or a local authority thereof or statutory body.

ARTICLE 19 – PROFESSORS AND TEACHERS

1. An individual who visits a Contracting State at the invitation of that State or of a university, college, school, museum or other cultural institution of that State or under an official programme of cultural exchange for a period not exceeding two years solely for the purpose of teaching, giving lectures or carrying out research at such institution and who is, or was immediately before that visit, a resident of the other Contracting State shall be exempt from tax in the first-mentioned State on his remuneration for such activity, provided that such remuneration is derived by him from outside that State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 20 – STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purposes of his maintenance, education or training.

ARTICLE 21 – OTHER INCOME

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income other than income from immoveable 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 and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

ARTICLE 22 – SPECIAL PROVISIONS

1. A prerequisite for relief from German tax is that a person resident in Mauritius proves that it was not the main purpose or one of the main purposes of its business or of the conduct of its business or of the acquisition or maintenance by it of the shareholding or other property from which the income in question is derived to obtain any of such benefits.

2. A company which is a resident of Mauritius is entitled to the benefits of this Agreement if such company is a “qualified company”. Such company is a “qualified company” provided that the company can give evidence that:

(a) its capital is beneficially owned directly exclusively by Mauritius or by any political subdivision or local authority thereof or by individuals being residents of Mauritius or by individuals being residents of States or jurisdictions, in which an Agreement for the Avoidance of Double Taxation with respect to Taxes on Income with the Federal Republic of Germany is applicable, and it is controlled by the aforementioned residents, and

(b) more than 50 per cent of its gross income is not used, directly or indirectly, to meet liabilities (including for interest or royalties) to persons who are residents of a State or jurisdiction, in which no Agreement for the Avoidance of Double Taxation with respect to Taxes on Income with the Federal Republic of Germany is applicable.

ARTICLE 23 – ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) Where a resident of Mauritius derives income from the Federal Republic of Germany the amount of tax on that income payable in the Federal Republic of Germany in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident,

(b) Where a company which is a resident of the Federal Republic of Germany pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5 per cent of the capital of the company paying the dividend, the credit shall take into account (in addition to any German tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the German tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid:

provided that any credit allowed under subparagraphs (a) and (b) shall not exceed the Mauritius tax (as computed before allowing any such credit), which is appropriate to the profits or income derived from sources within the Federal Republic of Germany.

2. In the case of the Federal Republic of Germany:

(a) Subject to the provisions of German tax law regarding credit for foreign tax, there shall be allowed as a credit against German tax payable in respect of income which, according to this Agreement, may be taxed in Mauritius, the Mauritius tax paid under the laws of Mauritius and in accordance with this Agreement.

(b) Where in accordance with any provisions of the Agreement, income derived by a resident of the Federal Republic of Germany is exempt from tax in the Federal Republic of Germany, the Federal Republic of Germany may nevertheless in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

ARTICLE 24 – NON-DISCRIMINATION

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.

2. Stateless persons who are residents of a Contracting State shall not be subjected in either 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 the State concerned in the same circumstances are or may be subjected.

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. 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 only to its own residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 4 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 purpose 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.

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 be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 a satisfactory 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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 Agreement. They may also consult together for the elimination of double taxation in cases not provided for in the Agreement.

4. The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding paragraphs.

ARTICLE 26 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, of a Land or a political subdivision or local authority, in so far as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 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 or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures for the supply of information at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because it relates to ownership interests in a person.

ARTICLE 27 – ASSISTANCE IN THE COLLECTION OF TAXES

1. The Contracting States shall lend assistance to each other in the collection of revenue claims. This assistance is not restricted by Articles 1 and 2. The competent authorities of the Contracting States may by mutual agreement settle the mode of application of this Article.

2. The term “revenue claim” as used in this Article means an amount owed in respect of taxes of every kind and description imposed on behalf of a Contracting State, a Land, a political subdivision or local authority thereof, insofar as the taxation thereunder is not contrary to this Agreement or any other instrument to which the Contracting States are parties, as well as interest, administrative penalties and costs of collection or conservancy related to such amount.

3. When a revenue claim of a Contracting State is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of collection by the competent authority of the other Contracting State. That revenue claim shall be collected by that other State in accordance with the provisions of its laws applicable to the enforcement and collection of its own taxes as if the revenue claim were a revenue claim of that other State.

4. When a revenue claim of a Contracting State is a claim in respect of which that State may, under its law, take measures of conservancy with a view to ensure its collection, that revenue claim shall, at the request of the competent authority of that State, be accepted for purposes of taking measures of conservancy by the competent authority of the other Contracting State. That other State shall take measures of conservancy in respect of that revenue claim in accordance with the provisions of its laws as if the revenue claim were a revenue claim of that other State even if, at the time when such measures are applied, the revenue claim is not enforceable in the first-mentioned State or is owed by a person who has a right to prevent its collection.

5. Notwithstanding the provisions of paragraphs 3 and 4, a revenue claim accepted by a Contracting State for purposes of paragraph 3 or 4 shall not, in that State, be subject to the time limits or accorded any priority applicable to a revenue claim under the laws of that State by reason of its nature as such. In addition, a revenue claim accepted by a Contracting State for the purposes of paragraph 3 or 4 shall not, in that State, have any priority applicable to that revenue claim under the laws of the other Contracting State.

6. Proceedings with respect to the existence, validity or the amount of a revenue claim of a Contracting State shall not be brought before the courts or administrative bodies of the other Contracting State.

7. Where, at any time after a request has been made by a Contracting State under paragraph 3 or 4 and before the other Contracting State has collected and remitted the relevant revenue claim to the first-mentioned State, the relevant revenue claim ceases to be:

(a) in the case of a request under paragraph 3, a revenue claim of the first-mentioned State that is enforceable under the laws of that State and is owed by a person who, at that time, cannot, under the laws of that State, prevent its collection, or

(b) in the case of a request under paragraph 4, a revenue claim of the first-mentioned State in respect of which that State may, under its laws, take measures of conservancy with a view to ensure its collection,

the competent authority of the first-mentioned State shall promptly notify the competent authority of the other State of that fact and, at the option of the other State, the first mentioned State shall either suspend or withdraw its request.

8. In no case shall the provisions of this Article be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(b) to carry out measures which would be contrary to public policy (ordre public);

(c) to provide assistance if the other Contracting State has not pursued all reasonable measures of collection or conservancy, as the case may be, available under its laws or administrative practice;

(d) to provide assistance in those cases where the administrative burden for that State is clearly disproportionate to the benefit to be derived by the other Contracting State.

ARTICLE 28 – PROCEDURAL RULES FOR TAXATION AT SOURCE

1. If in one of the Contracting States the taxes on dividends, interest, royalties or other items of income derived by a person who is a resident of the other Contracting State are levied by withholding at source, the right of the first-mentioned State to apply the withholding of tax at the rate provided under domestic law shall not be affected by the provisions of this Agreement. The tax withheld at source shall be refunded on application by the taxpayer if and to the extent that it is reduced by this Agreement or ceases to apply.

2. Refund applications must be submitted by the end of the fourth year following the calendar year in which the withholding tax was applied to the dividends, interest, royalties or other items of income.

3. Notwithstanding paragraph 1, each Contracting State shall provide for procedures to the effect that payments of income subject under this Agreement to no tax or only to reduced tax in the State of source may be made without deduction of tax or with deduction of tax only at the rate provided in the relevant Article.

4. The Contracting State in which the items of income arise may ask for a certificate in respect of the residence of the applicant from the competent authority of the other Contracting State.

5. The competent authorities may by mutual agreement implement the provisions of this Article and if necessary establish other procedures for implementation of tax reductions or exemptions provided for under this Agreement.

ARTICLE 29 – APPLICATION OF THE AGREEMENT IN SPECIAL CASES

This Agreement shall not be interpreted to mean that a Contracting State is prevented from applying its domestic legal provisions on the prevention of tax evasion or tax avoidance. If the foregoing provision results in double taxation, the competent authorities shall consult each other pursuant to paragraph 3 of Article 25 on how to avoid double taxation.

ARTICLE 30 – MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 31 – PROTOCOL

The attached Protocol shall be an integral part of this Agreement.

ARTICLE 32 – ENTRY INTO FORCE

1. This Agreement shall be ratified and the instruments of ratification shall thereafter be exchanged as soon as possible in Berlin.

2. The Agreement shall enter into force on the day of the exchange of the instruments of ratification and shall have effect in both Contracting States:

(a) in the case of taxes withheld at source, in respect of amounts paid on or after the first day of January of the calendar year next following that in which the Agreement entered into force; and

(b) in the case of other taxes, in respect of taxes levied for periods beginning on or after the first day of January of the calendar year next following that in which the Agreement entered into force.

3. Upon entry into force of this Agreement, the Agreement between Mauritius and the Federal Republic of Germany for the avoidance of double taxation with respect to taxes on income and capital and for the encouragement of mutual trade and investment signed on the fifteenth day of March 1978 shall expire and cease to have effect in respect of all taxes for which this Agreement, according to paragraph 2, has effect.

ARTICLE 33 – TERMINATION

This Agreement shall remain in force for an unlimited period but either of the Contracting States may, on or before the thirtieth day of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force, give the other Contracting State, through diplomatic channels, written notice of termination and, in such event, this Agreement shall cease to have effect:

(a) in the case of taxes withheld at source, in respect of amounts paid on or after the first day of January of the calendar year next following that in which notice of termination is given; and

(b) in the case of other taxes, in respect of taxes levied for periods beginning on or after the first day of January of the calendar year next following that in which notice of termination is given.

The date of receipt of such notice by the other Contracting State shall determine the date of termination of this Agreement.

Done at Port Louis this seventh day of October of the year two thousand and eleven in two originals, each in the English and German languages, both texts being equally authentic.

................................................................... ...............................................

Hon. Charles Gaëtan Xavier-Luc DUVAL H.E. Dr. Hans-Dieter STELL

Vice-Prime Minister, Minister of Finance Ambassador

and Economic Development

For the For the

Republic of Mauritius Federal Republic of Germany

PROTOCOL

TO THE AGREEMENT

BETWEEN THE REPUBLIC OF MAURITIUS

AND

THE FEDERAL REPUBLIC OF GERMANY

For the Avoidance of Double Taxation and of Tax Evasion with respect to Taxes on Income

signed on 7 October 2011

The Republic of Mauritius and the Federal Republic of Germany have in addition to the Agreement of 7 October 2011 for the Avoidance of Double Taxation and of Tax Evasion with respect to Taxes on Income agreed on the following provisions, which shall form an integral part of the said Agreement:

1. With reference to Article 4:

The term “general Mauritius tax” means the Mauritius tax regime applicable to all taxpayers as distinguished to special tax regimes, if any, providing for preferential tax treatment.

2. With reference to Articles 4 and 22:

It is understood that the status of a company as a resident of Mauritius and as a qualified company is conditional on confirmation by the competent authority of Mauritius that the prerequisites mentioned in sub-paragraph (a) of paragraph 1 of Article 4 and paragraph 2 of Article 22 have been fulfilled. In case of disagreement between the competent authorities of the two Contracting States, the procedures under Article 25 shall be applied.

3. With reference to Articles 6 to 21:

Where under any provision of this Agreement income arising in a Contracting State is relieved in whole or in part from tax in that 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 State and not by reference to the full amount thereof, then any relief provided by the provisions of this Agreement shall apply only to so much of the income as is taxed in the other Contracting State.

4. With reference to Article 7:

(a) Where an enterprise of a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received therefore by the enterprise but only on the basis of the amount which is attributable to the actual activity of the permanent establishment for such sales or business.

(b) In the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State in which it is situated. Profits derived from the supply of goods to that permanent establishment or profits related to the part of the contract which is carried out in the Contracting State in which the head office of the enterprise is situated shall be taxable only in that State.

(c) Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 of the Agreement apply.

5. With reference to Articles 10 and 11:

Notwithstanding the provisions of Articles 10 and 11 of this Agreement, dividends and interest may be taxed in the Contracting States in which they arise, and according to the law of that State,

(a) if they are derived from rights or debt claims carrying a right to participate in profits, including income derived by a silent partner (“stiller Gesellschafter”) from his participation as such, or from a loan with an interest rate linked to borrower’s profit (“partiarisches Darlehen”) or from profit sharing bonds (“Gewinnobligationen”) within the meaning of the tax law of the Federal Republic of Germany and

(b) under the condition that they are deductible in the determination of profits of the debtor of such income.

6. With reference to Article 18:

(a) It is understood that “statutory body” is a legal entity established under public law and financed from public funds.

(b) The provisions of paragraphs 1 and 2 of Article 18 of the Agreement shall also apply in respect of salaries, wages and other similar remuneration and pensions paid to individuals in respect of services rendered to the Goethe Institute, the German Academic Exchange Service (“Deutscher Akademischer Austauschdienst”) or to other comparable institutions mutually agreed by the Contracting States. If such remuneration is not taxed in the State where the institution was founded, the provisions of Article 14 shall apply.

7. With reference to Articles 4 and 26:

It is understood that the competent authority of Mauritius will provide information according to Article 26 regarding persons whether or not they are liable to general Mauritius tax, especially companies holding a Category 2 Global Business Licence.

8. With reference to Article 26:

Insofar as personal data are supplied under Article 26, the following additional provisions shall apply:

(a) The receiving agency may use such data in compliance with paragraph 2 of Article 26 only for the purpose stated by the supplying agency and shall be subject to the conditions prescribed by the supplying agency.

(b) Notwithstanding the provisions of paragraph 2 of Article 26, the information may be used for other purposes, if under the law of both States it may be used for these other purposes and the competent authority of the supplying State has agreed to this use. Use for other purposes without the prior approval of the supplying State is permissible only if it is needed to avert in the individual case at hand an imminent threat to a person of loss of life, bodily harm or loss of liberty, or to protect significant assets and there is danger inherent in any delay. In such a case the competent authority of the supplying State must be asked without delay for retroactive authorisation of the change in use. If authorisation is refused, the information may no longer be used for the other purpose; any damage which has been caused by the change in use of the information must be compensated.

(c) The supplying agency shall be obliged to ensure that the data to be supplied are accurate and their foreseeable relevance within the meaning of the first sentence of paragraph 1 of Article 26 and that they are proportionate to the purpose for which they are supplied. Data are foreseeably relevant if in the concrete case at hand there is the serious possibility that the other Contracting State has a right to tax and there is nothing to indicate that the data are already known to the competent authority of the other Contracting State or that the competent authority of the other Contracting State would know about the taxable object without the information. If it emerges that inaccurate data or data which should not have been supplied have been supplied, the receiving agency shall be informed of this without delay. That agency shall be obliged to correct or erase such data without delay. If data have been supplied spontaneously, the receiving agency shall check without delay whether the data are needed for the purpose for which they were supplied. In the event that the data supplies, is not needed the receiving agency shall immediately erase the data.

(d) The receiving agency shall on request inform the supplying agency on a case-by-case basis for the purpose of informing the person concerned about the use of the supplied data and the results achieved thereby.

(e) The receiving agency shall inform the person concerned of the data collected by the supplying agency, unless the data were supplied spontaneously. The person concerned need not be informed if and as long as on balance it is considered that the public interest in not informing him outweighs his right to be informed.

(f) Upon application the person concerned shall be informed of the supplied data relating to him and of the use to which such data are to be put. The second sentence of paragraph (e) shall apply accordingly.

(g) The receiving agency shall bear liability under its domestic laws in relation to any person suffering unlawful damage in connection with the supply of data under the exchange of data pursuant to this Agreement. In relation to the damaged person, the receiving agency may not plead to its discharge that the damage had been caused by the supplying agency.

(h) The supplying and the receiving agencies shall be obliged to keep official records of the supply and receipt of personal data.

(i) Supplied personal data shall be erased once they are no longer required for the purpose for which they were supplied.

(j) The supplying and the receiving agencies shall be obliged to take effective measures to protect the personal data supplied against unauthorised access, unauthorised alteration and unauthorised disclosure.

Done at Port Louis this seventh day of October of the year two thousand and eleven in two originals, each in the English and German languages, both texts being equally authentic.

....................................................................

Hon. Charles Gaëtan Xavier-Luc DUVAL

 

Vice-Prime Minister, Minister of Finance and Economic Development

 

...................................................................

H. E. Dr. Hans-Dieter STELL

 

Ambassador

 

For the Republic of Mauritius

 

For the Federal Republic of Germany

ABKOMMEN

ZWISCHEN

DER REPUBLIK MAURITIUS

UND DER BUNDESREPUBLIK DEUTSCHLAND

ZUR VERMEIDUNG DER DOPPELBESTEUERUNG UND DER STEUERVERKURZUNG

AUF DEM GEBIET DER STEUERN VOM EINKOMMEN

DIE REPUBLIK MAURITIUS UND

DIE BUNDESREPUBLIK DEUTSCHLAND

von dem Wunsch geleitet, ein Abkommen zur Vermeidung der Doppelbesteuerung und der Steuerverkurzung auf dem Gebiet der Steuern vom Einkommen zu schlieben - sind wie folgt ubereingekommen –

ARTIKEL 1 – UNTER DAS ABKOMMEN FALLENDE PERSONEN

Dieses Abkommen gilt fur Personen, die in einem Vertragsstaat oder in beiden Vertragsstaaten ansässig sind.

ARTIKEL 2 – UNTER DAS ABKOMMEN FALLENDE STEUERN

(1) Dieses Abkommen gilt, ohne Rucksicht auf die Art der Erhebung, fur Steuern vom Einkommen, die fur Rechnung eines Vertragsstaats, eines seiner Lander oder einer ihrer Gebietskorperschaften erhoben werden.

(2) Als Steuern vom Einkommen gelten alle Steuern, die vom Gesamteinkommen oder von Teilen des Einkommens erhoben werden, einschlieslich der Steuern vom Gewinn aus der VerausZerung beweglichen oder unbeweglichen Vermogens, der Lohnsummensteuern sowie der Steuern vom Vermogenszuwachs.

(3) Zu den zurzeit bestehenden Steuern, fur die dieses Abkommen gilt, gehoren insbesondere –

(a) in der Republik Mauritius –

die Einkommensteuer

(im Folgenden als “mauritische Steuer” bezeichnet);

(b) in der Bundesrepublik Deutschland –

(i) die Einkommensteuer

(ii) die Körperschaftsteuer und

(iii) die Gewerbesteuer,

einschlieBlich der hierauf erhobenen Zuschläge (im Folgenden als “deutsche Steuer” bezeichnet);

(4) Das Abkommen gilt auch für alle Steuern gleicher oder im Wesentlichen ähnlicher Art, die nach der Unterzeichnung des Abkommens neben den bestehenden Steuern oder an deren Stelle erhoben werden. Die zuständigen Behörden der Vertragsstaaten teilen einander die in ihren Steuergesetzen eingetretenen wesentlichen änderungen mit.

ARTIKEL 3 – ALLGEMEINE BEGRIFFSBESTIMMUNGEN

(1) Im Sinne dieses Abkommens, wenn der Zusammenhang nichts anderes erfordert,

(a) bedeutet der Ausdruck “Mauritius” die Republik Mauritius und umfasst

(i) alle Hoheitsgebiete und Inseln, die nach mauritischem Recht den Staat Mauritius bilden,

(ii) das Küstenmeer von Mauritius und

(iii) alle Gebiete auberhalb des Küstenmeers von Mauritius, die in übereinstimmung mit dem Völkerrecht nach mauritischem Recht als ein Gebiet, einschlie?lich des Kontinentalsockels, bezeichnet wurden oder künftig bezeichnet werden, in dem die Rechte von Mauritius bezüglich des Meeres, des Meeresbodens und des Meeresuntergrunds sowie ihrer natürlichen Ressourcen ausgeübt werden können.

(b) bedeutet der Ausdruck “Bundesrepublik Deutschland” das Hoheitsgebiet der Bundesrepublik Deutschland sowie das an das Küstenmeer angrenzende Gebiet des Meeresbodens, des Meeresuntergrunds und der darüber befindlichen Wassersäule, soweit die Bundesrepublik Deutschland dort in übereinstimmung mit dem Völkerrecht und ihren innerstaatlichen Rechtsvorschriften souveräne Rechte und Hoheitsbefugnisse zum Zwecke der Erforschung, Ausbeutung, Erhaltung und Bewirtschaftung der lebenden und nicht lebenden natürlichen Ressourcen ausübt;

(c) bedeuten die Ausdrücke “ein Vertragsstaat” und “der andere Vertragsstaat” je nach dem Zusammenhang Mauritius oder die Bundesrepublik Deutschland;

(d) umfasst der Ausdruck “Person” natürliche Personen, Gesellschaften, Trusts und alle anderen Personenvereinigungen;

(e) bedeutet der Ausdruck “Gesellschaft” juristische Personen oder Rechtsträger, die für die Besteuerung wie juristische Personen behandelt werden;

(f) bezieht sich der Ausdruck “Unternehmen” auf die Ausübung einer “Geschäftstätigkeit”

(g) schlie?t der Ausdruck “Geschäftstätigkeit” auch die Ausübung einer freiberuflichen oder sonstigen selbständigen Tätigkeit ein;

(h) bedeuten die Ausdrücke “Unternehmen eines Vertragsstaats” und “Unternehmen des anderen Vertragsstaats” ein Unternehmen, das von einer in einem Vertragsstaat ansässigen Person betrieben wird, beziehungsweise ein Unternehmen, das von einer im anderen Vertragsstaat ansässigen Person betrieben wird;

(i) bedeutet der Ausdruck “internationaler Verkehr” jede Beförderung mit einem Seeschiff oder Luftfahrzeug, das von einem Unternehmen mit tatsächlicher Geschäftsleitung in einem Vertragsstaat betrieben wird, es sei denn, das Seeschiff oder Luftfahrzeug wird ausschlie?lich zwischen Orten im anderen Vertragsstaat betrieben;

(j) bedeutet der Ausdruck “Staatsangehöriger”

(i) in Bezug auf die Bundesrepublik Deutschland –

alle Deutschen im Sinne des Grundgesetzes für die Bundesrepublik Deutschland sowie alle juristischen Personen, Personengesellschaften und anderen Personenvereinigungen, die nach dem in der Bundesrepublik Deutschland geltenden Recht errichtet worden sind;

(ii) in Bezug auf Mauritius –

alle natürlichen Personen, die die mauritische Staatsangehörigkeit besitzen, oder alle juristischen Personen, Personengesellschaften (société) oder anderen Personenvereinigungen, die nach dem in Mauritius geltenden Recht errichtet worden sind;

(k) bedeutet der Ausdruck “zuständige Behörde” –

(i) in Mauritius der Minister, dem die Verantwortung im Bereich Finanzen zugeordnet ist, oder seinen bevollmächtigten Vertreter;

(ii) in der Bundesrepublik Deutschland das Bundesministerium der Finanzen oder die Behörde, an die es seine Befugnisse delegiert hat;

(l) bedeutet der Ausdruck “Steuer” je nach dem Zusammenhang die mauritische oder die deutsche Steuer.

(2) Bei der Anwendung des Abkommens durch einen Vertragsstaat hat, wenn der Zusammenhang nichts anderes erfordert, jeder im Abkommen nicht definierte Ausdruck die Bedeutung, die ihm im Anwendungszeitraum nach dem Recht dieses Staates für die Steuern zukommt, für die das Abkommen gilt, wobei die Bedeutung nach dem in diesem Staat anzuwendenden Steuerrecht den Vorrang vor einer Bedeutung hat, die der Ausdruck nach anderem Recht dieses Staates hat.

ARTIKEL 4 – ANSÄSSIGE PERSON

(1) Im Sinne dieses Abkommens bedeutet der Ausdruck “eine in einem Vertragsstaat ansässige Person” –

(a) in Mauritius –

(i) eine natürliche Person mit Wohnsitz in Mauritius oder;

(ii) eine Gesellschaft mit Sitz und tatsächlicher Geschäftsleitung in Mauritius, sofern diese der allgemeinen mauritischen Steuer unterliegen.

(b) In der Bundesrepublik Deutschland bedeutet der Ausdruck “ansässige Person” eine Person, die nach dem Recht der Bundesrepublik Deutschlands dort aufgrund ihres Wohnsitzes, ihres ständigen Aufenthalts, des Ortes ihrer Geschäftsleitung oder eines anderen ähnlichen Merkmals steuerpflichtig ist, und umfasst die Bundesrepublik Deutschland, eines ihrer Länder und deren Gebietskörperschaften. Der Ausdruck umfasst jedoch nicht Personen, die in der Bundesrepublik Deutschland nur mit Einkünften aus deutschen Quellen steuerpflichtig sind.

(2) Ist nach Absatz 1 eine natürliche Person in beiden Vertragsstaaten ansässig, so gilt Folgendes –

(a) Die natürliche person gilt als nur in dem Staat ansässig, in dem sie über eine ständige Wohnstätte verfügt. Verfügt sie in beiden Staaten über eine ständige Wohnstätte, so gilt sie als nur in dem Staat ansässig, zu dem sie die engeren persönlichen und wirtschaftlichen Beziehungen hat (Mittelpunkt der Lebensinteressen);

(b) kann nicht bestimmt werden, in welchem Staat die Person den Mittelpunkt ihrer Lebensinteressen hat, oder verfügt sie in keinem der Staaten über eine ständige Wohnstätte, so gilt sie als nur in dem Staat ansässig, in dem sie ihren gewöhnlichen Aufenthalt hat;

(c) hat die Person ihren gewöhnlichen Aufenthalt in beiden Staaten oder in keinem der Staaten, so gilt sie als nur in dem Staat ansässig, dessen Staatsangehöriger sie ist;

(d) ist die Person Staatsangehöriger beider Staaten oder keines der Staaten, so regeln die zuständigen Behörden der Vertragsstaaten die Frage in gegenseitigem Einvernehmen.

(3) Ist nach Absatz 1 eine andere als eine natürliche Person in beiden Vertragsstaaten ansässig, so gilt sie als nur in dem Staat ansässig, in dem sich der Ort ihrer tatsächlichen Geschäftsleitung befindet.

ARTIKEL 5 – BETRIEBSTÄTTE

(1) Im Sinne dieses Abkommens bedeutet der Ausdruck “Betriebsstätte” eine feste Geschäftseinrichtung, durch die die Tätigkeit eines Unternehmens ganz oder teilweise ausgeübt wird.

(2) Der Ausdruck “Betriebsstätte” umfasst insbesondere –

(a) einen Ort der Leitung,

(b) eine Zweigniederlassung,

(c) eine Geschäftsstelle,

(d) eine Fabrikationsstätte,

(e) eine Werkstätte und

(f) ein Bergwerk, ein öl- oder Gasvorkommen, einen Steinbruch oder eine andere Stätte der Ausbeutung natürlicher Ressourcen.

(3) Der Ausdruck “Betriebsstätte” umfasst zudem –

(a) eine Bauausführung oder Montage oder eine damit verbundene Aufsichtstätigkeit, sofern ihre Dauer zwölf Monate überschreitet.

(b) eine Anlage oder ein Bauwerk zur Erforschung natürlicher Ressourcen, sofern die Nutzung zwölf Monate überschreitet.

(4) Ungeachtet der vorstehenden Bestimmungen dieses Artikels gelten nicht als Betriebstätten –

(a) Einrichtungen, die ausschlie?lich zur Lagerung, Ausstellung oder Auslieferung von Gütern oder Waren des Unternehmens benutzt werden;

(b) Bestände von Gütern oder Waren des Unternehmens, die ausschlie?lich zur Lagerung, Ausstellung oder Auslieferung unterhalten werden;

(c) Bestände von Gütern oder Waren des Unternehmens, die ausschlie?lich zu dem Zweck unterhalten werden, durch ein anderes Unternehmen bearbeitet oder verarbeitet zu werden;

(d) eine feste Geschäftseinrichtung, die ausschlie?lich zu dem Zweck, für das Unternehmen Güter oder Waren einzukaufen, oder zur Beschaffung von Informationen für das Unternehmen unterhalten wird;

(e) eine feste Geschäftseinrichtung, die ausschlie?lich zu dem Zweck unterhalten wird, für das Unternehmen andere Tätigkeiten auszuüben, die vorbereitender Art sind oder eine Hilfstätigkeit darstellen;

(f) eine feste Geschäftseinrichtung, die ausschlie?lich zu dem Zweck unterhalten wird, mehrere der unter den Buchstaben a bis e genannten Tätigkeiten auszuüben, vorausgesetzt, dass die sich daraus ergebende Gesamttätigkeit der festen Geschäftseinrichtung vorbereitender Art ist oder eine Hilfstätigkeit darstellt.

(5) Ist eine Person - mit Ausnahme eines unabhängigen Vertreters im Sinne des Absatzes 6 - für ein Unternehmen tätig und besitzt sie in einem Vertragsstaat die Vollmacht, im Namen des Unternehmens Verträge abzuschlieben, und übt sie die Vollmacht dort gewöhnlich aus, so wird das Unternehmen ungeachtet der Absätze 1 und 2 so behandelt, als habe es in diesem Staat für alle von der Person für das Unternehmen ausgeübten Tätigkeiten eine Betriebsstätte, es sei denn, diese Tätigkeiten beschränken sich auf die im Absatz 4 genannten Tätigkeiten, die, würden sie durch eine feste Geschäftseinrichtung ausgeübt, diese Einrichtung nach dem genannten Absatz nicht zu einer Betriebsstätte machten.

(6) Ein Unternehmen wird nicht schon deshalb so behandelt, als habe es eine Betriebs-stätte in einem Vertragsstaat, weil es dort seine Tätigkeit durch einen Makler, Kommissionär oder einen anderen unabhängigen Vertreter ausübt, sofern diese Personen im Rahmen ihrer ordentlichen Geschäftstätigkeit handeln.

(7) Allein dadurch, dass eine in einem Vertragsstaat ansässige Gesellschaft eine Gesellschaft beherrscht oder von einer Gesellschaft beherrscht wird, die im anderen Vertragsstaat ansässig ist oder dort (entweder durch eine Betriebstätte oder auf andere Weise) ihre Geschäftstätigkeit ausübt, wird keine der beiden Gesellschaften zur Betriebstätte der anderen.

ARTIKEL 6 – EINKÜNFTE AUS UNBEWEGLICHEM VERMÖGEN

(1) Einkünfte, die eine in einem Vertragsstaat ansässige Person aus unbeweglichem Vermögen (einschlie?lich der Einkünfte aus land- und forstwirtschaftlichen Betrieben) bezieht, das im anderen Vertragsstaat liegt, können im anderen Staat besteuert werden.

(2) Der Ausdruck “unbewegliches Vermögen” hat die Bedeutung, die ihm nach dem Recht des Vertragsstaats zukommt, in dem das Vermögen liegt. Der Ausdruck umfasst in jedem Fall das Zubehör zum unbeweglichen Vermögen, das lebende und tote Inventar land-und forstwirtschaftlicher Betriebe, die Rechte, für die die Vorschriften

des Privatrechts über Grundstücke gelten, Nutzungsrechte an unbeweglichem Vermögen sowie Rechte auf veränderliche oder feste Vergütungen für die Ausbeutung oder das Recht auf Ausbeutung von Mineralvorkommen, Quellen und anderen natürlichen Ressourcen. Schiffe und Luftfahrzeuge gelten nicht als unbewegliches Vermögen.

(3) Absatz 1 gilt für Einkünfte aus der unmittelbaren Nutzung, der Vermietung oder Verpachtung sowie jeder anderen Art der Nutzung unbeweglichen Vermögens.

(4) Die Absätze 1 und 3 gelten auch für die Einkünfte aus unbeweglichem Vermögen eines Unternehmens.

ARTIKEL 7 – UNTERNEHMENSGEWINNE

(1) Gewinne eines Unternehmens eines Vertragsstaats können nur in diesem Staat besteuert werden, es sei denn, das Unternehmen übt seine Geschäftstätigkeit im anderen Vertragsstaat durch eine dort gelegene Betriebstätte aus. übt das Unternehmen seine Tätigkeit auf diese Weise aus, so können die Gewinne des Unternehmens im anderen Staat besteuert werden, jedoch nur insoweit, als sie dieser Betriebsstätte zugerechnet werden können –

(2) übt ein Unternehmen eines Vertragsstaates seine Geschäftstätigkeit im anderen Vertragsstaat durch eine dort gelegene Betriebsstätte aus, so werden vorbehaltlich des Absatzes 3 in jedem Vertragsstaat dieser Betriebsstätte die Gewinne zugerechnet, die sie hätte erzielen können, wenn sie eine gleiche oder ähnliche Geschäftstätigkeit unter gleichen oder ähnlichen Bedingungen als selbständiges Unternehmen ausgeübt hätte und im Verkehr mit dem Unternehmen, dessen Betriebsstätte sie ist, völlig unabhängig gewesen wäre.

(3) Bei der Ermittlung der Gewinne einer Betriebsstätte werden die für diese Betriebsstätte entstandenen Aufwendungen, einschlie?lich der Geschäftsführungs- und allgemeinen Verwaltungskosten, zum Abzug zugelassen, gleichgültig, ob sie in dem Staat, in dem die Betriebsstätte liegt, oder anderswo entstanden sind.

(4) Soweit es in einem Vertragsstaat üblich ist, die einer Betriebstätte zuzurechnenden Gewinne durch Aufteilung der Gesamtgewinne des Unternehmens auf seine einzelnen Teile zu ermitteln, schliebt Absatz 2 nicht aus, dass dieser Vertragsstaat die zu besteuernden Gewinne nach der üblichen Aufteilung ermittelt. Die gewählte Gewinnaufteilung muss jedoch derart sein, dass das Ergebnis mit den Grundsätzen dieses Artikels übereinstimmt.

(5) Auf Grund des blo?en Einkaufs von Gütern oder Waren für das Unternehmen wird einer Betriebstätte kein Gewinn zugerechnet.

(6) Bei der Anwendung der vorstehenden Absätze sind die der Betriebsstätte zuzurechnenden Gewinne jedes Jahr auf dieselbe Art zu ermitteln, es sei denn, dass ausreichende Gründe dafür bestehen, anders zu verfahren.

(7) Dieser Artikel gilt auch für die Einkünfte aus der Beteiligung an einer Personengesellschaft. Er erstreckt sich auch auf Vergütungen, die ein Gesellschafter einer Personengesellschaft von der Gesellschaft für seine Tätigkeit im Dienst der Gesellschaft, für die Gewährung von Darlehen oder für die überlassung von Wirtschaftsgütern bezieht, wenn diese Vergütungen nach dem Steuerrecht des Vertragsstaats, in dem die Betriebsstätte gelegen ist, den Einkünften des Gesellschafters aus dieser Betriebsstätte zugerechnet werden.

(8) Gehören zu den Gewinnen Einkünfte, die in anderen Artikeln dieses Abkommens behandelt werden, so werden die Bestimmungen jener Artikel durch die Bestimmungen dieses Artikels nicht berührt.

ARTIKEL 8 – SEESCHIFFFAHRT UND LUFTFAHRT

(1) Gewinne aus dem Betrieb von Seeschiffen oder Luftfahrzeugen im internationalen Verkehr können nur in dem Vertragsstaat besteuert werden, in dem sich der Ort der tatsächlichen Geschäftsleitung des Unternehmens befindet.

(2) Für Zwecke dieses Artikels beinhalten die Begriffe “Gewinne aus dem Betrieb von Seeschiffen oder Luftfahrzeugen im internationalen Verkehr” die Gewinne aus der

(a) gelegentlichen Vermietung von leeren Seeschiffen oder Luftfahrzeugen und

(b) Nutzung oder Vermietung von Containern (einschlie?lich Trailern und zugehöriger Ausstattung, die dem Transport der Container dienen), wenn diese Tätigkeiten zum Betrieb von Seeschiffen oder Luftfahrzeugen im internationalen Verkehr gehören.

(3) Befindet sich der Ort der tatsächlichen Geschäftsleitung eines Unternehmens der Seeschifffahrt an Bord eines Schiffes, so gilt er als in dem Vertragsstaat gelegen, in dem der Heimathafen des Schiffes liegt, oder, wenn kein Heimathafen vorhanden ist, in dem Vertragsstaat, in dem die Person ansässig ist, die das Schiff betreibt.

(4) Absatz 1 gilt auch für Gewinne aus der Beteiligung an einem Pool, einer Betriebsgemeinschaft oder einer internationalen Betriebsstelle.

ARTIKEL 9 – VERBUNDENE UNTERNEHMEN

(1) Wenn –

(a) ein Unternehmen eines Vertragsstaats unmittelbar oder mittelbar an der Geschäftsleitung, der Kontrolle oder dem Kapital eines Unternehmens des anderen Vertragsstaats beteiligt ist oder

(b) dieselben Personen unmittelbar oder mittelbar an der Geschäftsleitung, der Kontrolle oder dem Kapital eines Unternehmens eines Vertragsstaats und eines Unternehmens des anderen Vertragsstaats beteiligt sind und in diesen Fällen die beiden Unternehmen in ihren kaufmännischen oder finanziellen Beziehungen an vereinbarte oder auferlegte Bedingungen gebunden sind, die von denen abweichen, die unabhängige Unternehmen miteinander vereinbaren würden, dürfen die Gewinne, die eines der Unternehmen ohne diese Bedingungen erzielt hätte, wegen dieser Bedingungen aber nicht erzielt hat, den Gewinnen dieses Unternehmens zugerechnet und entsprechend besteuert werden.

(2) Werden in einem Vertragsstaat den Gewinnen eines Unternehmens dieses Staates Gewinne zugerechnet–und entsprechend besteuert–, mit denen ein Unternehmen des anderen Vertragsstaats in diesem Staat besteuert worden ist, und handelt es sich bei den zugerechneten Gewinnen um solche, die das Unternehmen des erstgenannten Staates erzielt hätte, wenn die zwischen den beiden Unternehmen vereinbarten Bedingungen die gleichen gewesen wären, die unabhängige Unternehmen miteinander vereinbaren würden, so nimmt der andere Staat eine entsprechende änderung der dort von diesen Gewinnen erhobenen Steuer vor. Bei dieser änderung sind die übrigen Bestimmungen dieses Abkommens zu berücksichtigen; erforderlichenfalls werden die zuständigen Behörden der Vertragsstaaten einander konsultieren.

ARTIKEL 10 – DIVIDENDEN

(1) Dividenden, die eine in einem Vertragsstaat ansässige Gesellschaft an eine im anderen Vertragsstaat ansässige Person zahlt, können im anderen Staat besteuert werden.

(2) Diese Dividenden können jedoch auch in dem Vertragsstaat, in dem die die Dividenden zahlende Gesellschaft ansässig ist, nach dem Recht dieses Staates besteuert werden; die Steuer darf aber, wenn der Nutzungsberechtigte der Dividenden eine in dem anderen Vertragsstaat ansässige Person ist, nicht übersteigen –

(a) 5 vom Hundert des Bruttobetrags der Dividenden, wenn der Nutzungsberechtigte eine Gesellschaft (jedoch keine Personengesellschaft) ist, die unmittelbar über mindestens 10 vom Hundert des Kapitals der die Dividenden zahlenden Gesellschaft verfügt;

(b) 15 vom Hundert des Bruttobetrags der Dividenden in allen anderen Fällen.

Dieser Absatz berührt nicht die Besteuerung der Gesellschaft in Bezug auf die Gewinne, aus denen die Dividenden gezahlt werden.

(3) Der in diesem Artikel verwendete Ausdruck “Dividenden” bedeutet Einkünfte aus Aktien oder anderen Rechten–ausgenommen Forderungen–mit Gewinnbeteiligung und sonstige Einkünfte, die nach dem Recht des Vertragsstaats, in dem die ausschüttende Gesellschaft ansässig ist, den Einkünften aus Aktien steuerlich gleichgestellt sind, sowie Ausschüttungen auf Anteilscheine an einem Investmentvermögen.

(4) Die Absätze 1 und 2 sind nicht anzuwenden, wenn der in einem Vertragsstaat ansässige Nutzungsberechtigte im anderen Vertragsstaat, in dem die die Dividenden zahlende Gesellschaft ansässig ist, eine gewerbliche Tätigkeit durch eine dort gelegene Betriebstätte ausübt und die Beteiligung, für die die Dividenden gezahlt werden, tatsächlich zu dieser Betriebstätte gehört. In diesem Fall ist Artikel 7 anzuwenden.

(5) Erzielt eine in einem Vertragsstaat ansässige Gesellschaft Gewinne oder Einkünfte aus dem anderen Vertragsstaat, so darf dieser andere Staat weder die von der Gesellschaft gezahlten Dividenden besteuern, es sei denn, dass diese Dividenden an eine im anderen Staat ansässige Person gezahlt werden oder dass die Beteiligung, für die die Dividenden gezahlt werden, tatsächlich zu einer im anderen Staat gelegenen Betriebsstätte gehört, noch Gewinne der Gesellschaft einer Steuer für nicht ausgeschüttete Gewinne unterwerfen, selbst wenn die gezahlten Dividenden oder die nicht ausgeschütteten Gewinne ganz oder teilweise aus im anderen Staat erzielten Gewinnen oder Einkünften bestehen.

ARTIKEL 11 – ZINSEN

(1) Zinsen, die aus einem Vertragsstaat stammen und an eine im anderen Vertragsstaat ansässige Person gezahlt werden, können, wenn der Empfänger der Nutzungsberechtigte der Zinsen ist, nur im anderen Staat besteuert werden.

(2) Der in diesem Artikel verwendete Ausdruck “Zinsen” bedeutet Einkünfte aus Forderungen jeder Art, auch wenn die Forderungen durch Pfandrechte an Grandstücken gesichert sind, und insbesondere Einkünfte aus öffentlichen Anleihen und aus Obligationen einschlie?lich der damit verbundenen Aufgelder und der Gewinne aus Losanleihen. Zuschläge für verspätete Zahlung gelten nicht als Zinsen im Sinne dieses Artikels. Der Ausdruck “Zinsen” beinhaltet keine Einkünfte, die nach Artikel 10 als Dividende behandelt werden.

(3) Absatz 1 ist nicht anzuwenden, wenn der in einem Vertragsstaat ansässige Nutzungsberechtigte im anderen Vertragsstaat, aus dem die Zinsen stammen, eine gewerbliche Tätigkeit durch eine dort gelegene Betriebsstätte ausübt und die Forderung, für die die Zinsen gezahlt werden, tatsächlich zu dieser Betriebsstätte gehört. In diesem Fall ist Artikel 7 anzuwenden.

(4) Bestehen zwischen dem Schuldner und dem Nutzungsberechtigten oder zwischen jedem von ihnen und einem Dritten besondere Beziehungen und übersteigen deshalb die Zinsen, gemessen an der zugrunde liegenden Forderung, den Betrag, den Schuldner und Nutzungsberechtigter ohne diese Beziehungen vereinbart hätten, so wird dieser Artikel nur auf den letzteren Betrag angewendet. In diesem Fall kann der übersteigende Betrag nach dem Recht eines jeden Vertragsstaates und unter Berücksichtigung der anderen Bestimmungen dieses Abkommens besteuert werden.

ARTIKEL 12 – LIZENZGEBÜHREN

(1) Lizenzgebühren, die aus einem Vertragsstaat stammen und an eine im anderen Vertragsstaat ansässige Person gezahlt werden, können im anderen Staat besteuert werden.

(2) Diese Lizenzgebühren können jedoch auch in dem Vertragsstaat, aus dem sie stammen, nach dem Recht dieses Staates besteuert werden; die Steuer darf aber, wenn der Nutzungsberechtigte der Lizenzgebühren im anderen Vertragsstaat ansässig ist, 10 vom Hundert des Bruttobetrags der Lizenzgebühren nicht übersteigen.

(3) Der in diesem Artikel verwendete Ausdruck “Lizenzgebühren” bedeutet Vergütungen jeder Art, die für die Benutzung oder für das Recht auf Benutzung von Urheberrechten an literarischen, künstlerischen oder wissenschaftlichen Werken (einschlie?lich kinematografischer Filme sowie Filmen, Bändern oder Datenträgern für Hörfunk- oder Fernsehübertragungen), von Patenten, Warenzeichen, Mustern oder Modellen, Plänen, geheimen Formeln oder Verfahren oder für Informationen über gewerbliche, kaufmännische oder wissenschaftliche Erfahrungen gezahlt werden.

(4) Die Absätze 1 und 2 sind nicht anzuwenden, wenn der in einem Vertragsstaat ansässige Nutzungsberechtigte im anderen Vertragsstaat, aus dem die Lizenzgebühren stammen, eine Geschäftstätigkeit durch eine dort gelegene Betriebsstätte ausübt und die Rechte oder Vermögenswerte, für die die Lizenzgebühren gezahlt werden, tatsächlich zu dieser Betriebsstätte gehören. In diesem Fall ist Artikel 7 anzuwenden.

(5) Lizenzgebühren gelten dann als aus einem Vertragsstaat stammend, wenn der Schuldner eine in diesem Staat ansässige Person ist. Hat aber der Schuldner der Lizenzgebühren, ohne Rücksicht darauf, ob er in einem Vertragsstaat ansässig ist oder nicht, in einem Vertragsstaat eine Betriebstätte, über die die Verpflichtung zur Zahlung der Lizenzgebühren eingegangen wurde, und trägt die Betriebstätte die Lizenzgebühren, so gelten die Lizenzgebühren als aus dem Vertragsstaat stammend, in dem die Betriebstätte liegt.

(6) BestehenzwischendemSchuldnerunddemNutzungsberechtigten oder zwischen jedem von ihnen und einem Dritten besondere Beziehungen und übersteigen deshalb die Lizenzgebühren, gemessen an der zugrunde liegenden Leistung, den Betrag, den Schuldner und Nutzungsberechtigter ohne diese Beziehungen vereinbart hätten, so wird dieser Artikel nur auf den letzteren Betrag angewendet. In diesem Fall kann der übersteigende Betrag nach dem Recht eines jeden Vertragsstaats und unter Berücksichtigung der anderen Bestimmungen dieses Abkommens besteuert werden.

ARTIKEL 13 – GEWINNE AUS DER VERÄUBERUNG VON VERMÖGEN

(1) Gewinne, die eine in einem Vertragsstaat ansässige Person aus der Veräu?erung unbeweglichen Vermögens im Sinne des Artikels 6 bezieht, das im anderen Vertragsstaat liegt, können im anderen Staat besteuert werden.

(2) Gewinne aus der Veräu?erung beweglichen Vermögens, das Betriebsvermögen einer Betriebstätte ist, die ein Unternehmen eines Vertragsstaats im anderen Vertragsstaat hat, einschlie?lich derartiger Gewinne, die bei der Veräu?erung einer solchen Betriebstätte (allein oder mit dem übrigen Unternehmen) erzielt werden, können im anderen Staat besteuert werden.

(3) Gewinne aus der Veräu?erung von Seeschiffen oder Luftfahrzeugen, die im internationalen Verkehr betrieben werden, oder von beweglichem Vermögen, das dem Betrieb dieser Schiffe oder Luftfahrzeuge dient, können nur in dem Vertragsstaat besteuert werden, in dem sich der Ort der tatsächlichen Geschäftsleitung des Unternehmens befindet.

(4) Gewinne, die eine in einem Vertragsstaat ansässige Person aus der Veräu?erung von Aktien, Anteilen oder sonstigen Rechten am Kapital einer Gesellschaft oder einer Beteiligung an einer Personengesellschaft erzielt, die im anderen Vertragsstaat ansässig ist, können in diesem anderen Vertragsstaat besteuert werden.

(5) Gewinne aus der Veräu?erung von in den Absätzen 1 bis 4 nicht genanntem Vermögen können nur in dem Vertragsstaat besteuert werden, in dem der Veräu?erer ansässig ist.

(6) Bei einer natürlichen Person, die in einem Vertragsstaat während mindestens fünf Jahren ansässig war und die im anderen Vertragsstaat ansässig geworden ist, berührt Absatz 5 nicht das Recht des erstgenannten Staates, bei Anteilen an Gesellschaften, die im erstgenannten Vertragsstaat ansässig sind, nach seinen innerstaatlichen Rechtsvorschriften bei der Person einen Vermögenszuwachs bis zu ihrem Wohnsitzwechsel zu besteuern. In diesem Fall wird der im erstgenannten Staat besteuerte Vermögenszuwachs bei der Ermittlung des späteren Vermögenszuwachses durch den anderen Staat nicht eingeschlossen.

ARTIKEL 14 – EINKÜNFTE AUS UNSELBSTÄNDIGER ARBEIT

(1) Vorbehaltlich der Artikel 15, 17 und 18 können Gehälter, Löhne und ähnliche Vergütungen, die eine in einem Vertragsstaat ansässige Person aus unselbständiger Arbeit bezieht, nur in diesem Staat besteuert werden, es sei denn, die Arbeit wird im anderen Vertragsstaat ausgeübt. Wird die Arbeit dort ausgeübt, so können die dafür bezogenen Vergütungen im anderen Staat besteuert werden.

(2) Ungeachtet des Absatzes 1 können Vergütungen, die eine in einem Vertragsstaat ansässige Person für eine im anderen Vertragsstaat ausgeübte unselbständige Arbeit bezieht, nur im erstgenannten Staat besteuert werden, wenn

(a) der Empfänger sich im anderen Staat insgesamt nicht länger als 183 Tage innerhalb eines Zeitraums von 12 Monaten, der während des betreffenden Steuerjahres beginnt oder endet, aufhält und

(b) die Vergütungen von einem Arbeitgeber oder für einen Arbeitgeber gezahlt werden, der nicht im anderen Staat ansässig ist, und

(c) die Vergütungen nicht von einer Betriebstätte getragen werden, die der Arbeitgeber im anderen Staat hat.

(3) Ungeachtet der vorstehenden Bestimmungen dieses Artikels können Vergütungen für eine an Bord eines Seeschiffs oder Luftfahrzeugs im internationalen Verkehr ausgeübte unselbständige Arbeit in dem Vertragsstaat besteuert werden, in dem sich der Ort der tatsächlichen Geschäftsleitung des Unternehmens befindet, das das Seeschiff oder Luftfahrzeug betreibt.

ARTIKEL 15 – AUFSICHTSRATS-UND VERWALTUNGSRATSVERGÜTUNGEN

Aufsichtsrats- oder Verwaltungsratsvergütungen und ähnliche Zahlungen, die eine in einem Vertragsstaat ansässige Person in ihrer Eigenschaft als Mitglied des Aufsichts- oder Verwaltungsrats einer Gesellschaft bezieht, die im anderen Vertragsstaat ansässig ist, können im anderen Staat besteuert werden.

ARTIKEL 16 – KÜNSTLER UND SPORTLER

(1) Ungeachtet der Artikel 7 und 14 können Einkünfte, die eine in einem Vertragsstaat ansässige Person als Künstler, wie Bühnen-, Film-, Rundfunk- und Fernsehkünstler sowie Musiker, oder als Sportler aus ihrer im anderen Vertragsstaat persönlich ausgeübten Tätigkeit bezieht, im anderen Staat besteuert werden.

(2) Flie?en Einkünfte aus einer von einem Künstler oder Sportler in dieser Eigenschaft persönlich ausgeübten Tätigkeit nicht dem Künstler oder Sportler selbst, sondern einer anderen Person zu, so können diese Einkünfte ungeachtet der Artikel 7 und 14 in dem Vertragsstaat besteuert werden, in dem der Künstler oder Sportler seine Tätigkeit ausübt.

(3) Die Absätze 1 und 2 gelten nicht für Einkünfte aus der von Künstlern oder Sportlern in einem Vertragsstaat ausgeübten Tätigkeit, wenn der Aufenthalt in diesem Staat ganz oder überwiegend aus öffentlichen Mitteln des anderen Staates oder einem seiner Länder oder einer ihrer Gebietskörperschaften oder von einer im anderen Staat als gemeinnützig anerkannten Einrichtung finanziert wird. In diesem Fall können die Einkünfte nur in dem Vertragsstaat besteuert werden, in dem der Künstler oder Sportler ansässig ist.

ARTIKEL 17 – RUHEGEHÄLTER, RENTEN UND ÄHNLICHE ZAHLUNGEN

(1) Vorbehaltlich des Artikels 18 Absatz 2 können Ruhegehälter, Renten und ähnliche Zahlungen, die aus einem Vertragsstaat stammen und die eine im anderen Vertragsstaat ansässige Person erhält, nur in diesem anderen Staat besteuert werden.

(2) Ungeachtet des Absatzes 1 können Ruhegehälter und andere Zahlungen, die im Rahmen eines zum Sozialversicherungssystem eines Vertragsstaats, eines seiner Länder oder einer ihrer Gebietskörperschaften gehörenden öffentlichen Systems gezahlt oder geleistet werden, nur in diesem Staat besteuert werden.

(3) Der Begriff “Rente” bedeutet einen bestimmten Betrag, der regelmäbig zu festgesetzten Zeitpunkten lebenslang oder während eines bestimmten oder bestimmbaren Zeitabschnitts aufgrund einer Verpflichtung zahlbar ist, die diese Zahlungen als Gegenleistung für eine in Geld oder Geldeswert bewirkte angemessene Leistung vorsieht.

ARTIKEL 18 – ÖFFENTLICHER DIENST

(1) (a) Gehälter, Löhne und ähnliche Vergütungen, ausgenommen Ruhegehälter, die von einem Vertragsstaat, einem seiner Länder oder einer ihrer Gebietskörperschaften oder einer Körperschaft des öffentlichen Rechts an eine natürliche Person für die diesem Staat, Land, dieser Gebietskörperschaft oder dieser Körperschaft des öffentlichen Rechts geleisteten Dienste gezahlt werden, können nur in diesem Staat besteuert werden.

(b) Diese Gehälter, Löhne und ähnlichen Vergütungen können jedoch nur im anderen Vertragsstaat besteuert werden, wenn die Dienste in diesem Staat geleistet werden und die natürliche Person in diesem Staat ansässig ist und –

(i) ein Staatsangehöriger dieses Staates ist, oder,

(ii) nicht ausschlie?lich deshalb in diesem Staat ansässig geworden ist, um die Dienste zu leisten.

(2) (a) Ruhegehälter, die von einem Vertragsstaat, einem seiner Länder, einer ihrer Gebietskörperschaften oder einer Körperschaft des öffentlichen Rechts oder aus einem von diesem Staat, diesem Land, dieser Gebietskörperschaft oder dieser Körperschaft des öffentlichen Rechts errichteten Sondervermögen an eine natürliche Person für die diesem Staat, Land, dieser Gebietskörperschaft oder dieser Körperschaft des öffentlichen Rechts geleisteten Dienste gezahlt werden, können nur in diesem Staat besteuert werden.

(b) Diese Ruhegehälter können jedoch nur im anderen Vertragsstaat besteuert werden, wenn die natürliche Person in diesem Staat ansässig und ein Staatsangehöriger dieses Staates ist.

(3) Auf Gehälter, Löhne und ähnliche Vergütungen und Ruhegehälter für Dienstleistungen, die im Zusammenhang mit einer gewerblichen Tätigkeit eines Vertragsstaats, eines seiner Länder, einer ihrer Gebietskörperschaften oder einer Körperschaft des öffentlichen Rechts erbracht werden, sind die Artikel 14, 15, 16 und  7 anzuwenden.

ARTIKEL 19 – PROFESSOREN UND LEHRER

(1) Eine natürliche Person, die sich auf Einladung eines Vertragsstaats oder einer Universität, Hochschule, Schule, eines Museums oder einer anderen kulturellen Einrichtung dieses Staates oder im Rahmen eines amtlichen Kulturaustauschs in diesem Vertragsstaat höchstens zwei Jahre lang lediglich zur Ausübung einer Lehrtätigkeit, zum Halten von Vorlesungen oder zur Ausübung einer Forschungstätigkeit bei dieser Einrichtung aufhält und die im anderen Vertragsstaat ansässig ist oder dort unmittelbar vor der Einreise in den erstgenannten Staat ansässig war, ist in dem erstgenannten Staat mit ihren für diese Tätigkeit bezogenen Vergütungen von der Steuer befreit, vorausgesetzt, dass diese Vergütungen von au?erhalb dieses Staates bezogen werden.

(2) Dieser Artikel gilt nicht für Einkünfte aus Forschungstätigkeit, wenn die Forschungstätigkeit nicht im öffentlichen Interesse, sondern gänzlich oder hauptsächlich zum privaten Nutzen einer bestimmten Person oder bestimmter Personen ausgeübt wird.

ARTIKEL 20 – STUDENTEN, PRAKTIKANTEN UND LEHRLINGE

Ein Student, Praktikant oder Lehrling, der sich in einem Vertragsstaat lediglich zum Studium oder zur Ausbildung aufhält und der im anderen Vertragsstaat ansässig ist oder dort unmittelbar vor der Einreise ansässig war, ist mit den Zahlungen, die er für seinen Unterhalt, sein Studium oder seine Ausbildung von au?erhalb des erstgenannten Staates erhält, in dem erstgenannten Staat von der Steuer befreit.

ARTIKEL 21 – ANDERE ANDERE EINKÜNFTE

(1) Einkünfte einer in einem Vertragsstaat ansässigen Person, die in den vorstehenden Artikeln nicht behandelt wurden, können ohne Rücksicht auf ihre Herkunft nur in diesem Staat besteuert werden.

(2) Absatz 1 ist auf andere Einkünfte als solche aus unbeweglichem Vermögen im Sinne des Artikels 6 Absatz 2 nicht anzuwenden, wenn der in einem Vertragsstaat ansässige Empfänger im anderen Vertragsstaat eine Geschäftstätigkeit durch eine dort gelegene Betriebsstätte ausübt und die Rechte oder Vermögenswerte, für die die Einkünfte gezahlt werden, tatsächlich zu dieser Betriebsstätte gehören. In diesem Fall ist Artikel 7 anzuwenden.

ARTIKEL 22 – BESONDERE BESTIMMUNGEN

(1) Eine Voraussetzung für die Befreiung von der deutschen Steuer ist der Nachweis durch eine in Mauritius ansässige Person, dass der Hauptzweck oder einer der Hauptzwecke ihrer Geschäftstätigkeit oder der Ausübung ihrer Geschäftstätigkeit oder ihres Erwerbs oder Besitzes der Beteiligung oder sonstigen Vermögens, aus denen die betreffenden Einkünfte bezogen werden, nicht darin bestand, diese Vergünstigungen zu erlangen.

(2) Eine in Mauritius ansässige Gesellschaft hat Anspruch auf die Abkommensvergünstigungen, wenn es sich um eine “berechtigte Gesellschaft” handelt. Die Gesellschaft gilt als “berechtigte Gesellschaft”, wenn sie nachweisen kann, dass –

(a) die unmittelbar und ausschlie?lich Nutzungsberechtigten ihres Kapitals Mauritius oder eine seiner Gebietskörperschaften, in Mauritius ansässige natürliche Personen oder natürliche Personen mit Ansässigkeit in Staaten oder Hoheitsbereichen sind, in denen ein Abkommen zur Vermeidung der Doppelbesteuerung auf dem Gebiet der Steuern vom Einkommen mit der Bundesrepublik Deutschland anwendbar ist, und die Gesellschaft von den vorgenannten ansässigen Personen beherrscht wird sowie;

(b) mehr als 50 vom Hundert ihrer Bruttoeinkünfte weder unmittelbar noch mittelbar zur Erfüllung von Verbindlichkeiten (einschlie?lich für Zinsen oder Lizenzgebühren) gegenüber Personen verwendet werden, die in einem Staat oder Hoheitsbereich ansässig sind, in dem kein Abkommen zur Vermeidung der Doppelbesteuerung auf dem Gebiet der Steuern vom Einkommen mit der Bundesrepublik Deutschland anwendbar ist.

ARTIKEL 23 – VERMEIDUNG DER DOPPELBESTEUERUNG

Die Doppelbesteuerung wird wie folgt vermieden –

(1) In Mauritius –

(a) Bezieht eine in Mauritius ansässige Person Einkünfte aus der Bundesrepublik Deutschland, kann die nach diesem Abkommen in der Bundesrepublik Deutschland zu entrichtende Steuer auf diese Einkünfte auf die bei dieser ansässigen Person erhobene mauritische Steuer angerechnet werden,

(b) Zahlt eine in der Bundesrepublik Deutschland ansässige Gesellschaft eine Dividende an eine in Mauritius ansässige Person, die unmittelbar oder mittelbar mindestens 5 vom Hundert des Kapitals der die Dividende zahlenden Gesellschaft beherrscht, wird bei der Anrechnung (zusätzlich zu der nach Buchstabe a gegebenenfalls anrechnungsfähigen deutschen Steuer) die von der erstgenannten Gesellschaft zu entrichtende deutsche Steuer auf die Gewinne, aus denen diese Dividende gezahlt wird, berücksichtigt, sofern ein nach Buchstabe a oder b zulässiger Anrechnungsbetrag die für die Gewinne oder Einkünfte aus deutschen Quellen zutreffende (vor der Anrechnung ermittelte) mauritische Steuer nicht übersteigt.

(2) In der Bundesrepublik Deutschland –

(a) Auf die deutsche Steuer auf Einkünfte, die nach diesem Abkommen in Mauritius besteuert werden können, wird unter Beachtung der Vorschriften des deutschen Steuerrechts über die Anrechnung ausländischer Steuern die mauritische Steuer angerechnet, die nach mauritischem Recht und in übereinstimmung mit diesem Abkommen gezahlt worden ist;

(b) Sind Einkünfte einer in der Bundesrepublik Deutschland ansässigen Person nach diesem Abkommen in der Bundesrepublik Deutschland von der Steuer befreit, kann die Bundesrepublik Deutschland bei der Berechnung der Steuer auf das übrige Einkommen dieser ansässigen Person die von der Steuer befreiten Einkünfte berücksichtigen.

ARTIKEL 24 – GLEICHBEHANDLUNG

(1) Staatsangehörige eines Vertragsstaats dürfen im anderen Vertragsstaat keiner Besteuerung oder damit zusammenhängenden Verpflichtung unterworfen werden, die anders oder belastender ist als die Besteuerung und die damit zusammenhängenden Veipflichtungen, denen Staatsangehörige des anderen Staates unter gleichen Verhältnissen insbesondere hinsichtlich der Ansässigkeit unterworfen sind oder unterworfen werden können. Diese Bestimmung gilt ungeachtet des Artikels 1 auch für Personen, die in keinem Vertragsstaat ansässig sind.

(2) Staatenlose, die in einem Vertragsstaat ansässig sind, dürfen in keinem Vertragsstaat einer Besteuerung oder damit zusammenhängenden Verpflichtung unterworfen werden, die anders oder belastender ist als die Besteuerung und die damit zusammenhängenden Verpflichtungen, denen Staatsangehörige des betreffenden Staates unter gleichen Verhältnissen unterworfen sind oder unterworfen werden können.

(3) Die Besteuerung einer Betriebstätte, die ein Unternehmen eines Vertragsstaats im anderen Vertragsstaat hat, darf in dem anderen Staat nicht ungünstiger sein als die Besteuerung von Unternehmen des anderen Staates, die die gleiche Tätigkeit ausüben. Diese Bestimmung ist nicht so auszulegen, als verpflichte sie einen Vertragsstaat, den im anderen Vertragsstaat ansässigen Personen Steuerfreibeträge, -Vergünstigungen und ermä?igungen aufgrund des Personenstands oder der Familienlasten zu gewähren, die er nur seinen ansässigen Personen gewährt.

(4) Sofern nicht Artikel 9 Absatz 1, Artikel 11 Absatz 4 oder Artikel 12 Absatz 6 anzuwenden ist, sind Zinsen, Lizenzgebühren und andere Entgelte, die ein Unternehmen eines Vertragsstaates an eine im anderen Vertragsstaat ansässige Person zahlt, bei der Ermittlung der steuerpflichtigen Gewinne dieses Unternehmens unter den gleichen Bedingungen wie Zahlungen an eine im erstgenannten Staat ansässige Person zum Abzug zuzulassen.

(5) Unternehmen eines Vertragsstaates, deren Kapital ganz oder teilweise unmittelbar oder mittelbar einer im anderen Vertragsstaat ansässigen Person oder mehreren solchen Personen gehört oder ihrer Kontrolle unterliegt, dürfen im erstgenannten Staat keiner Besteuerung oder damit zusammenhängenden Verpflichtung unterworfen werden, die anders oder belastender ist als die Besteuerung und die damit zusammenhängenden Verpflichtungen, denen andere ähnliche Unternehmen des erstgenannten Staates unterworfen sind oder unterworfen werden können.

(6) Dieser Artikel gilt ungeachtet des Artikels 2 für Steuern jeder Art und Bezeichnung.

ARTIKEL 25 – VERSTÄNDIGUNGSVERFAHREN

(1) Ist eine Person der Auffassung, dass Ma?nahmen eines Vertragsstaats oder beider Vertragsstaaten für sie zu einer Besteuerung führen oder führen werden, die diesem Abkommen nicht entspricht, so kann sie unbeschadet der nach dem innerstaatlichen Recht dieser Staaten vorgesehenen Rechtsmittel ihren Fall der zuständigen Behörde des Vertragsstaats, in dem sie ansässig ist, oder, sofern ihr Fall von Artikel 24 Absatz 1 erfasst wird, der zuständigen Behörde des Vertragsstaats unterbreiten, dessen Staatsangehöriger sie ist. Der Fall muss innerhalb von drei Jahren nach der ersten Mitteilung der Ma?nahme unterbreitet werden, die zu einer dem Abkommen nicht entsprechenden Besteuerung führt.

(2) HältdiezuständigeBehördedieEinwendungfürbegründetundist sie selbst nicht in der Lage, eine befriedigende Lösung herbeizuführen, so wird sie sich bemühen, den Fall durch Verständigung mit der zuständigen Behörde des anderen Vertragsstaats so zu regeln, dass eine dem Abkommen nicht entsprechende Besteuerung vermieden wird. Die Verständigungsregelung ist ungeachtet der Fristen des innerstaatlichen Rechts der Vertragsstaaten durchzuführen.

(3) Die zuständigen Behörden der Vertragsstaaten werden sich bemühen, Schwierigkeiten oder Zweifel, die bei der Auslegung oder Anwendung des Abkommens entstehen, in gegenseitigem Einvernehmen zu beseitigen. Sie können auch gemeinsam darüber beraten, wie eine Doppelbesteuerung in Fällen vermieden werden kann, die im Abkommen nicht behandelt sind.

(4) Die zuständigen Behörden der Vertragsstaaten können zur Herbeiführung einer Einigung im Sinne der vorstehenden Absätze unmittelbar miteinander verkehren, gegebenenfalls durch eine aus ihnen oder ihren Vertretern bestehende gemeinsame Kommission.

ARTIKEL 26 – INFORMATIONSAUSTAUSCH

(1) Die zuständigen Behörden der Vertragsstaaten tauschen die Informationen aus, die zur Durchführung dieses Abkommens oder zur Verwaltung oder Vollstreckung des innerstaatlichen Rechts betreffend Steuern jeder Art und Bezeichnung, die für Rechnung eines Vertragsstaats, eines seiner Länder oder einer ihrer Gebietskörperschaften erhoben werden, voraussichtlich erheblich sind, soweit die diesem Recht entsprechende Besteuerung nicht dem Abkommen widerspricht. Der Informationsaustausch ist durch die Artikel 1 und 2 nicht eingeschränkt.

(2) Alle Informationen, die ein Vertragsstaat nach Absatz 1 erhalten hat, sind ebenso geheim zu halten wie die aufgrund des innerstaatlichen Rechts dieses Staates beschafften Informationen und dürfen nur den Personen oder Behörden (einschlie?lich der Gerichte und der Verwaltungsbehörden) zugänglich gemacht werden, die mit der Veranlagung oder Erhebung, der Vollstreckung oder Strafverfolgung, der Entscheidung über Rechtsmittel hinsichtlich der in Absatz 1 genannten Steuern oder mit der Aufsicht darüber befasst sind. Diese Personen oder Behörden dürfen die Informationen nur für diese Zwecke verwenden. Sie dürfen die Informationen in einem öffentlichen Gerichtsverfahren oder in einer Gerichtsentscheidung offenlegen.

(3) Absätze 1 und 2 sind nicht so auszulegen, als verpflichteten sie einen Vertragsstaat,

(a) für die Erteilung von Informationen Verwaltungsma?nahmen durchzuführen, die von den Gesetzen und der Verwaltungspraxis dieses oder des anderen Vertragsstaats abweichen;

(b) Informationen zu erteilen, die nach den Gesetzen oder im üblichen Verwaltungsverfahren dieses oder des anderen Vertragsstaates nicht beschafft werden können;

(c) Informationen zu erteilen, die ein Handels-, Industrie-, Gewerbe- oder Berufsgeheimnis oder ein Geschäftsverfahren preisgeben würden oder deren Erteilung der öffentlichen Ordnung widerspräche.

(4) Ersucht ein Vertragsstaat gemä? diesem Artikel um Informationen, so nutzt der andere Vertragsstaat die ihm zur Verfügung stehenden Möglichkeiten zur Beschaffung der erbetenen Informationen, selbst wenn dieser andere Staat diese Informationen für seine eigenen steuerlichen Zwecke nicht benötigt. Die im vorhergehenden Satz enthaltene Verpflichtung unterliegt den Beschränkungen gemä? Absatz 3, aber diese Beschränkungen sind in keinem Fall so auszulegen, als könne ein Vertragsstaat die Erteilung von Informationen nur deshalb ablehnen, weil er kein innerstaatliches Interesse an diesen Informationen hat.

(5) Absatz 3 ist in keinem Fall so auszulegen, als könne ein Vertragsstaat die Erteilung von Informationen nur deshalb ablehnen, weil sich die Informationen bei einer Bank, einem sonstigen Finanzinstitut, einem Bevollmächtigten, Vertreter oder Treuhänder befinden oder weil sie sich auf das Eigentum an einer Person beziehen.

ARTIKEL 27 – AMTSHILFE BEI DER ERHEBUNG VON STEUERN

(1) Die Vertragsstaaten leisten sich gegenseitige Amtshilfe bei der Erhebung von Steueransprüchen. Diese Amtshilfe ist durch Artikel 1 und 2 nicht eingeschränkt. Die zuständigen Behörden der Vertragsstaaten können in gegenseitigem Einvernehmen regeln, wie dieser Artikel durchzuführen ist.

(2) Der in diesem Artikel verwendete Ausdruck “Steueranspruch” bedeutet einen Betrag, der auf Grund von Steuern jeder Art und Bezeichnung, die für Rechnung eines Vertragsstaats, eines seiner Länder oder einer ihrer Gebietskörperschaften erhoben werden, geschuldet wird, soweit die Besteuerung diesem Abkommen oder anderen übereinkünften, denen die Vertragsstaaten als Vertragsparteien angehören, nicht widerspricht, sowie mit diesem Betrag zusammenhängende Zinsen, Geldbu?en und Kosten der Erhebung oder Sicherung.

(3) Ist der Steueranspruch eines Vertragsstaats nach dem Recht dieses Staates vollstreckbar und wird er von einer Person geschuldet, die zu diesem Zeitpunkt nach dem Recht dieses Staates die Erhebung nicht verhindern kann, wird dieser Steueranspruch auf Ersuchen der zuständigen Behörde dieses Staates für die Zwecke der Erhebung von der zuständigen Behörde des anderen Vertragsstaats anerkannt. Der Steueranspruch wird vom anderen Staat nach dessen Rechtsvorschriften über die Vollstreckung und Erhebung seiner eigenen Steuern erhoben, als handele es sich bei dem Steueranspruch um einen Steueranspruch des anderen Staates.

(4) Handelt es sich bei dem Steueranspruch eines Vertragsstaats um einen Anspruch, bei dem dieser Staat nach seinem Recht Ma?nahmen zur Sicherung der Erhebung einleiten kann, wird dieser Steueranspruch auf Ersuchen der zuständigen Behörde dieses

Staates zum Zwecke der Einleitung von Sicherungsma?nahmen von der zuständigen Behörde des anderen Vertragsstaats anerkannt. Der andere Staat leitet nach seinen Rechtsvorschriften Sicherungsma?nahmen in Bezug auf diesen Steueranspruch ein, als wäre der Steueranspruch ein Steueranspruch dieses anderen Staates, selbst wenn der Steueranspruch im Zeitpunkt der Einleitung dieser Ma?nahmen im erstgenannten Staat nicht vollstreckbar ist oder von einer Person geschuldet wird, die berechtigt ist, die Erhebung zu verhindern.

(5) Ungeachtet der Absätze 3 und 4 unterliegt ein von einem Vertragsstaat für Zwecke der Absätze 3 oder 4 anerkannter Steueranspruch als solcher in diesem Staat nicht den Verjährungsfristen oder den Vorschriften über die vorrangige Behandlung eines Steueranspruchs nach dem Recht dieses Staates. Ferner hat ein Steueranspruch, der von einem Vertragsstaat für Zwecke der Absätze 3 oder 4 anerkannt wurde, in diesem Staat nicht den Vorrang, den dieser Steueranspruch nach dem Recht des anderen Vertragsstaats hat.

(6) Verfahren im Zusammenhang mit dem Bestehen, der Gültigkeit oder der Höhe des Steueranspruchs eines Vertragsstaats können nicht bei den Gerichten oder Verwaltungsbehörden des anderen Vertragsstaats eingeleitet werden.

(7) Verliert der betreffende Steueranspruch, nachdem das Ersuchen eines Vertragsstaats nach den Absätzen 3 oder 4 gestellt wurde und bevor der andere Vertragsstaat den betreffenden Steueranspruch erhoben und an den erstgenannten Staat ausgezahlt hat –

(a) im Falle eines Ersuchens nach Absatz 3 seine Eigenschaft als Steueranspruch des erstgenannten Staates, der nach dem Recht dieses Staates vollstreckbar ist und von einer Person geschuldet wird, die zu diesem Zeitpunkt nach dem Recht dieses Staates die Erhebung nicht verhindern kann, oder;

(b) im Falle eines Ersuchens nach Absatz 4 seine Eigenschaft als Steueranspruch des erstgenannten Staates, für den dieser Staat nach seinem Recht Ma?nahmen zur Sicherung der Erhebung einleiten kann,

teilt die zuständige Behörde des erstgenannten Staates dies der zuständigen Behörde des anderen Staates unverzüglich mit und nach Wahl des anderen Staates setzt der erstgenannte Staat das Ersuchen entweder aus oder nimmt es zurück.

(8) Dieser Artikel ist nicht so auszulegen, als verpflichte er einen Vertragsstaat –

(a) Verwaltungsma?nahmen durchzuführen, die von den Gesetzen und der Verwaltungspraxis dieses oder des anderen Vertragsstaats abweichen;

(b) Ma?nahmen durchzuführen, die der öffentlichen Ordnung widersprächen;

(c) Amtshilfe zu leisten, wenn der andere Vertragsstaat nicht alle angemessenen Ma?nahmen zur Erhebung oder Sicherung, die nach seinen Gesetzen oder seiner Verwaltungspraxis möglich sind, ausgeschöpft hat;

(d) Amtshilfe in Fällen zu leisten, in denen der Verwaltungsaufwand für diesen Staat in einem eindeutigen Missverhältnis zu dem Nutzen steht, den der andere Vertragsstaat dadurch erlangt.

ARTIKEL 28 – VERFAHRENSREGELN FÜR DIE QUELLENBESTEUERUNG

(1) Werden in einem Vertragsstaat die Steuern von Dividenden, Zinsen, Lizenzgebühren oder sonstigen von einer im anderen Vertragsstaat ansässigen Person bezogenen Einkünfte im Abzugsweg (an der Quelle) erhoben, so wird das Recht des erstgenannten Staates zur Vornahme des Steuerabzugs zu dem nach seinem innerstaatlichen Recht vorgesehenen Satz durch dieses Abkommen nicht berührt. Die im Abzugsweg erhobene Steuer ist auf Antrag des Steuerpflichtigen zu erstatten, wenn und soweit sie durch das Abkommen ermä?igt wird oder entfällt.

(2) Die Anträge auf Erstattung müssen vor dem Ende des vierten auf das Kalenderjahr der Festsetzung der Abzugsteuer auf die Dividenden, Zinsen, Lizenzgebühren oder anderen Einkünfte folgenden Jahres eingereicht werden.

(3) Ungeachtet des Absatzes 1 wird jeder Vertragsstaat Verfahren dafür schaffen, dass Zahlungen von Einkünften, die nach diesem ***Abkommen-im Quellenstaat keiner oder nur einer ermä?igten Steuer unterliegen, ohne oder nur mit dem Steuerabzug erfolgen können, der im jeweiligen Artikel vorgesehen ist.

(4) Der Vertragsstaat, aus dem die Einkünfte stammen, kann von der zuständigen Behörde des anderen Vertragsstaats eine Bescheinigung über die Ansässigkeit des Antragstellers verlangen.

(5) Die zuständigen Behörden können in gegenseitigem Einvernehmen die Durchführung dieses Artikels regeln und gegebenenfalls andere Verfahren zur Durchführung der im Abkommen vorgesehenen Steuerermä?igungen oder-befreiungen festlegen.

ARTIKEL 29 – ANWENDUNG DES ABKOMMENS IN BESTIMMTEN FÄLLEN

Dieses Abkommen ist nicht so auszulegen, als hindere es einen Vertragsstaat, seine innerstaatlichen Rechtsvorschriften zur Verhinderung der Steuerumgehung oder Steuerhinterziehung anzuwenden. Führt die vorstehende Bestimmung zu einer Doppelbesteuerung, konsultieren die zuständigen Behörden einander nach Artikel 25 Absatz 3, wie die Doppelbesteuerung zu vermeiden ist.

ARTIKEL 30 – MITGLIEDER DIPLOMATISCHER MISSIONEN
UND KONSULARISCHER VERTRETUNGEN

Dieses Abkommen berührt nicht die steuerlichen Vorrechte, die den Mitgliedern diplomatischer Missionen und konsularischer Vertretungen nach den allgemeinen Regeln des Völkerrechts oder aufgrund besonderer übereinkünfte zustehen.

ARTIKEL 31 – PROTOKOLL

Das angefügte Protokoll ist Bestandteil dieses Abkommens.

ARTIKEL 32 – INKRAFTTRETEN

(1) Dieses Abkommen bedarf der Ratifikation; die Ratifikationsurkunden werden danach so bald wie möglich in Berlin ausgetauscht.

(2) Dieses Abkommen tritt am Tag des Austausches der Ratifikationsurkunden in Kraft und ist in beiden Vertragsstaaten anzuwenden

(a) bei den im Abzugsweg erhobenen Steuern auf die Beträge, die am oder nach dem 1. Januar des Kalenderjahrs gezahlt werden, das dem Jahr folgt, in dem das Abkommen in Kraft getreten ist; und

(b) bei den übrigen Steuern auf die Steuern, die für Zeiträume ab dem 1. Januar des Kalenderjahrs erhoben werden, das auf das Jahr folgt, in dem das Abkommen in Kraft getreten ist.

(3) Mit Inkrafttreten dieses Abkommens tritt das Abkommen vom 15. März 1978 zwischen Mauritius und der Bundesrepublik Deutschland zur Vermeidung der Doppelbesteuerung auf dem Gebiet der Steuern vom Einkommen und vom Vermögen und zur Förderung des Handels und der Investitionstätigkeit zwischen den beiden Staaten au?er Kraft und ist nicht mehr anzuwenden hinsichtlich aller Steuern, für die dieses Abkommen gemä? Absatz 2 gilt.

ARTIKEL 33 – KÜNDIGUNG

Dieses Abkommen bleibt auf unbestimmte Zeit in Kraft, jedoch kann jeder der Vertragsstaaten bis zum 30. Juni eines jeden Kalenderjahrs nach Ablauf von fünf Jahren, vom Tag des Inkrafttretens an gerechnet, das Abkommen gegenüber dem anderen Vertragsstaat auf diplomatischem Weg schriftlich kündigen; in diesem Fall ist das Abkommen nicht mehr anzuwenden

(a) bei den im Abzugsweg erhobenen Steuern auf die Beträge, die am oder nach dem 1. Januar des Kalenderjahrs gezahlt werden, das auf das Kündigungsjahr folgt; und

(b) bei den übrigen Steuern auf die Steuern, die für Zeiträume ab dem 1. Januar des Kalenderjahrs erhoben werden, das auf das Kündigungsjahr folgt.

Ma?gebend für den Zeitpunkt des Au?erkrafttretens dieses Abkommens ist der Tag des Eingangs der Kündigung bei dem anderen Vertragsstaat.

PROTOKOLL

ZU DEM AM 7 OCTOBER 2011 UNTERZEICHNETEN ABKOMMEN

ZWISCHEN

DER REPUBLIK MAURITIUS

UND

DER BUNDESREPUBLIK DEUTSCHLAND

ZUR VERMEIDUNG DER DOPPELBESTEUERUNG UND DER STEUERVERKürZUNG AUF DEM GEBIET DER STEUERN VOM EINKOMMEN

Die Republik Mauritius und die Bundesrepublik Deutschland haben ergänzend zum Abkommen vom 7 October 2011 zur Vermeidung der Doppelbesteuerung und der Steuerverkürzung auf dem Gebie der Steuern vom Einkommen die nachstehenden Bestimmunger vereinbart, die Bestandteil des Abkommens sind –

1. Zu Artikel 4

Der Ausdruck “allgemeine mauritische Steuer” bedeutet die für alle Steuerpflichtigen geltende mauritische Steuerregelung in Abgrenzung zu besonderen Steuerregelungen, sofern vorhanden, die eine steuerliche Begünstigung vorsehen.

2. Zu den Artikeln 4 und 22

Es wird davon ausgegangen, dass der Status einer Gesellschaft als in Mauritius ansässige Person und als berechtigte Gesellschaft von de Bestätigung der mauritischen zuständigen Behörde abhängt, dass die in Artikel 4 Absatz 1 Buchstabe a und Artikel 22 Absatz 2 bezeichneten Voraussetzungen erfüllt sind. Bei Meinungsverschiedenheiten zwischen den zuständigen Behörden der beiden Vertragsstaaten sind die Verfahren gemä? Artikel 25 anzuwenden.

3. Zu den Artikeln 6 bis 21

Sind nach diesem Abkommen aus einem Vertragsstaat stammende Einkünfte in diesem Staat ganz oder teilweise von der Steuer befreit und ist nach dem im anderen Vertragsstaat geltenden Recht eine Person hinsichtlich dieser Einkünfte mit dem Betrag dieser Einkünfte, der in den anderen Staat überwiesen oder dort bezogen wird, nicht jedoch mit dem Gesamtbetrag dieser Einkünfte steuerpflichtig, so ist eine nach diesem Abkommen gegebenenfalls vorgesehene Steuerbegünstigung nur auf den Teil der Einkünfte anzuwenden, der im anderen Vertragsstaat besteuert wird.

4. Zu Artikel 7

(a) Verkauft ein Unternehmen eines Vertragsstaats durch eine Betriebsstätte im anderen Vertragsstaat Güter oder Waren oder übt es durch eine Betriebsstätte dort eine Geschäftstätigkeit aus, so werden die Gewinne dieser Betriebsstätte nicht auf der Grundlage des vom Unternehmen hierfür erzielten Gesamtbetrags sondern nur auf der Grundlage des Betrags ermittelt, der der tatsächlichen Verkaufs- oder Geschäftstätigkeit der Betriebsstätte zuzurechnen ist.

(b) Hat ein Unternehmen eine Betriebsstätte im anderen Vertragsstaat, so werden im Fall von Verträgen, insbesondere über Entwürfe, Lieferungen, Einbau oder Bau von gewerblichen, kaufmännischen oder wissenschaftlichen Ausrüstungen oder Einrichtungen oder von öffentlichen Aufträgen, die Gewinne dieser Betriebsstätte nicht auf der Grundlage des Gesamtvertragspreises, sondern nur auf der Grundlage des Teils des Vertrages ermittelt, der tatsächlich von der Betriebsstätte in dem Vertragsstaat durchgeführt wird, in dem die Betriebsstätte liegt. Gewinne aus der Lieferung von Waren an die Betriebsstätte oder Gewinne im Zusammenhang mit dem Teil des Vertrages, der in dem Vertragsstaat durchgeführt wird, in dem der Sitz des Stammhauses des Unternehmens liegt, können nur in diesem Staat besteuert werden.

(c) Vergütungen für technische Dienstleistungen einschlieBlich Studien oder Entwürfe wissenschaftlicher, geologischer oder technischer Art oder für Konstruktionsverträge einschlieblich dazugehöriger Blaupausen oder für Beratungs- oder überwachungstätigkeit gelten als Vergütungen, auf die Artikel 7 des Abkommens anzuwenden ist.

5. Zu den Artikeln 10 und 11

Ungeachtet der Artikel 10 und 11 können Dividenden und Zinsen in dem Vertragsstaat, aus dem sie stammen, nach dem Recht dieses Staates besteuert werden, wenn sie –

(a) auf Rechten oder Forderungen mit Gewinnbeteiligung, einschlieblich der Einkünfte- eines stillen Gesellschafters aus seiner Beteiligung als stiller Gesellschafter oder der Einkünfte aus partiarischen Darlehen oder Gewinnobligationen im Sinne des Steuerrechts der Bundesrepublik Deutschland, beruhen und

(b) bei der Ermittlung der Gewinne des Schuldners dieser Einkünfte abzugsfähig sind.

6. Zu Artikel 18

(a) Es wird davon ausgegangen, dass eine “Körperschaft des öffentlichen Rechts” eine aus öffentlichen Mitteln finanzierte juristische Person des öffentlichen Rechts ist.

(b) Artikel 18 Absatz 1 und 2 ist auch auf Löhne, Gehälter und ähnliche Vergütungen sowie Ruhegehälter anzuwenden, die an natürliche Personen für Dienste gezahlt werden, die dem Goethe-Institut, dem Deutschen Akademischen Austauschdienst (DAAD) und anderen ähnlichen von den zuständigen Behörden der Vertragsstaaten im gegenseitigen Einvernehmen bestimmten Einrichtungen geleistet werden. Werden diese Vergütungen im Gründungsstaat der Einrichtung nicht besteuert, so gilt Artikel 14.

7. Zu den Artikeln 4 und 26

Es wird davon ausgegangen, dass die zuständige Behörde von Mauritius gemäb Artikel 26 Informationen über Personen und insbesondere über Gesellschaften mit einer globalen Geschäftslizenz der Kategorie 2 (Category 2 Global Business Licence) bereitstellt, unabhängig davon, ob diese der allgemeinen mauritischen Steuer unterliegen –

8. Zu Artikel 26

Soweit nach Artikel 26 personenbezogene Daten übermittelt werden, gelten ergänzend die nachfolgenden Bestimmungen –

(a) Die empfangende Stelle kann diese Daten in übereinstimmung mit Artikel 26 Absatz 2 nur zu dem von der übennittelnden Stelle angegebenen Zweck verwenden und unterliegt dabei den durch die übermittelnde Stelle vorgeschriebenen Bedingungen.

(b) Ungeachtet der Bestimmungen des Artikels 26 Abs. 2 können die Informationen für andere Zwecke verwendet werden, wenn sie nach dem Recht beider Staaten für diese anderen Zwecke verwendet werden können und die zuständige Behörde des übermittelnden Staates dieser Verwendung zugestimmt hat. Ohne vorherige Zustimmung der zuständigen Behörde des übermittelnden Staates ist eine Verwendung für andere Zwecke nur zulässig, wenn sie zur Abwehr einer im Einzelfall bestehenden dringenden Gefahr für das Leben, die körperliche Unversehrtheit oder die persönlichen Freiheit einer Person oder für bedeutende Vermögenswerte erforderlich ist und Gefahr im Verzug besteht. In diesem Fall ist die zuständige Behörde des übermittelnden Staates unverzüglich um nachträgliche Genehmigung der Zweckänderung zu ersuchen. Wird die Genehmigung verweigert, ist die weitere Verwendung der Informationen für den anderen Zweck unzulässig; ein durch die zweckändernde Verwendung der Informationen entstandener Schaden ist zu ersetzen.

(c) Die übermittelnde Stelle ist verpflichtet, auf die Richtigkeit der zu übermittelnden Daten und ihre voraussichtliche Erheblichkeit im Sinne des Artikels 26 Absatz 1 Satz 1 und Verhältnismä?igkeit in Bezug auf den mit der übermittlung verfolgten Zweck zu achten. Voraussichtlich erheblich sind die Daten, wenn im konkreten Fall die ernstliche Möglichkeit besteht, dass der andere Vertragsstaat ein Besteuerungsrecht hat, und keine Anhaltspunkte dafür vorliegen, dass die Daten der zuständigen Behörde des anderen Vertragsstaats bereits bekannt sind oder dass die zuständige Behörde des anderen Vertragsstaats ohne die Information von dem Gegenstand des Besteuerungsrechts Kenntnis hätte. Erweist sich, dass unrichtige Daten oder Daten, die nicht übermittelt werden durften, übermittelt worden sind, so ist dies der empfangenden Stelle unverzüglich mitzuteilen. Diese ist verpflichtet, die Berichtigung oder Löschung solcher Daten unverzüglich vorzunehmen. Sind Daten spontan übermittelt worden, hat die empfangende Stelle unverzüglich zu prüfen, ob die Daten für den Zweck erforderlich sind, für den sie übermittelt worden sind. In dem Fall, dass die übermittelten Daten nicht benötigt werden, hat die empfangende Stelle die Daten unverzüglich zu löschen.

(d) Die empfangende Stelle unterrichtet die übermittelnde Stelle auf Ersuchen im Einzelfall zum Zweck der Auskunftserteilung an den Betroffenen über die Verwendung der Daten und die dadurch erzielten Ergebnisse.

(e) Die empfangende Stelle hat den Betroffenen über die bei der übermittelnden Stelle erhobenen Daten zu unterrichten; es sei denn, dass die Daten ohne Ersuchen übermittelt wurden. Die Information kann unterbleiben, soweit und solange eine Abwägung ergibt, dass das öffentliche Interesse an dem Unterbleiben der Information gegenüber dem Informationsinteresse des Betroffenen überwiegt.

(f) Dem Betroffenen ist auf Antrag über die zu ihrer Person übermittelten Daten sowie über deren vorgesehenen Verwendungszweck Auskunft zu erteilen. Buchstabe e Satz 2 gilt entsprechend.

(g) Wird jemand im Zusammenhang mit übermittlungen im Rahmen des Datenaustauschs nach diesem Abkommen rechtswidrig geschädigt, haftet ihm hierfür die empfangende Stelle nach Ma?gabe ihres innerstaatlichen Rechts. Sie kann sich im Verhältnis zum Geschädigten zu ihrer Entlastung nicht darauf berufen, dass der Schaden durch die übermittelnde Stelle verursacht worden ist.

(h) Die übermittelnde und die empfangende Stelle sind verpflichtet, die übermittlung und den Empfang von personenbezogenen Daten aktenkundig zu machen.

(i) übermittelte personenbezogene Daten sind zu löschen, sobald sie für den Zweck, für den sie übermittelt worden sind, nicht mehr erforderlich sind.

(j) Die übermittelnde und die empfangende Stelle sind verpflichtet, die übermittelten personenbezogenen Daten wirksam gegen unbefugten Zugang, unbefugte Veränderung und unbefugte Bekanntgabe zu schützen.

Geschehen zu Port Louis am 7 October 2011 in zwei Urschriften, jede in englischer und deutscher Sprache, wobei jeder Wortlaut gleichermaßen verbindlich ist.

Hon. Charles Gaëtan Xavier-Lue DUVAL

Vice-Prime Minister, Minister of Finance and Economic Development

 

H. E. Dr. Hans-Dieter STELL

 

Ambassador

 

Für die Republik Mauritius

Für die Bundesrepublik Deutschland

_______________

Double Taxation Avoidance Agreement (Federal
Republic of Nigeria) Regulations 2012

[GN 164 of 2012 '” 29 September 2012] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Federal Republic of Nigeria) Regulations 2012.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Federal Republic of Nigeria pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on such date as may be specified by the Minister in a notice to be published in the Gazette.

_______________

SCHEDULE

[Regulation 2]

The Government of the Republic of Mauritius and the Government of the Federal Republic of Nigeria,

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains,

Have agreed as follows:

ARTICLE 1PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2TAXES COVERED

1. This Agreement shall apply to taxes on income and capital gains imposed on behalf of a Contracting State or its political subdivisions or local authorities.

2. There shall be regarded as taxes on income and capital gains, all taxes imposed on total income and capital gains or on elements of income and capital gains.

3. The existing taxes to which this Agreement shall apply are in particular:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in Nigeria,

(i) the personal income tax;

(ii) the companies income tax;

(iii) the petroleum profits tax;

(iv) the capital gains tax; and

(v) the education tax;

(hereinafter referred to as "Nigerian tax").

4. This Agreement shall also apply to any other taxes of a substantially similar character which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of changes which have been made in their respective taxation laws.

ARTICLE 3GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Nigeria" means the Federal Republic of Nigeria including any area outside the territorial waters of the Federal Republic of Nigeria which in accordance with international law has been or may hereafter be designated, under the laws of the Federal Republic of Nigeria concerning the Continental Shelf as an area within which the rights of the Federal Republic of Nigeria with respect to the sea-bed and sub-soil and their natural resources may be exercised;

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Nigeria, as the context requires;

(d) the term "company" means any body corporate or any entity which is treated as a body corporate under the taxation laws in force of each Contracting State;

(e) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or his authorised representative; and

(ii) in Nigeria, the Minister of Finance or his authorised representative;

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except where the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "national" means any individual having the citizenship or nationality of a Contracting State and any legal person, partnership (societe) or association deriving its status as such from the laws in force in a Contracting State;

(i) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes; and

(j) the term "tax" means Mauritius tax or Nigerian tax, as the context requires.

2. As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

ARTICLE 4RESIDENT

1. For the purposes of this Agreement, 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, place of incorporation or any other criterion of a similar nature and also includes that State and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him. If he has a permanent home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall settle the question of residence by mutual agreement, due regard being had to its registered office, place of effective management or incorporation.

ARTICLE 5PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(h) an installation or structure used for the exploration of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or construction, installation or assembly project, or supervisory activities in connection therewith only if the site, project or activity lasts more than 6 months.

(b) the furnishing of services including consultancy services by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 6 months within any 12-month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. The term "permanent establishment" shall include a fixed place of business used as a sales outlet notwithstanding the fact that such fixed place of business is otherwise maintained for any of the activities mentioned in paragraph 4 of this Article.

6. A person, other than an agent of an independent status to whom paragraph 7 of this Article applies, who acts in a Contracting State on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment of that enterprise in the first mentioned State if:

(a) he has, and habitually exercises in that State, an authority to conclude contracts or carries on any business activities on behalf of the enterprise, unless his activities are limited to those specified in paragraph 4 of this Article; or

(b) he habitually secures orders for the sale of goods or merchandise in that State exclusively or almost exclusively on behalf of the enterprise or other enterprises controlled by it or which have a controlling interest in it.

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.

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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, may be taxable in the Contracting State in which such property is situated.

2. 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, 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 shall apply to income derived from the direct use, letting or use in any other form 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 independent personal services.

ARTICLE 7BUSINESS PROFITS

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, sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment or other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment.

2. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in determining the profits of a permanent establishment, of amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

4. In so far 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, nothing in paragraph 2 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.

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 of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8SHIPPING AND AIR TRANSPORT

1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic, including profits derived from the rental of containers which are incidental to the operation of ships or aircraft in international traffic, shall be taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9ASSOCIATED ENTERPRISES

1. Where:

(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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10DIVIDENDS

1. Dividends derived from a company which is a resident of a Contracting State by a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends 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 dividends, the tax so charged shall not exceed 7½ per cent of the gross amount of the dividends.

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 Contracting State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

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 in so far as such dividends are paid to a resident of that other State or in so far 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 undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11INTEREST

1. Interest derived from a Contracting State by a resident of the other Contracting State may be taxed in that other State.

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 7½ per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, interest arising in a Contracting State shall be exempt from tax in that State if it is derived and beneficially owned by the Government of the other Contracting State or a local authority thereof or agency or instrumentality of that Government or local authority.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

5. The provisions of paragraphs 1 and 2 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

7. 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 a 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 Agreement.

ARTICLE 12ROYALTIES

1. Royalties derived from a Contracting State by a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State from which they are derived and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 7½ per cent of the gross amount of the royalties.

3. In this Article the term "royalties" means payment of any kind received as consideration for the use of, or the right to use any copyright of literary, artistic or scientific work including cinematograph film and films or tapes used for radio and television broadcasting, any patent, trade mark, design, model, computer program, plan, secret formula or process or for the use of, or the right to use industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

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 a Contracting State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

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 royalties paid, 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 a 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 Agreement.

ARTICLE 13CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose 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 taxed in that other State.

3. Gains derived by a resident of a Contracting State from the alienation of any equipment used in the other Contracting State may be taxed in that other Contracting State provided that the equipment is disposed of to a resident of that other Contracting State.

4. Gains derived by an enterprise of a Contracting State from the alienation of ships and aircraft operated in international traffic, shall be taxable only in that Contracting State.

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.

ARTICLE 14INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19 and 20, 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any 12-month period commencing or ending in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State of which the enterprise deriving the profits from the operation of the ship or aircraft is a resident.

ARTICLE 16DIRECTORS' FEES

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.

ARTICLE 17ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, 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.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities, referred to in paragraph 1, performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by funds of either Contracting State, a local authority or public institution thereof.

ARTICLE 18PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar payments arising in a Contracting State and paid in consideration of past employment to a resident of the other Contracting State, shall be taxable only in that other State.

2. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State.

ARTICLE 19GOVERNMENT SERVICE

1. (a) Salaries, wages, and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision, local authority or statutory body thereof to an individual in respect of services rendered to that State or subdivision, authority or body shall be taxable only in that State.

(b) However, such salaries, wages and other similar 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:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision, local authority or statutory body thereof to an individual in respect of services rendered to that State or subdivision, authority or body shall be taxable only in that State.

(b) 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.

3. The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State, or a political subdivision, local authority or statutory body thereof.

ARTICLE 20PROFESSORS AND TEACHERS

1. Notwithstanding the provisions of Article 15, a professor or teacher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college, school or other educational institution in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State, provided that such remuneration is derived by him from outside that State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 21STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who, immediately before visiting a Contracting State is or was resident of the other Contracting State and who is present in the first-mentioned Contracting State primarily for the purpose of his education or training shall be exempt from tax in that first-mentioned Contracting State on payments, other than income of the recipient, made to him by persons residing outside that first-mentioned Contracting State for the purposes of his maintenance, education or training.

ARTICLE 22OTHER INCOME

Items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement and arising in the other Contracting State may be taxed in that other State.

ARTICLE 23ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) Where a resident of Mauritius derives income or gains from Nigeria the amount of tax on that income or gains payable in Nigeria in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident.

(b) Where a company which is a resident of Nigeria pays a dividend to a resident of Mauritius who controls, directly or indirectly, at least 5 per cent of the capital of the company paying the dividend, the credit shall take into account (in addition to any Nigerian tax for which credit may be allowed under the provisions of subparagraph (a) of this paragraph) the Nigerian tax payable by the first-mentioned company in respect of the profits out of which such dividend is paid:

Provided that any credit allowed under subparagraphs (a) and (b) shall not exceed the Mauritius tax (as computed before allowing any such credit), which is appropriate to the profits, income or gains derived from sources within Nigeria.

2. In the case of Nigeria,

(a) Mauritian tax payable under the laws of Mauritius and in accordance with this Agreement, whether directly or by deduction, on profits, income or chargeable gains from sources within Mauritius (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) shall be allowed as a credit against any Nigerian tax computed by reference to the same profits, income or chargeable gains by reference to which Mauritian tax is computed.

(b) In the case of a dividend paid by a company which is a resident of Mauritius to a company which is resident in Nigeria and which controls directly or indirectly at least 10 per cent of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Mauritian tax for which credit may be allowed under the provisions of sub-paragraph (a) of this paragraph) the Mauritian tax payable by the company in respect of the profits out of which such dividend is paid:

Provided that any credit allowed under subparagraphs (a) and (b) shall not exceed the Nigerian tax (as computed before allowing any such credit), which is appropriate to the profits, income or gains derived from sources within Mauritius.

3. For the purposes of allowance as a credit the tax payable in Mauritius or Nigeria as the context requires, shall be deemed to include the tax which is otherwise payable in either of the two Contracting States but has been reduced or waived by either State in order to promote its economic development.

ARTICLE 24NON-DISCRIMINATION

1. The 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.

2. 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.

3. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

4. Nothing in this Article shall 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 to its own residents.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 25MUTUAL AGREEMENT PROCEDURE

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 the provisions of this Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

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.

ARTICLE 26EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement in so far as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts or administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. 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.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

ARTICLE 27MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 28ENTRY INTO FORCE

1. Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income or gains for any income year beginning on or after the first day of July next following the date upon which this Agreement enters into force; and

(b) in Nigeria:

(i) in respect of withholding tax on income and taxes on capital gains derived by a non-resident, in relation to income and capital gains derived on or after 1st January in the calendar year immediately following that in which the Agreement enters into force;

(ii) in respect of other taxes, in relation to income of any basis period beginning on or after 1st January in the calendar year immediately following that in which the Agreement enters into force.

ARTICLE 29TERMINATION

1. This Agreement shall continue in force until terminated. Either of the Contracting States may through diplomatic channels give written notice of termination at least six months before the end of any calendar year. In such event the Agreement shall cease to be effective:

(a) in Mauritius, on income or gains for any income year beginning on or after the first day of July next following the calendar year in which such notice is given; and

(b) in Nigeria:

(i) in respect of withholding tax on income and taxes on capital gains derived by a non-resident, in relation to income and capital gains derived on or after 1st January in the calendar year immediately following that in which the notice of termination is given;

(ii) in respect of other taxes, in relation to income of any basis period beginning on or after 1st January in the calendar year immediately following that in which the notice of termination is given.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have this Protocol.

DONE in duplicate in English in Mauritius this 10th day of August of the year 2012.

Hon. Charles Gaëtan Xavier Luc Duval, G.C.S.K.

Hon. Dr. Ngozi Okonjo Iweala, CFR

Vice Prime Minister, Minister of Finance and Economic Development

For the Government of the Republic of Mauritius

Coordinating Minister for the Economy and Hon. Minister of Finance

For the Government of the Federal Republic of Nigeria

PROTOCOL

At the signing today of the Agreement between The Government of the Republic of Mauritius and The Government of the Federal Republic of Nigeria for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, the undersigned have agreed that the provisions of Articles 10, 11, and 12 shall not apply if the right giving rise to the dividends, interest or royalties, as the case may be, was created or assigned mainly for the purpose of taking advantage of those Articles and not for bona-fide commercial reasons.

IN WITNESS WHEREOF, the undersigned, being duly authorised thereto by their respective Governments, have this Protocol.

DONE in duplicate in English in Mauritius this 10th day of August of the year 2012.

Hon. Charles Gaëtan Xavier Luc Duval, G.C.S.K.

Hon. Dr. Ngozi Okonjo Iweala, CFR

Vice Prime Minister, Minister of Finance and Economic Development
For the Government of the Republic of Mauritius

Coordinating Minister for the Economy and Hon. Minister of Finance
For the Government of the Federal Republic of Nigeria

________________

Double Taxation Avoidance Agreement (Federation of Russia) Regulations 1995

[GN 164 of 1995 – 20 October 1995] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Federation of Russia) Regulations 1995.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Russian Federation pursuant to section 76 of the Act and set out in the Schedule.

3. The Agreement shall come into operation on the date specified in Article 27 thereof.

______________

SCHEDULE

[Regulation 2]

AGREEMENT

between the

Government of the Republic of Mauritius

and the

Government of the Russian Federation

for the

Avoidance of Double Taxation

and the

Prevention of Fiscal Evasion

with Respect

to

Taxes on Income

The Government of the Republic of Mauritius and the Government of the Russian Federation,

Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income,

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed in a Contracting State irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income.

3. The existing taxes to which this Agreement shall apply are in particular:

(a) in Mauritius, the income tax;

(hereinafter referred to as "Mauritius tax");

(b) in the case of Russia, the taxes on income and profits imposed in accordance with the following Laws of the Russian Federation:

(i) "On taxes on profits of enterprises and organisations; and

(ii) On the income tax on individuals"

(hereinafter referred to as "Russian Tax").

4. This Agreement shall also apply to any other taxes of a substantially similar character which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

5. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.

ARTICLE 3 – GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which has been or may hereafter be designated, in accordance with international law and under the laws of Mauritius as an area, including the continental shelf, within which the sovereign rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Russia" means the Russian Federation and when used in a geographical sense, means its territory, including internal waters and territorial sea, air space above them as well as exclusive economic zone and continental shelf where the Russian Federation exercises sovereign rights and jurisdiction in conformity with federal and international law;

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Russia as the context requires;

(d) the term "person" includes an individual, an enterprise, a company, a trust and any other body of persons;

(e) the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax purposes;

(f) 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;

(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;

(h) the term "competent authority" means:

(i) in Mauritius, the Minister of Finance or his authorised representative; and

(ii) in Russia, the Ministry of Finance of the Russian Federation or its authorised representative;

(i) the term "national" means any individual having the citizenship of a Contracting State.

2. In the application of the provisions of this Agreement by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that State.

In case of any divergence between the law of that State relating to the taxes which are the subject of this Agreement and the other branches of the law of that State, the law relating to the taxes which are the subject of this Agreement shall prevail.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, 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 registration, place of management or any other criterion of a similar nature. This term does not include any person who is liable to tax in respect only of income from sources in that State.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(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 home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have 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;

(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 of which he is a national;

(d) if each State considers him to be its national or if he is a national of neither of the two States, the competent authority shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the activities of the enterprise of one State is wholly or partly carried on in the other State.

2. The term "permanent establishment" shall include:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(h) an installation used for the exploration of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or a construction, installation or assembly project, or supervisory activities in connection therewith only if the site, project or activity lasts more than 12 months;

(b) the furnishing of services including consultancy services by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 6 months within any 12 month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, a person acting in a Contracting State on behalf of an enterprise of the other Contracting state (other than an agent of an independent status to whom paragraph 6 of his Article applies) notwithstanding that he has no fixed place of business in the first-mentioned State shall be deemed to be a permanent establishment in that State if:

(a) he has, and habitually exercises, a general authority in the first-mentioned State to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or

(b) he maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly delivers goods or merchandise on behalf of the enterprise.

6. 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.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, is taxable in the Contracting State in which such property is situated.

2. 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, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable of 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 form of immovable property.

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

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. Subject to the provisions of paragraph 3, where an enterprise of 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 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 executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere.

4. In so far as it has been customary in a Contracting State to determine 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 paragraph 2 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 in accordance with the general principles contained in this Agreement.

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. Any dispute shall be settled in accordance with the procedure provided for an Article 24.

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

ARTICLE 8 – PROFITS FROM INTERNATIONAL TRAFFIC

1. Profits of an enterprise of a Contracting State from the operation or rental of ships or aircraft in international traffic and the rental of containers and related equipment which is incidental to the operation of ships or aircraft in international traffic shall be taxable only in that State.

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ADJUSTMENTS TO TAXABLE PROFITS

1. Where:

(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.

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 then 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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10 – DIVIDENDS

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.

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 to the beneficial owner shall not exceed:

(a) 5 per cent of the gross amount of the dividends if the resident of the other Contracting State has directly invested in the authorised capital of the company paying the dividends not less than 500,000 United States dollars, or the equivalent in the currency of the first-mentioned Contracting State;

(b) 10 per cent of the gross amount of the dividends in all other cases.

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 income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed only in that other State.

2. The term "interest" as used in this Article means income from debt- claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purposes of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

3. The provisions of paragraph 1 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a public authority created therein, or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

5. 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 a 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed only in that other State.

2. 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 and films, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, computer software, plan, secret formula or process, or for the use of, or the right to use industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a public authority created therein or 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 a Contracting State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

5. 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 royalties paid, 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 a 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 Agreement.

ARTICLE 13 – GAINS FROM ALIENATION OF PROPERTY

1. Gains derived by a resident of a Contracting State from the alienation of immovable property, referred to in Article 6, and situated in the other Contracting State may be taxed in that other State.

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 purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated by an enterprise of a Contracting State in an international traffic shall be taxable only in that State.

4. Gains from the alienation of any property other than that mentioned in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 – INCOME FROM INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15 – INCOME FROM EMPLOYMENT

1. Subject to the provisions of Articles 16, 18, 19 and 20, 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.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated by an enterprise of a Contracting State in international traffic may be taxed in that State.

ARTICLE 16 – DIRECTORS' FEES

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.

ARTICLE 17 – INCOME OF ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Article 14, 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, may be taxed in the Contracting State in which these activities are exercised.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

ARTICLE 18 – PENSIONS

Pensions and other similar remunerations paid from sources in a Contracting State in consideration of past employment may be taxed only in that State.

ARTICLE 19 – INCOME FROM GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by, or out of funds created by, one of the Contracting States or a public authority created therein to an individual in respect of services rendered to that State or authority in the discharge of governmental functions shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident solely for the purpose of rendering the services.

2. The provisions of Articles 15,16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a public authority created therein.

ARTICLE 20 – PAYMENTS TO STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received front outside that first-mentioned State for the purposes of his maintenance education or training.

ARTICLE 21 – OTHER INCOME

1. Subject to the provisions of paragraph 2 of this Article, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Agreement in respect of which he is subject to tax in that State, shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income 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 a right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the. provisions of Article 7 or Article 14, as the case may be, shall apply.

ARTICLE 22 – METHODS OF ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

1. In the case of Mauritius:

(a) Where a resident of Mauritius derives income referred to in Article 10 from Russia, Mauritius shall exempt that income from tax.

(b) Where a resident of Mauritius derives income other than that referred to in subparagraph (a) above, from Russia, the amount of tax on that income payable in Russia in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident provided that any credit allowed shall not exceed the Mauritius tax (as computed before allowing any such credit) which is appropriate to the profits or income derived from sources within Russia.

2. In the case of Russia, where a resident of Russia derives income which, in accordance with the provisions of this Agreement, may be taxed in Mauritius, the amount of tax on that income payable in Mauritius may be credited against the tax imposed on the resident of Russia. The amount of credit, however, shall not exceed the amount of the tax on that income computed in accordance with the taxation laws and regulations of Russia.

ARTICLE 23 – NON-DISCRIMINATION

1. The 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 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.

2. 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.

3. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

4. Nothing in this Article shall 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 to its own residents.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 24 – MUTUAL AGREEMENT PROCEDURE

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 Agreement, 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 23, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement

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 representatives of the competent authorities.

ARTICLE 25 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement in so far as the taxation thereunder is not contrary to the Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as confidential in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts or 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 this Agreement. 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. The competent authorities shall, through consultation, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of information shall be made, including, where appropriate, exchanges of information regarding tax avoidance.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting Stale the obligation:

(a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;

(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;

(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.

3. For the purposes of this Article the term "competent authorities" includes, in the case of Russia, the State Tax Service of the Russian Federation

ARTICLE 26 – MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of member of diplomatic missions and consular posts under the general rules of international law or under the provisions of special agreements.

ARTICLE 27 – ENTRY INTO FORCE

1. Each of the Contracting States shall notify to the other in writing through the diplomatic channel the completion of the internal procedures for the entering into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications.

2. The provisions of this Agreement shall apply:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the date upon which the Agreement enters into force; and

(b) in Russia, in respect of income derived on or after the first day of January of the calendar year next following that of the entry into force of the Agreement.

ARTICLE 28 – TERMINATION

1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than 30 June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in Mauritius, on income for any income year beginning on or after the first day of July next following the calendar year in which such notice is given; and

(b) in Russia, in respect of income derived on or after the first day of January of the calendar year next following that in which such notice is given.

DONE at Moscow this twenty-fourth day of August 1995, in duplicate, in Russian and English languages, both texts being equally authentic.



Ramakrishna Sithanen S.Shakalov
Minister of Finance Deputy Minister of Finance
For the Government of the Republic of Mauritius For the Government of the Russian Federation

_______________

Double Taxation Avoidance Agreement (France) Regulations 1981

[GN 192 of 1981 – 1 August 1981] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (France) Regulations 1981.

2. In these regulations –

"Act" means the Income Tax Act;

"Agreement" means the Convention entered by the Government of Mauritius with the Government of the Republic of France pursuant to section 76 of the Act and set out in the First Schedule as amended by the Protocol;

"Protocol" means the Protocol amending the Convention between the Government of Mauritius and the Government of the Republic of France for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital, signed at Port Louis on 23 June 2011, and set out in the Schedule.

[Reg. 2 amended by reg. 3 of GN 151 of 2011 w.e.f. 6 August 2011.]

3.

[Agreement c.i.o. 17 September 1982.]

–––––––––––––––

FIRST SCHEDULE

[Regulation 2]

CONVENTION

BETWEEN

MAURITIUS

AND

THE REPUBLIC OF FRANCE

For the Avoidance of Double Taxation with respect of Taxes on Income and Capital

The Government of Mauritius

and

The Government of the French Republic

Desiring to conclude a Convention for the avoidance of double taxation with respect to taxes on income and on capital

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Convention shall apply to persons who are residents of one or both of the States.

ARTICLE 2 – TAXES COVERED

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a State or of its local authorities irrespective, of the manner in which they are levied.

2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

3. The existing taxes to which the Convention shall apply are:

(a) in the case of France:

(i) the income tax;

(ii) the corporation tax;

(including any withholding tax, prepayment (précompte) or advance payment with respect to the aforesaid taxes;

(hereinafter referred to as "French tax");

(b) in the case of Mauritius:

– the income tax;

(hereinafter referred to as "Mauritius tax").

4. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the States shall notify each other of substantial changes which have been made in their respective taxation laws.

ARTICLE 3 – GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires:

(a) the terms "a State" and "the other State" mean France or Mauritius, as the case may be; the term "both States" means France and Mauritius;

(b) the term "person" includes an individual, a company and any other body of persons;

(c) the term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes; this term also means a "company" within the meaning of the laws of Mauritius;

(d) the terms "enterprise of a State" and "enterprise of the other State" mean respectively an enterprise carried on by a resident of a State and an enterprise carried on by a resident of the other State;

(e) the term "nationals" means:

(i) all individuals possessing the nationality of a State;

(ii) all legal persons, partnerships and associations deriving their status as such from the laws in force in a State.

(f) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a State except when the ship or aircraft is operated solely between places in the other State;

(g) the term "competent authority" means:

(i) in the case of France, the Minister of Budget or his authorized representative;

(ii) in the case of Mauritius, the Minister of Finance or his authorized representative, the Commissioner of Income Tax.

2. As regards the application of the Convention by a State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to which the Convention applies.

ARTICLE 4 – RESIDENT

1. For the purposes of this Convention, the term "resident of a 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 sources in that State or capital situated therein.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both States, then his status shall be determined as follows:

(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 home 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);

(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;

(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 of which he is a national;

(d) if he is a national of both States or of neither of them, the competent authorities of both States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" includes especially:

(a) a place of management,

(b) a branch,

(c) an office,

(d) a factory,

(e) a workshop,

(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources, and

(g) a farm or plantation.

3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.

4. An enterprise shall be deemed to have a permanent establishment in a State if it carries on supervisory activities, for a period of more than six months, in connection with a building site or construction or installation project situated in that State.

5. Notwithstanding the preceding provisions of this Article the term "permanent establishment'' shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

(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;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

6. 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 on behalf of an enterprise and has, and habitually exercises, in a State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 5 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.

7. (a) An enterprise shall not be deemed to have a permanent establishment in a 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.

(b) Notwithstanding the provisions of sub-paragraph (a), an enterprise of a State shall be deemed to have a permanent establishment in the other State if an agent, although being of an independent status, carries on his activity in that other State exclusively or almost exclusively for the enterprise and is controlled by the enterprise.

8. The fact that a company which is a resident of a State controls or is controlled by a company which is a resident of the other State or which carries on business in that other State (whether through a permanent establishment or otherwise) shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a State from immovable property (including income from agriculture or forestry) situated in the other State may be taxed in that other State.

2. The term "immovable property" shall have the meaning which it has under the law of the 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, 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 and aircraft shall not be regarded as immovable property.

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

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

1. The profits of an enterprise of a State shall be taxable only in that State unless the enterprise carries on business in the other 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 the permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a State carries on business in the other State through a permanent establishment situated therein, there shall in each 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. (a) For 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 executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

(b) However, amounts paid by the permanent establishment to the enterprise, by way of royalties or similar payments as a consideration for the use of patents or similar rights or by way of interest from money lent by the enterprise to the permanent establishment, are allowed as deductions expenses only if they correspond to actual expenses of the enterprise.

(c) In the case of banking institutions, the provisions of sub-paragraph (b) above shall not apply to interest paid by the permanent establishment to the enterprise.

4. Insofar as it has been customary in a 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, nothing in paragraph 2 shall preclude that 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.

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 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.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits from the operation of ships or aircraft in international traffic shall be taxable only in the State in which the place of effective management of the enterprise is situated.

2. If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the State of which the operator of the ship is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

Where –

(a) an enterprise of a State participates directly or indirectly in the management, control or capital of an enterprise of the other State, or

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

ARTICLE 10 – DIVIDENDS

1. Dividends paid by a company which is a resident of a State to a resident of the other State may be taxed in that other State.

2. However, such dividends may also be taxed in the 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:

(a) five per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends;

(b) fifteen per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a resident of Mauritius to a resident of France may be taxed in Mauritius and according to the laws of Mauritius, as long as dividends paid by companies which are residents of Mauritius are allowed as deductible expenses for determining their taxable profits. However, the tax charged shall not exceed the rate of the Mauritius tax on profits of companies.

4. (a) Dividends paid by a company which is a resident of France, which, if received by a resident of France, would entitle such resident to a tax credit (avoir fiscal), when they are paid to recipients which are residents of Mauritius, entitle such recipients to a payment by the French Treasury of an amount equal to such tax credit (avoir fiscal) subject to the deduction of the tax provided for in sub-paragraph (b) of paragraph 2.

(b) The provision of sub-paragraph (a) shall apply only to the following recipients which are residents of Mauritius.

(i) individuals who are subject to Mauritius tax in respect of the total amount of the dividends paid by the company which is a resident of France and of the payment which corresponds to these dividends and which is mentioned in subparagraph (a).

(ii) companies which are subject to Mauritius tax in respect of the total amount of the dividends paid by the company which is a resident of France and of the payment which corresponds to these dividends and which is mentioned in sub-paragraph (a) and which own directly or indirectly less than ten per cent of the share capital of the French Company paying the dividends.

5. Unless he receives the payment provided for in paragraph 4, a resident of Mauritius who receives dividends paid by a company which is a resident of France may obtain the refund of the prepayment (précompte) relating to such dividends, in the event it had been paid by such company. Such refund shall be taxable in France according to the provisions of paragraph 2.

The gross amount of the prepayment (précompte) refunded shall be deemed to be dividends for the purposes of the provisions of this Convention.

6. The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, 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.

7. The provisions of paragraphs 1 to 5 shall not apply if the beneficial owner of the dividends, being a resident of a State, carries on business in the other 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, as the case may be, shall apply.

8. Where a company which is a resident of a State derives profits or income from the other State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends 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.

ARTICLE 11 – INTEREST

1. Interest arising in a State and paid to a resident of the other State may be taxed in that other State.

2. However, such interest may also be taxed in the State in which it arises, and according to the laws of that State.

3. Notwithstanding the provisions of paragraph 2, any such interest as is mentioned in paragraph 1 shall be taxable only in the State of which the recipient is a resident, if such recipient is the beneficial owner of the interest and if such interest is paid to that State, to a public body of that State or to a banking institution of that State.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from Government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a State carries on business in the other 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, as the case may be, shall apply.

6. Interest shall be deemed to arise in a State when that payer is that State itself, a local authority, a public body or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a State or not, has in a 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.

7. 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 State, due regard being had to the other provisions of this Convention.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a State and paid to a resident of the other State may be taxed in that other State.

2. However, such royalties may also be taxed in the State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed fifteen per cent of the gross amount of the royalties.

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 cinematographic films and works recorded for broadcasting or television, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

4. Notwithstanding the provisions of paragraph 2, 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 cinematographic films and works recorded for broadcasting or television shall be taxable only in the State of which the recipient is a resident, if such recipient is the beneficial owner of the payments.

5. The provisions of paragraphs 1, 2 and 4 shall not apply if the beneficial owner of the royalties, being a resident of a State, carries on business in the other 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 or property in respect of which the royalties are 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.

6. Royalties shall be deemed to arise in a State when the payer is that State itself, a local authority, a public body or a resident of that State. Where however, the person paying the royalties, whether he is a resident of a State or not, has in a State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

7. 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 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 State, due regard being had to the other provisions of this Convention.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a State from the alienation of immovable property referred to in Article 6 and situated in the other State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a State has in the other State or of movable property pertaining to a fixed base available to a resident of a State in the other State for the purpose 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 taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the State of which the alienator is a resident.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a State in respect of professional services or other activities of an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a State in respect of an employment shall be taxable only in that State unless the employment is exercised, in the other State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a State in respect of an employment exercised in the other State shall be taxable only in the first mentioned State if:

(a) the recipient is present in the other State for a period or periods, not exceeding in the aggregate 183 days in the fiscal year concerned, and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived from an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the State in which the place of effective management of the enterprise is situated.

ARTICLE 16 – DIRECTORS' FEES

Directors' fees and other similar payments derived by a resident of a State in his capacity as a member of the board of directors of a company which is a resident of the other State may be taxed in that other State.

ARTICLE 17 – ARTISTS AND ATHLETES

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as an athlete, from his personal activities as such exercised in the other State may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer or athlete himself but to another person that income may, notwithstanding the provisions of Articles 7, 14 and 15 be taxed in the State in which the activities of the entertainer or athlete are exercised.

3. Notwithstanding the provisions of paragraph 1, remuneration or profits, and wages, salaries and other similar income derived by an entertainer or an athlete, who is a resident of a State, from his personal activities as such exercised in the other State, shall be taxable only in the first-mentioned State if these activities in the other State are supported substantially by public funds of the first mentioned State, one of its local authorities or of a public body thereof.

4. Notwithstanding the provisions of paragraph 2, where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such in a State accrues not to the entertainer or athlete himself but to another person, that income, notwithstanding the provisions of Articles 7, 14 and 15 shall be taxable only in the other State, if that other person is supported substantially by public funds of that other State, one of its local authorities or of a public body thereof, or if that other person is a non-profit organisation of that other State.

ARTICLE 18 – PENSIONS

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a State in consideration of past employment shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph 1, pensions and other payments made under the social security legislation of a State shall be taxable only in that State.

3. The provisions of paragraph 1 shall not apply if the recipient of the income is not subject to tax in respect of such income in the State of which he is a resident and according to the laws of that State. In such a case, such income may be taxed in the State where they arise.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by a State or a local authority thereof, or by a public body thereof, to an individual in respect of services rendered to that State or authority or public body shall be taxable only in that State.

(b) Notwithstanding the provisions of sub-paragraph (a), such remuneration may also be taxed in the other State if the services are rendered in that State and the individual is a resident of that State who

(i) is a national of that State, or

(ii) is not a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a State or a local authority thereof, or by a public body thereof, to an individual in respect of services rendered to that State or authority or public body shall be taxable only in that State.

(b) Notwithstanding the provisions of sub-paragraph (a) such pension may also be taxed in the other State if the individual is a resident of, and a national of, that State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a State or a local authority or a public body thereof.

ARTICLE 20 – STUDENTS

1. Payments which a student or business apprentice who is or was immediately before visiting a State a resident of the other State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments are from sources outside that State.

2. Notwithstanding the provisions of Articles 14 and 15, remuneration which a student or business apprentice who is, or was immediately before visiting a State, a resident of the other State and who is present in the first-mentioned State solely for the purpose of his education or training, derives in respect of services rendered in the first mentioned State shall not be taxed in the first-mentioned State, provided that such services are in connection with his education or training or that the remuneration of such services is necessary to supplement the resources available to him for the purpose of his maintenance.

ARTICLE 21 – TEACHERS AND RESEARCH WORKERS

1. Remuneration which a teacher or a research worker who is or was immediately before visiting a State a resident of the other State, and who is present in the first-mentioned State solely for the purpose of teaching or engaging in research, derives in respect of such activities shall not be taxed in that State for a period not exceeding two years, if such remuneration is liable to tax in the other State.

2. The provisions of paragraph 1 shall not apply to remuneration derived in respect of research undertaken not in the public interest but primarily for the private benefit of a specific person or persons.

ARTICLE 22 – OTHER INCOME

1. Items of income of a resident of a State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.

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 State, carries on business in the other 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.

ARTICLE 23 – CAPITAL

1. Capital represented by immovable property referred to in Article 6, owned by a resident of a State and situated in the other State, may be taxed in that other State.

2. Capital represented by moveable property forming part of the business property of a permanent establishment which an enterprise of a State has in the other State or by moveable property pertaining to a fixed base available to a resident of a State in the other state for the purpose of performing independent personal services may be taxed in that other State.

3. Capital represented by ships and aircraft operated in international traffic and by moveable property pertaining to the operation of such ships and aircraft shall be taxable only in the State in which the place of effective management of the enterprise is situated.

4. All other elements of capital of a resident of a State shall be taxable in that State.

ARTICLE 24 – METHOD FOR ELIMINATION OF DOUBLE TAXATION

Double taxation shall be avoided in the following manner:

1. In the case of Mauritius:

(a) Income other than that referred to in sub-paragraph (b) below shall be exempt from the Mauritius tax referred to in sub-paragraph (b) of paragraph 3 of Article 2 if the income is taxable in France under the Convention.

(b) Income referred to in Articles 10, 11, 12, 14, 16, 17 and in subparagraph (b) of paragraph 1 and in sub-paragraph (b) of paragraph 2 of Article 19 received from France may be taxed in Mauritius in accordance with the provisions of these articles, on their gross amount. The French tax levied on such income entitles residents of Mauritius to a tax credit corresponding to the amount of French tax levied but which shall not exceed the amount of Mauritius tax attributable to such income. Such credit shall be allowed against the tax referred to in sub-paragraph (b) of paragraph 3 of Article 2, in the bases of which such income is included.

(c) Notwithstanding the provisions of sub-paragraphs (a) and (b), Mauritius tax is computed on income chargeable in Mauritius by virtue of the Convention at the rate appropriate to the total of the income chargeable in accordance with the Mauritius laws.

2. In the case of France:

(a) Income other than that referred to in sub-paragraphs (b) and (c) below shall be exempt from the French taxes referred to in subparagraph (a) of paragraph 3 of Article 2 if the income is taxable in Mauritius under the Convention.

(b) Income referred to in Articles 11, 12, 14, 16 and 17 received from Mauritius may be taxed in France in accordance with the provisions of these Articles, on their gross amount. The Mauritius tax levied on such income entitles residents of France to a tax credit corresponding to the amount of Mauritius tax levied.

(c) Income referred to in Article 10 received from Mauritius may be taxed in France in accordance with the provisions of this Article, on their gross amount. The residents of France receiving such income shall be entitled to a tax credit equal to twenty five per cent of the amount of these dividends.

(d) The tax credits referred to in sub-paragraphs (b) and (c) shall not exceed the amount of French tax attributable to the income concerned. They are allowed against taxes referred to in subparagraph (a) of paragraph 3 of Article 2, in the bases of which the income concerned is included.

(e) Notwithstanding the provisions of sub-paragraphs (a) to (d), French tax is computed on income chargeable in France by virtue of the Convention at the rate appropriate to the total of the income chargeable in accordance with the French laws.

ARTICLE 25 – NON-DISCRIMINATION

1. Nationals of a State shall not be subjected in the other 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 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 States.

2. Stateless persons who are residents of a state shall not be subjected in either 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 the State concerned in the same circumstance are or may be subjected.

3. The taxation of a permanent establishment which an enterprise of a State has in the other 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. This provision shall not be construed as obliging a State to grant to residents of the other State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

4. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 7 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a State to a resident of the other State shall, for the purpose 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. Similarly, any debts, of an enterprise of a State to a resident of the other State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

5. Enterprises of a State, the capital of which is wholly or partly owned or controlled directly or indirectly, by one or more residents of the other State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

ARTICLE 26 – MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both of the States result or will result for him in taxation not in accordance with the provisions of 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 State of which he is a resident or, if his case comes under paragraph 1 of Article 25, to that of the State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

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 a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the States.

3. The competent authorities of the States shall endeavour to resolve by mutual agreement any difficulties arising as to the application of the Convention.

In particular, the competent authorities of the State may consult together to endeavour to reach an agreement:

(a) in order that the profits attributable to a permanent establishment situated in a State and owned by an enterprise of the other State may be attributed in the same manner in the two States;

(b) in order that the income receivable by a resident of a State and an associate person referred to in Article 9 who is a resident of the other State may be allocated in the same manner.

They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4. The competent authorities of the 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 States.

5. The competent authorities of the States shall by mutual agreement settle the mode of application of the Convention and, especially, the requirements to which the residents of a State shall be subjected in order to obtain in the other State, the tax reliefs or exemptions provided for by the Convention.

ARTICLE 27 – EXCHANGE OF INFORMATION

1. The competent authorities of the States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the 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 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 or 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 proceeding or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other State;

(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 State;

(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 (ordre public).

ARTICLE 28 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

1. Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions and their personal domestics, of members of consular missions, or of members of permanent missions to international organisations under the general rules of international law or under the provisions of special agreements.

2. Notwithstanding the provisions of Article 4 an individual who is a member of a diplomatic mission, consular post or permanent mission of a State which is situated in the other State or in a third State shall be deemed for the purposes of this Convention to be resident of the sending State if:

(a) in accordance with international law he is not liable to tax in the receiving State in respect of income from sources outside that State or on capital situated outside that State; and

(b) he is liable in the sending State to the same obligations in relation to tax on his total world income or capital as are residents of that State.

3. The Convention shall not apply to international organisations, to organs or officials thereof and to persons who being members of a diplomatic or consular or permanent mission of a third State, are present in a State and are not treated in either State as residents in respect of taxes on income and capital.

ARTICLE 29 – TERRITORIAL SCOPE

1. This Convention shall apply:

(a) in the case of Mauritius, to all the islands, the territorial seas and the continental shelf which, in accordance with international law and the laws of Mauritius are under the jurisdiction of Mauritius;

(b) in the case of France, to the European and overseas departments of the French Republic, and to any area outside the territorial sea of those departments which is, in accordance with international law, an area within which France may exercise rights with respect to the sea bed and sub-soil and their natural resources.

2. This Convention may be extended, either in its entirety or with any necessary modifications, to the overseas territories of the French Republic which impose taxes substantially similar in character to those to which the Convention applies. Any such extension that take effect from such date and subject to such modifications and conditions, including conditions as to termination, as may be specified and agreed between the States in notes to be exchanged through diplomatic channels or in any other manner in accordance with their constitutional procedures.

3. Unless otherwise agreed by both States, the termination of the Convention by one of them under Article 31 shall also terminate, in the manner provided for in that Article, the application of the Convention to any territory to which it has been extended under this Article.

ARTICLE 30 – ENTRY INTO FORCE

1. Each State shall notify to the other the completion of the procedure required by its law for the bringing into force of this Convention. This Convention shall enter into force one month after the date of receipt of the later of these notifications.

2. Its provisions shall apply for the first time:

(a) as regards taxes withheld at source, to amounts payable on or after the date of entry into force of this Convention;

(b) as regards other taxes on income:

– with respect to Mauritius tax, to income derived during the income year in which this Convention entered into force, or relating to the accounting period ending during that year;

– with respect to French tax, to income derived during the calendar year in which this Convention entered into force, or relating to the accounting period ending during that year.

ARTICLE 31 – TERMINATION

1. This Convention shall remain into force indefinitely. However, on and after 1982, each State may, by giving at least six months notice of termination through diplomatic channels, denounce the Convention for the end of a calendar year.

2. In such an event, its provisions shall apply for the last time:

(a) as regards taxes withheld at source, to amounts payable on or before the 31st of December of the calendar year for the end of which the termination has been notified;

(b) as regards other taxes on income:

– with respect to Mauritius tax, to income derived during the income year in which the termination will take effect or relating to the accounting period ending during that year;

– with respect to French tax, to income derived during the calendar year, for the end of which the termination has been notified or relating to the accounting period ending during that year.

ARTICLE 31

TERMINATION

1. This Convention shall remain into force indefinitely. However, on and after 1982, each State may, by giving at least six months notice of termination through diplomatic channels, denounce the Convention for the end of a calendar year.

2. In such an event, its provisions shall apply for the last time:

(a) as regards taxes withheld at source, to amounts payable on or before the 31st of December of the calendar year for the end of which the termination has been notified;

(b) as regards other taxes on income:

– with respect to Mauritius tax, to income derived during the income year in which the termination will take effect or relating to the accounting period ending during that year;

– with respect to French tax, to income derived during the calendar year, for the end of which the termination has been notified or relating to the accounting period ending during that year.

In witness whereof, the undersigned have signed this Convention.

Done at Port Louis, Mauritius, this 11th day of December 1980, in duplicate, in the English and French languages, both texts being equally authoritative.

For the Government of
Mauritius

For the Government of the
French Republic

V. RINGADOO

J.J. MANO

PROTOCOL

At the time of signature of the Convention between the Government of Mauritius and the Government of the French Republic for the avoidance of double taxation with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions.

ARTICLE I

1. In respect of paragraph 1(f) of Article 3, the term "international traffic" also means any transport by a container where such transport is supplementary to a transport in international traffic.

2. In respect of Article 6, income from shares, rights or participations in a company or a legal person owning immovable property situated in a State, which, under the laws of that State, is subjected to the same taxation treatment as income from immovable property, may be taxed in that State.

3. (a) In respect of paragraphs 1 and 2 of Article 7, where an enterprise of a State sells goods or merchandise or carries on business in the other State through a permanent establishment situated therein, the profits of this permanent establishment are not determined on the basis of the total amount received by the enterprise, but are determined only on the basis of the remuneration which is attributable to the actual activity of the permanent establishment for such sales or business.

In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment are not determined on the basis of the total amount of the contract, but are determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident.

(b) In respect of paragraph 1 of Article 7, payments of any kind received as a consideration for the use of, or the right to use, industrial, commercial or scientific equipment shall be deemed to be profits of an enterprise to which the provisions of Article 7 apply. Similarly, payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultant or supervisory services shall be deemed to be profits to which the provisions of Article 7 apply.

4. Notwithstanding the provisions of paragraph 8 of Article 10, where a company which is a resident of Mauritius carries on an industrial or commercial activity in France through a permanent establishment situated therein, the profits of this permanent establishment after having borne the Corporation tax, may be taxed at a rate not exceeding fifteen per cent, according to the French laws.

5. In respect of Article 11, interest arising in Mauritius and paid to a resident of France shall be taxable only in France if it is paid in respect of a loan made or guaranteed, or of a credit granted or guaranteed, by the French Bank of External Trade (La Banque Française pour le Commerce Exterieur).

6. (a) In respect of Article 13, gains from the alienation of shares, rights or participations in a company or a legal person owing immovable property situated in a State, which under the laws of that State, are subjected to the same taxation treatment as gains from the alienation of immovable property may be taxed in that State.

(b) Notwithstanding the provisions of paragraph 4 of Article 13, gains from the alienation of shares or rights, forming part of a substantial interest in the capital of a company which is a resident of a State may be taxed in that State, according to the laws of that State. A substantial interest shall be deemed to exist when the alienator, alone or together with associated or related persons, holds, directly or indirectly shares or rights, which together give right to 25 per cent or more of the company profits.

7. In respect of Article 23, elements of capital represented by shares, rights or participations in a company or a legal person owing immovable property situated in a State, which, under the laws of that State are subjected to the same taxation treatment as immovable property, may be taxed in that State.

8. In respect of Article 25:

(a) Nothing in paragraph 1 shall be construed as preventing France from granting only to persons possessing the French nationality the benefit of the exemption of the capital gains derived from the alienation of immovable property or part of immovable property constituting a residence in France of French persons who are not domiciled in France, as provided for in Article 6-II of Law No. 76.660 of July 19, 1976.

(b) Nothing in paragraph 4 shall be construed as preventing France from applying the provisions of Article 212 of the "Code général des Impôts" as regards interest paid by a French company to a foreign parent company.

ARTICLE II

This Protocol shall remain in force as long as the Convention signed this day between the Government of Mauritius and the Government of the French Republic for the avoidance of double taxation with respect to taxes on income and on capital shall remain in force.

Done at Port Louis, Mauritius, this 11th day of December 1980 in duplicate, in the English and French languages, both texts being equally authoritative.

For the Government of
Mauritius

For the Government of the
French Republic

V. RINGADOO

J. J. MANO

_______________

SECOND SCHEDULE

[Regulation 2]

PROTOCOL AMENDING THE CONVENTION BETWEEN THE GOVERNMENT OF MAURITIUS AND THE GOVERNMENT OF THE
FRENCH REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION
WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL

[Second sch. inserted by reg 4(b) of GN 151 of 2011 w.e.f 6 August 2011.]

The Government of the Republic of Mauritius and the Government of the French Republic,

Desiring to amend the Convention between the Government of Mauritius and the Government of the French Republic for the Avoidance of Double Taxation with respect to Taxes on Income and on Capital signed in Port Louis on 11 December 1980 (hereinafter referred to as "the Convention"),

Have agreed as follows:

Article 27 of the Convention shall be deleted and replaced by the following:

ARTICLE 27

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is forseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States or of their local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.

2. Any information received under paragraph 1 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 or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

3. Each Contracting State shall take the necessary measures to ensure the availability of information as well as the ability of its competent authority to access information and to transmit it to its counterpart.

The provisions of paragraphs 1 and 2 shall not be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

ARTICLE 2

1. Each of the Contracting States shall notify to the other the completion of the procedures required, as far as it is concerned, for the bringing into force of this Protocol. The Protocol shall enter into force on the first day of the month following the date of receipt of the later of these notifications.

2. The provisions of this Protocol shall have effect to any calendar year or accounting period beginning on or after the first day of January of the calendar year next following the date of signature of this Protocol.

3. This Protocol shall remain in effect as long as the Convention remains effective.

IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol.

DONE in duplicate at Port Louis on this 23 day of June, 2011, in the French and English languages, both texts being equally authentic.

Hon. Pravind Kumar JUGNAUTH

S.E. Jean-François DOBELLE

Vice-Premier Ministre,

Ambassadeur

Ministre des Finances

POUR LE GOUVERNEMENT

et du Développement Economique

DE LA REPUBLIQUE

POUR LE GOUVERNEMENT

FRANÇAISE

DE LA REPUBLIQUE

 

DE L'lLE MAURICE

 

_______________

CONVENTION

ENTRE

LE GOUVERNEMENT DE L'ILE MAURICE

ET

LE GOUVERNEMENT DE LA RÉPUBLIQUE FRANÇAISE

tendant à éviter les doubles impositions en matiére d'impôts sur le revenu et sur la fortune

Le Gouvernement de l'lle Maurice

et

le Gouvernement de la République Française

Désireux de conclure une Convention tendant à éviter les doubles impositions en matiére d'impôts sur le revenu et sur la fortune,

Sont convenus des dispositions suivantes:

ARTICLE 1 – PERSONNES VISÉES

La présente Convention s'applique aux personnes qui sont des résidents d'un Etat ou des deux Etats.

ARTICLE 2 – IMPOTS VISÉS

1. La présente Convention s'applique aux impôts sur le revenu et sur la fortune perçus pour le compte d'un Etat et de ses collectivités territoriales, quel que soit le systéme de perception.

2. Sont considérés comme impôts sur le revenu et sur la fortune les impôts perçus sur le revenu total, sur la fortune totale, ou sur des éléments du revenu ou de la fortune, y compris les impôts sur les gains provenant de l'aliénation de biens mobiliers ou immobiliers, les impôts sur le montant global des salaires payés par les entreprises, ainsi que les impôts sur les plus-values.

3. Les impôts actuels auxquels s'applique la Convention sont:

(a) en ce qui concerne la France:

(i) l'impôt sur le revenu;

(ii) l'impôt sur les sociétés;

y compris toutes retenues à la source, tous précomptes et avances décomptés sur les impôts visés ci-dessus;

(ci-aprés dénomés "impôts français").

(b) en ce qui concerne l'Ile Maurice:

l'impôt sur le revenu (income tax);

(ci-aprés dénomé "impôt mauricien").

4. La Convention s'applique aussi aux impôts de nature identique ou analogue que seraient établis aprés la date de signature de la Convention et qui s'ajouteraient aux impôts actuels ou qui les remplaceraient. Les autorités compétentes des Etats se communiquent les modifications importantes apportées à leurs législations fiscales respectives.

ARTICLE 3 – DEFINITIONS GÉNÉRALES

1. Au sens de la présente Convention, à moins que le contexte n'exige une interprétation différents:

(a) les expressions "un Etat" et "l'autre Etat" désignent suivant les cas, la France ou l'Ile Maurice; l'expression "les deux Etats" désigne la France et l'Ile Maurice;

(b) le terme "personne" comprend les personnes physiques, les sociétés et tous autres groupements de personnes;

(c) le terme "société" désigne toute personne morale ou toute entité qui est considérée comme une personne morale aux fins d'imposition; il désigne également une "compagnie" (company) au sens de la législation de l'lle Maurice;

(d) les expressions "entreprise d'un Etat" et "entreprise de l'autre Etat" désigne respectivement une entreprise exploitée par un résident d'un Etat et une entreprise exploitée par un résident de l'autre Etat;

(e) le terme "nationaux" désigne:

(i) toutes les personnes physiques qui possédent la nationalité d'un Etat;

(ii) toutes les personnes morales, sociétés de personnes et associations constituées conformément à la législation en vigueur dans un Etat;

(f) l'expression "traffic international" désigne tout transport effectué par un navire ou un aéronef exploité par une entreprise dont le siége de direction effective est situé dans un Etat, sauf lorsque le navire ou l'aéronef n'est exploité qu'entre des points situés dans l'autre Etat;

(g) l'expression "autorité compétente" désigne;

(i) dans le cas de la France, le Ministre du Budget ou son représentant autorisé;

(ii) dans le cas de l'lle Maurice, le Ministre de Finances ou son représentant autorisé, le Commissaire de l'lmpôt sur le Revenu (Commissioner of Income Tax).

2. Pour l'application de la Convention par un Etat, toute expression qui n'y est pas définie a le sens que lui attribue le droit de cet Etat concernant les impôts auxquels s'applique la Convention, à moins que le contexte n'exige une interpretation différente.

ARTICLE 4 – RESIDENT

1. Au sens de la présente Convention, l'expression "résident d'un Etat" désigne toute personne qui, en vertu de la législation de cet Etat, est assujettie à l'impôt dans cet Etat, en raison de son domicile, de sa résidence, de son siége de direction ou de tout autre critére de nature analogue. Toutefois, cette expression ne comprend par les personnes qui ne sont assujetties à l'impôt dans cet Etat que pour les revenus de sources située dans cet Etat ou pour la fortune qui y est située.

2. Lorsque, selon les dispositions du paragraphe 1, une personne physique est un résident des deux Etats, sa situation est réglée de la maniére suivante:

(a) cette personne est considérée comme un résident de l'Etat où elle dispose d'un foyer d'habitation permanent; si elle dispose d'un foyer d'habitation permanent dans les deux Etats, elle est considérée comme un résident de l'Etat avec lequel ses liens personnels et économiques sont les plus étroits (centre des intérêts vitaux);

(b) si l'Etat où cette personne a le centre de ses intérêts vitaux ne peut pas être déterminé, ou si elle ne dispose d'un foyer d'habitation permanent dans aucun des Etats, elle est considérée comme un résident de l'Etat où elle séjourne de façon habituelle;

(c) si cette personne séjourne de façon habituelle dans les deux Etats ou si elle ne séjourne de façon habituelle dans aucun d'eux, elle est considérée comme un résident de l'Etat dont elle posséde la nationalité;

(d) si cette personne posséde la nationalité des deux Etats ou si elle ne posséde la nationalité d'aucun d'eux, les autorités compétentes des deux Etats tranchent la question d'un commun accord.

3. Lorsque selon les dispositions du paragraphe 1, une personne autre qu'une personne physique est résident des deux Etats, elle est considérée comme un résident de l'Etat où son siége de direction effective est situé.

ARTICLE 5 – ÉTABLISSEMENT STABLE

1. Au sens de la présente Convention, l'expression "établissement stable" désigne une installation fixe d'affaires par l'intermédiaire de laquelle une entreprise exerce tout ou partie de son activité.

2. L'expression "établissement stable" comprend notamment:

(a) un siége de direction,

(b) une succursale,

(c) un bureau,

(d) une usine,

(e) un atelier,

(f) une mine, un puits de pétrole ou de gaz, une carriére ou tout autre lieu d'extraction de ressources naturelles et

(g) une ferme ou une plantation.

3. Un chantier de construction ou de montage ne constitue un établissement stable que si sa durée dépasse six mois.

4. On considére qu'une entreprise a un établissement stable dans un Etat si elle exerce des activités de surveillance pendant plus de six mois dans le cadre d'un chantier de construction ou de montage installé dans cet Etat.

5. Nonobstant les dispositions précédentes du présent article, on considére qu'il n'y a pas "établissement stable" si:

(a) il est fait usage d'installations aux seules fins de stockage, d'exposition ou de livraison de marchandises appartenant à l'entreprise;

(b) des marchandises appartenant à l'entreprise sont entreposées aux seules fins de stockage, d'exposition ou de livraison;

(c) des marchandises appartenant à l'entreprise sont entreposées aux seules fins de transformation par une autre entreprise;

(d) une installation fixe d'affaires est utilisée aux seules fins d'acheter des marchandises ou de réunir des informations, pour l'entreprise;

(e) une installation fixe d'affaires est utilisée aux seules fins d'exercer, pour l'entreprise, toute autre activité de caractére préparatoire ou auxiliaire;

(f) une installation fixe d'affaires est utilisée aux seules fins de l'exercice cumulé d'activités mentionnées aux alinéas (a) à (e), à condition que l'activité d'ensemble de l'installation fixe d'affaires résultant de ce cumul garde un caractére préparatoire ou auxiliaire.

6. Nonobstant les dispositions des paragraphes 1 et 2, lorsqu'une personne – autre qu'un agent jouissant d'un statut indépendant auquel s'applique le paragraphe 7 – agit pour le compte d'une entreprise et dispose dans un Etat de pouvoirs qu'elle y exerce habituellement lui permettant de conclure des contrats au nom de l'entreprise, cette entreprise est considérée comme ayant un établissement stable dans cet Etat pour toutes les activités que cette personne exerce pour l'entreprise à moins que les activités de cette personne ne soient limitées à celles qui sont mentionnées au paragraphe 5 et qui si elles étaient exercées par l'intermédiaire d'une installation fixe d'affaires ne permetraient pas de considérer cette installation comme un établissement stable selon les dispositions de ce paragraphe.

7. (a) Une entreprise n'est pas considérée comme ayant un établissement stable dans un Etat du seul fait qu'elle y exerce son activité par l'entremise d'un courtier, d'un commissionaire général ou de tout autre agent jouissant d'un statut indépendant, à conditions que ces personnes agissent dans le cadre ordinaire de leur activité.

(b) Nonobstant les dispositions de l'alinéa (a), une entreprise d'un Etat est considérée comme ayant un établissement stable dans l'autre Etat si un agent, quoique jouissant d'un statut indépendant, exerce son activité dans cet autre Etat d'une façon exclusive ou presque exclusive pour l'entreprise et s'il est contrôlé par elle.

8. Le fait qu'une société qui est un résident d'un Etat contrôle ou est contrôlée par une société qui est un résident de l'autre Etat ou qui exerce son activité (que ce soit par l'intermédiaire d'un établissement stable ou non) ne suffit pas, en lui-même, à faire de l'une quelconque de ces sociétés un établissement stable de l'autre.

ARTICLE 6 – REVENUS IMMOBILIERS

1. Les revenus qu'un résident d'un Etat tire de biens immobiliers (y compris les revenus des exploitations agricoles ou forestiéres) situés dans l'autre Etat, sont imposables dans cet autre Etat.

2. L'expression "biens immobiliers" a le sens que lui attribue le droit de l'Etat où les biens considérés sont situés. L'expression comprend en tous cas les accessoires, le cheptel mort ou vif des exploitations agricoles et forestiéres, les droits auxquels s'appliquent les dispositions du droit privé concernant la propriété fonciére, l'usufruit des biens immobiliers et les droits à des paiements variables ou fixes pour l'exploitation ou la concession de l'exploitation de gisements minéraux, sources et autres ressources naturelles; les navires et aéronefs ne sont pas considérés comme des biens immobiliers.

3. Les dispositions du paragraphe 1 s'applique aux revenus provenant de l'exploitation direct, de la location ou de l'affermage, ainsi que de toute autre forme d'exploitation de biens immobiliers.

4. Les dispositions des paragraphes 1 et 3 s'appliquent également aux revenus provenant des biens immobiliers d'une entreprise ainsi qu'aux revenus des biens immobiliers servant à l'exercice d'une profession indépendante.

ARTICLE 7 – BÉNÉFICES DES ENTREPRISES

1. Les bénéfices d'une entreprises d'un Etat ne sont impossable que dans cet Etat, à moins que l'entreprise n'exerce son activité dans l'autre Etat par l'intermédiaire d'un établissement stable qui y est situé. Si l'entreprise exerce son activité d'une telle façon, les bénéfices de l'entreprise sont imposables dans l'autre Etat mais uniquement dans la mesure où ils sont imputables à cet établissement stable.

2. Sous réserve des dispositions du paragraphe 3, lorsqu'une enterprise d'un Etat exerce son activité dans l'autre Etat par l'intermédiaire d'un établissement stable qui y est situé, il est imputé, dans chaque Etat, à cet établissement stable les bénéfices qu'il aurait pu réaliser s'il avait constitué une entreprise distincte exerçant des activités identiques ou analogues dans des conditions identiques ou analogues et traitant en toute indépendance avec l'entreprise dont il constitue un établissement stable.

3. (a) Pour déterminer les bénéfices d'un établissement stable, sont admises en déduction les dépenses exposées aux fins poursuivies par cet établissement stable, y compris les dépenses de direction et les frais généraux d'administration ainsi exposés, soit dans l'Etat où est situé cet établissement stable, soit ailleurs.

(b) Toutefois les paiements effectués par l'établissement stable à l'éntreprise, sous forme de redevances ou de paiements similaires pour l'usage de brevets ou de droits analogues ou sous forme d'intérêts sur des prêts de l'entreprise à l'établissement stable ne sont déductibles que si elles correspondent à des dépenses effectives de l'entreprise.

(c) Les dispositions de l'alinéa (b) ci-dessus ne s'appliquent pas, dans le cas des établissements bancaires, aux intérêts versés par l'établissement stable à l'entreprise.

4. S'il est d'usage, dans un Etat, de déterminer les bénéfices imputables à un établissement stable sur la base d'une répartition des bénéfices totaux de l'entreprise entre ses diverses parties, aucune disposition du paragraphe 2 n'empêche cet Etat de déterminer les bénéfices imposables selon la répartition en usage; la methode de répartition adoptée doit cependant être telle que le résultat obtenu soit conforme aux principes contenus dans le présent article.

5. Aucun bénéfice n'est imputé à un établissement stable du fait qu'il a simplement acheté des marchandises pour l'entreprise.

6. Aux fins des paragraphes précédents, les bénéfices à imputer à l'établissement stable sont déterminés chaque année selon la même méthode, à moins qu'il n'existe des motifs valables et suffisants de procéder autrement.

7. Lorsque les bénéfices comprennent des éléments de revenu traités séparément dans d'autres articles de la présente Convention, les dispositions de ces articles ne sont pas affectées par les dispositions du présent article.

ARTICLE 8 – NAVIGATION MARITIME ET AERIENNE

1. Les bénéfices provenant de l'exploitation, en traffic international, de navires ou d'aéronefs ne sont imposables que dans l'Etat où le siége de direction effective de l'entreprise est situé.

2. Si le siége de direction effective d'une entreprise de navigation maritime est à bord d'un navire, ce siége est considéré comme situé dans l'Etat où se trouve le port d'attache de ce navire, ou à défaut de port d'attache, dans l'Etat dont l'exploitant du navire est un résident.

3. Les dispositions du paragraphe 1 s'appliquent aussi aux bénéfices provenant de la participation à un groupe, une exploitation en commun ou un organisme international d'exploitation.

ARTICLE 9 – ENTREPRISES ASSOCIÉES

Lorsque:

(a) une entreprise d'un Etat participe directement ou indirectement à la direction, au contrôle ou au capital d'une entreprise de l'autre Etat, ou que

(b) les mêmes personnes participent directement ou indirectement à la direction, au contrôle ou au capital d'une entreprise d'un Etat et d'une entreprise de l'autre Etat,

et que, dans l'un et l'autre cas, les deux entreprises sont, dans leurs relations commerciales ou financiéres, liées par des conditions convenues ou imposées, qui différent de celles qui seraient convenues entre des entreprises indépendantes, les bénéfices qui, sans ces conditions, auraient été réalisés par l'une des entreprises mais n'ont pu l'être en fait à cause de ces conditions, peuvent être inclus dans les bénéfices de cette entreprise et imposés en conséquence.

ARTICLE 10 – DIVIDENDES

1. Des dividendes payés par une société qui est un résident d'un Etat à un résident de l'autre Etat sont imposables dans cet autre Etat.

2. Toutefois, ces dividendes sont aussi imposables dans l'Etat dont la société qui paie les dividendes est un résident, et selon la législation de cet Etat, mais si la personne qui reçoit les dividendes en est le bénéficiaire effectif, l'impôt ainsi établi ne peut excéder:

(a) cinq pour cent du montant brut des dividendes si le bénéficiaire effectif est une société (autre qu'une société de personnes) qui détient directement au moins dix pour cent du capital de la société qui paie les dividendes;

(b) quinze pour cent du montant brut des dividendes, dans tous les autres cas.

Le présent paragraphe n'affecte pas l'imposition de la société au titre des bénéfices qui servent au paiement des dividendes.

3. Nonobstant les dispositions du paragraphe 2, les dividendes payés par une compagnie qui est un résident de l'lle Maurice à un résident de France sont imposables à l'lle Maurice et selon sa législation, aussi longtemps que les dividendes payés par les compagnies qui sont des résidents de l'lle Maurice sont déductibles pour la détermination de leurs bénéfices imposables. Toutefois, l'impôt ainsi établi ne peut excéder le taux de l'impôt mauricien sur les bénéfices des compagnies.

4. (a) Les dividendes payés par une société qui est un résident de France, qui donneraient droit à un avoir fiscal s'ils étaient reçus par une personne qui est un résident de France, ouvrent droit, lorsqu'ils sont payés à des bénéficiaires qui sont des résidents de l'Ile Maurice, à un paiement du Trésor français d'un montant égal à cet avoir fiscal, sous réserve de la déduction de l'impôt prévu à l'alinéa (b) du paragraphe 2.

(b) La disposition de l'alinéa (a) ne s'applique qu'aux bénéficiaires ci-aprés qui sont des résidents de l'Ile Maurice:

(i) Les personnes physiques assujetties à l'impôt mauricien à raison du montant total des dividendes distribués par la société qui est un résident de France et du paiement afférent à ces dividendes, visé à l'alinéa (a);

(ii) Les sociétés assujetties à l'impôt mauricien à raison du montant total des dividendes distribués par la société qui est un résident de France et du paiement afférent à ces dividendes, visé à l'alinéa (a) et qui détiennent, directement ou indirectement, moins de dix pour cent du capital de la société française distributrice.

5. A moins qu'il ne bénéficie du paiement prévu au paragraphe 4, un résident de I'Ile Maurice qui reçoit des dividendes payés par une société qui est un résident de France, peut obtenir le remboursement du précompte afférent à ces dividendes acquitté, le cas échéant, par cette société. Ce remboursement est imposable en France conformément aux dispositions du paragraphe 2.

Le montant brut du précompte remboursé est considéré comme un dividende pour l'application des dispositions de la présente Convention.

6. Le terme "dividendes" employé dans le présent article désigne les revenus provenant d'actions, actions ou bons de jouissance, parts de mine, parts de fondateur ou autres parts bénéficiaires à l'exception des créances, ainsi que les revenus d'autres parts sociales soumis au même régime fiscal que les revenus d'actions par la législation de l'Etat dont la société distributrice est un résident.

7. Les dispositions des paragraphes 1 à 5 ne s'appliquent pas, lorsque le bénéficiaire effectif des dividendes, résident d'un Etat, exerce dans l'autre Etat dont la société qui paie les dividendes est un résident soit une activité industrielle ou commerciale par l'intermédiaire d'un établissement stable qui y est situé, soit une profession indépendante au moyen d'une base fixe qui y est située, et que la participation génératrice des dividendes s'y rattache effectivement. Dans ce cas, les dispositions de l'article 7 ou de l'article 14, suivant le cas, sont applicables.

8. Lorsqu'une société qui est un résident d'un Etat tire des bénéfices ou des revenus de l'autre Etat, cet autre Etat ne peut percevoir aucun impôt sur les dividendes payés par la société, sauf dans la mesure où ces dividendes sont payés à un résident de cet autre Etat ou dans la mesure où la participation génératrice des dividendes se rattache effectivement à un établissement stable ou à une base fixe situé dans cet autre Etat, ni prélever aucun impôt, au titre de l'imposition des bénéfices non distribués de la société, même si les dividendes payés ou les bénéfices non distribués consistent en tout ou en partie en bénéfices ou revenus provenant de cet autre Etat.

ARTICLE 11 – INTÉRÊTS

1. Les intérêts provenant d'un Etat et payés à un résident de l'autre Etat sont imposables dans cet autre Etat.

2. Toutefois, ces intérêts sont aussi imposables dans l'Etat d'ou ils proviennent et selon la législation de cet Etat.

3. Nonobstant les dispositions du paragraphe 2, les intérêts mentionnés au paragraphe 1 ne sont imposables que dans l'Etat dont la personne qui reçoit les intérêts est un résident, si cette personne en est le bénéficiaire effectif et si ceux-ci sont payés à cet Etat, à un organisme public de cet Etat ou à un établissement bancaire de cet Etat.

4. Le terme "intérêts" employé dans le présent article désigne les revenus des créances de toute nature, assorties ou non de garanties hypothécaires ou d'une clause de participation aux bénéfices du débiteur, et notamment les revenus des fonds publics et des obligations d'emprunt, y compris les primes et lots attachés à ces titres. Les pénalisations pour paiement tardif ne sont pas considérées comme des intérêts au sens du présent article.

5. Les dispositions des paragraphes 1, 2 et 3 ne s'appliquent pas, lorsque le bénéficiaire effectif des intérêts, résident d'un Etat, exerce dans l'autre Etat d'où proviennent les intérêts, soit une activité industrielle ou commerciale par l'intermédiaire d'un établissement stable qui y est situé, soit une profession indépendante au moyen d'une base fixe qui y est située, et que la créance génératrice des intérêts s'y rattache effectivement. Dans ce cas, les dispositions de l'article 7 ou de l'article 14, suivant les cas, sont applicables.

6. Les intérêts sont considérés comme provenant d'un Etat lorsque le débiteur est cet Etat lui-même, une collectivité territoriale, une personne morale de droit public ou un résident de cet Etat. Toutefois, lorsque le débiteur des intérêts, qu'il soit ou non un résident d'un Etat a dans un Etat un établissement stable, ou une base fixe pour lequel la dette donnant lieu au paiement des intérêts a été contractée et qui supporte la charge de ces intérêts, ceux-ci sont considérés comme provenant de l'Etat où l'établissement stable ou la base fixe, est situé.

7. Lorsque en raison de relations spéciales existant entre le débiteur et le bénéficiaire effectif ou que l'un et l'autre entretiennent avec de tierces personnes, le montant des intérêts, compte tenu de la créance pour laquelle ils sont payés, excéde celui dont seraient convenus le débiteur et le bénéficiaire effectif en l'absence de pareilles relations, les dispositions du présent article ne s'appliquent qu'à ce dernier montant. Dans ce cas, la partie excédentaire des paiements reste imposable selon la législation de chaque Etat et compte tenu des autres dispositions de la présente Convention.

ARTICLE 12 – REDEVANCES

1. Les redevances provenant d'un Etat et payées à un résident de l'autre Etat sont imposables dans cet autre Etat.

2. Toutefois, ces redevances sont aussi imposables dans l'Etat d'où elles proviennent et selon la législation de cet Etat, mais si la personne qui reçoit les redevances en est le bénéficiaire effectif l'impôt ainsi établi ne peut excéder quinze pour cent du montant brut des redevances.

3. Le terme "redevances" employé dans le présent article désigne les rémunérations de toute nature payées pour l'usage ou la concession de l'usage d'un droit d'auteur sur une oeuvre littéraire, artistique ou scientifique, y compris les films cinématographiques et les oeuvres enregistrées pour la radiodiffusion ou la télévision, d'un brevet, d'une marque de fabrique ou de commerce, d'un dessin ou d'un modéle, d'un plan, d'une formule ou d'un procédé secrets, ainsi que pour des informations ayant trait à une expérience acquise dans le domaine industriel, commercial ou scientifique.

4. Nonobstant les dispositions du paragraphe 2, les rémunérations de toute nature payées pour l'usage ou la concession de l'usage d'un droit d'auteur sur une oeuvre littéraire, artistique ou scientifique, y compris les films cinématographiques et les oeuvres enregistrées pour la radiodiffusion ou la télévision, ne sont imposable que dans l'Etat dont la personne qui reçoit les rémunérations, est un résident, si cette personne en est le bénéficiaire effectif.

5. Les dispositions des paragraphes 1, 2 et 4 ne s'appliquent pas, lorsque le bénéficiaire effectif des redevances, résident d'un Etat, exerce dans l'autre Etat d'où proviennent les redevances, soit une activité industrielle ou commerciale par l'intermédiaire d'un établissement stable qui y est situé, soit une profession indépendante ou moyen d'une base fixe qui y est situé et que le droit ou le bien générateur des redevances s'y rattache effectivement. Dans ce cas, les dispositions de l'article 7 ou de l'article 14, suivant les cas, sont applicables.

6. Les redevances sont considérées comme provenant d'un Etat lorsque le débiteur est cet Etat lui-même, une collectivité territoriale, une personne morale de droit public ou un résident de cet Etat. Toutefois, lorsque le débiteur des redevances, qu'il soit ou non un résident d'un Etat, a dans un Etat un établissement stable, ou une base fixe, auquel se rattache effectivement le droit ou le bien générateur des redevances et qui supporte la charge de ces redevances, celles-ci sont considérées comme provenant de l'Etat où l'établissement stable, ou la base fixe, est situé.

7. Lorsque, en raison de relations spéciales existant entre le débiteur et le bénéficiaire effectif ou que l'un et l'autre entretiennent avec de tierce personnes, le montant des redevances, compte tenu de la prestation pour laquelle elles sont payés, excéde celui dont seraient convenus le débiteur et le bénéficiaire effectif en l'absence de pareilles relations, les dispositions du présent article ne s'appliquent qu'à ce dernier montant. Dans ce cas, la partie excédentaire des paiements reste imposable selon la législation de chaque Etat et compte tenu des autres dispositions de la présente Convention.

ARTICLE 13 – GAINS EN CAPITAL

1. Les gains qu'un résident d'un Etat tire de l'aliénation des biens immobiliers visés à l'article 6 et situés dans l'autre Etat sont imposables dans cet autre Etat.

2. Les gains provenant de l'aliénation de biens mobiliers qui font partie de l'actif d'un établissement stable qu'une entreprise d'un Etat a dans l'autre Etat ou de biens mobiliers qui appartiennent à une base fixe dont un résident d'un Etat dispose dans l'autre Etat pour l'exercice d'une profession indépendante, y compris de tels gains provenant de l'aliénation de cet établissement stable (seul ou avec l'ensemble de l'entreprise) ou de cette base fixe sont imposables dans cet autre Etat.

3. Les gains provenant de l'aliénation de navires ou aéronefs exploités en traffic international ou de biens mobiliers affectés à l'exploitation de ces navires ou aéronefs, ne sont imposables que dans l'Etat où le siége de direction effective de l'entreprise est situé.

4. Les gains provenant de l'aliénation de tous biens autres que ceux visés aux paragraphes 1, 2 et 3 ne sont imposables que dans l'Etat dont le cédant est un résident.

ARTICLE 14 – PROFESSIONS INDÉPENDANTES

1. Les revenus qu'un résident d'un Etat tire d'une profession libérale ou d'autre activités de caractére indépendant ne sont imposables que dans cet Etat, à moins que ce résident ne dispose de façon habituelle dans l'autre Etat d'une base fixe pour l'exercice de ses activités. S'il dispose d'une telle base fixe, les revenus sont imposables dans l'autre Etat mais uniquement dans la mesure où ils sont imputables à cette base fixe.

2. L'expression "profession libérale" comprend notamment les activités indépendantes d'ordre scientifique, littéraire, artistique, éducatif ou pédagogique, ainsi que les activités indépendantes des médecins, avocats, ingénieurs, architectes, dentistes et comptables.

ARTICLE 15 – PROFESSIONS DÉPENDANTES

1. Sous réserve des dispositions des articles 16, 18 et 19, les salaires, traitements et autres rémunérations similaires qu'un résident d'un Etat reçoit au titre d'un emploi salarié ne sont imposables que dans cet Etat, à moins que l'emploi ne soit exercé dans l'autre Etat. Si l'emploi y est exercé, les rémunérations reçues à ce titre sont imposables dans cet autre Etat.

2. Nonobstant les dispositions du paragraphe 1, les rémunérations qu'un résident d'un Etat reçoit au titre d'un emploi salarié exercé dans l'autre Etat ne sont imposables que dans le premier Etat si:

(a) le bénéficiaire séjourne dans l'autre Etat pendant une période ou des périodes n'excédant pas au total 183 jours au cours de l'année fiscale considérée, et

(b) les rémunérations sont payées par un employeur ou pour le compte d'un employeur qui n'est pas un résident de l'autre Etat, et

(c) la charge des rémunérations n'est pas supportée par un établissement stable ou une base fixe que l'employeur a dans I'autre Etat.

3. Nonobstant les dispositions précédentes du présent article les rémunérations reçues au titre d'un emploi salarié exercé à bord d'un navire ou d'un aéronef exploité en trafic international sont imposables dans l'Etat où le siége de direction effective de l'entreprise est situé.

ARTICLE 16 – TANTIÈMES

Les tantiémes, jetons de présence et autres rétribuitions similaires qu'un résident d'un Etat reçoit en sa qualité de membre du conseil d'administration ou de surveillance d'une société qui est un résident de l'autre Etat sont imposables dans cet autre Etat.

ARTICLE 17 – ARTISTES ET SPORTIFS

1. Nonobstant les dispositions des articles 14 et 15, les revenus qu'un résident d'un Etat tire de ses activités personnelles exercées dans l'autre Etat en tant qu'artiste du spectacle, tel qu'un artiste de théâtre, de cinéma, de la radio ou de la télévision, ou qu'un musicien, ou en tant que sportif, sont imposables dans cet autre Etat.

2. Lorsque les revenus d'activités qu'un artiste du spectacle ou un sportif exerce personnellement et en cette qualité sont attribuée, non pas à l'artiste ou au sportif lui-même mais à une autre personne, ces revenus sont imposables, nonobstant les dispositions des articles 7, 14 et 15, dans l'Etat où les activités de l'artiste ou du sportif sont exercées.

3. Nonobstant les dispositions du paragraphe 1, les rémunérations ou bénéfices, et les traitements, salaires et autres revenus similaires qu'un artiste du spectacle ou un sportif, qui est un résident d'un Etat, tire de ses activités personnelles exercées dans l'autre Etat et en cette qualité, ne sont imposables que dans le premier Etat lorsque ces activités dans I'autre Etat sont financées pour une part importante par des fonds publics du premier Etat, de I'une de ses collectivités territoriales, ou de l'une de leurs personnes morales de droit public.

4. Nonobstant les dispositions du paragraphe 2, lorsque les revenus d'activités qu'un artiste du spectacle ou un sportif exerce personnellement et en cette qualité dans un Etat sont attribués non pas à l'artiste ou au sportif lui-même mais à une autre personne, ces revenus ne sont imposables, nonobstant les dispositions des articles 7, 14 et 15, que dans l'autre Etat lorsque cette autre personne est financée pour une part importante par des fonds publics de cet autre Etat, de l'une de ses collectivités territoriales ou de l'une de leurs personnes morales de droit public, ou lorsque cette autre personne est un organisme sans but lucratif de cet autre Etat.

ARTICLE 18 – PENSIONS

1. Sous réserve des dispositions du paragraphe 2 de I'article 19, les pensions et autres rémunérations similaires payées à un résident d'un Etat au titre d'un emploi antérieur, ne sont imposables que dans cet Etat.

2. Nonobstant les dispositions du paragraphe 1, les pensions et autres sommes payées en application de la législation sur la sécurité sociale d'un Etat ne sont imposables que dans cet Etat.

3. Les dispositions du paragraphe 1 ne s'appliquent pas lorsque le bénéficiaire des revenus n'est pas assujetti à I'impôt pour ces revenus dans l'Etat dont il est un résident, selon la législation de cet Etat. Dans ce cas ces revenus sont imposables dans l'Etat d'où ils proviennent.

ARTICLE 19 – FONCTIONS PUBLIQUES

1. (a) Les rémunérations, autres que les pensions, payées par un Etat ou l'une de ses collectivités territoriales ou par l'une de leurs personnes morales de droit public, à une personne physique, au titre de services rendus à cet Etat ou à cette collectivité, ou à cette personne morale de droit public, ne sont imposables que dans cet Etat.

(b) Nonobstant les dispositions de l'alinéa (a), ces rémunérations sont aussi imposables dans l'autre Etat si les services sont rendus dans cet Etat et si la personne physique est un résident de cet Etat qui

(i) posséde la nationalité de cet Etat, ou

(ii) n'est pas un résident de cet Etat à seule fin de rendre les services.

2. (a) Les pensions payées par un Etat ou l'une de ses collectivités territoriales, ou par l'une de leurs personnes morales de droit public, soit directement, soit par prélévement sur des fonds qu'ils ont constitués, à une personne physique, au titre de services rendus à cet Etat ou à cette collectivité, ou à cette personne morale de droit public, ne sont imposables que dans cet Etat.

(b) Nonobstant les dispositions de l'alinéa (a), ces pensions sont aussi imposables dans l'autre Etat si la personne physique est un résident de cet Etat et en posséde la nationalité.

3. Les dispositions des articles 15, 16 et 18 s'appliquent aussi aux rémunérations et pensions payées au titre de services rendus dans le cadre d'une activité industrielle ou commerciale exercée par un Etat ou l'une de ses collectivités territoriales ou par l'une de leurs personnes morales de droit public.

ARTICLE 20 – ETUDIANTS

1. Les sommes qu'un étudiant ou un stagiaire qui est, ou qui était immédiatement avant de se rendre dans un Etat, un résident de l'autre Etat et qui séjourne dans le premier Etat à seule fin d'y poursuivre ses études ou sa formation reçoit pour couvrir ses frais d'entretien, d'études ou de formation ne sont pas imposables dans cet Etat, à condition qu'elles proviennent de sources situées en dehors de cet Etat.

2. Nonobstant les dispositions des articles 14 et 15, les rémunérations qu'un étudiant ou un stagiaire qui est, ou qui était immédiatement avant de se rendre dans un Etat un résident de l'autre Etat et qui séjourne dans le premier Etat à seule fin d'y poursuivre ses études ou sa formation, reçoit au titre de services rendus dans le premier Etat, ne sont pas imposables dans le premier Etat à condition que ces services soient en rapport avec ses études ou sa formation ou que la rémunération de ces services soit nécessaire pour compléter les ressources dont il dispose pour son entretien.

ARTICLE 21 – PROFESSEURS ET CHERCHEURS

1. Les rémunérations qu'un professeur ou un chercheur qui est, ou qui était immédiatement avant de se rendre dans un Etat, un résident de l'autre Etat et qui séjourne dans le premier Etat à seule fin d'y enseigner ou de s'y livrer à des recherches, reçoit au titre de ces activités ne sont pas imposables dans cet Etat pendant une période n'excédant pas deux ans, si ces rémunérations sont assujetties à l'impôt dans l'autre Etat.

2. Les dispositions du paragraphe 1 ne s'appliquent pas aux rémunérations reçues au titre de travaux de recherche entrepris non pas dans l'intérêt public mais principalement en vue de la réalisation d'un avantage particulier bénéficiant à une ou à des personnes déterminées.

ARTICLE 22 – AUTRES REVENUS

1. Les éléments du revenu d'un résident d'un Etat, d'où qu'ils proviennent, qui ne sont pas traitées dans les articles précédents de la présente Convention ne sont imposables que dans cet Etat.

2. Les dispositions du paragraphe 1 ne s'appliquent pas aux revenus autres que les revenus provenant de biens immobiliers tels qu'ils sont définis au paragraphe 2 de l'article 6, lorsque le bénéficiaire de tels revenus, résidant d'un Etat exerce dans l'autre Etat, soit une activité industrielle ou commerciale par l'intermediaire d'un établissement stable qui y est situé, soit une profession indépendante au moyen d'une base fixe qui y est situé, et que le droit ou le bien générateur des revenus s'y rattache effectivement. Dans ce cas, les dispositions de l'article 7 ou de l'article 14, suivant les cas sont applicables.

ARTICLE 23 – FORTUNE

1. La fortune constituée par des biens immobiliers visés à l'article 6, que posséde un résident d'un Etat et qui sont situés dans l'autre Etat, est imposable dans cet autre Etat.

2. La fortune constituée par des biens mobiliers qui font partie de l'actif d'un établissement stable qu'une entreprise d'un Etat a dans l'autre Etat ou par des biens mobiliers qui appartiennent à une base fixe dont un résident d'un Etat dispose dans l'autre Etat pour l'exercice d'une profession indépendante est imposable dans cet autre Etat.

3. La fortune constituée par des navires et des aéronefs exploités en trafic international ainsi que par des biens mobiliers affectés à leur exploitation ne sont imposable que dans l'Etat où le siége de direction effective de l'entreprise est situé.

4. Tous les autres éléments de la fortune d'un résident d'un Etat ne sont imposable que dans cet Etat.

ARTICLE 24 – DISPOSITIONS POUR ELIMINER LES DOUBLES IMPOSITIONS

La double imposition est évitée de la maniére suivante:

1. Dans le cas de l'Ile Maurice:

(a) Les revenus autres que ceux visés à l'alinéa (b) ci-dessous sont exonérés de l'impôt mauricien mentionné à l'alinéa (b) du paragraphe 3 de l'article 2, lorsque ces revenus sont imposables en France en vertu de la Convention.

(b) Les revenus visés aux articles 10, 11, 12, 14, 16, 17 et à l'alinéa (b) du paragraphe 1 et à l'alinéa (b) du paragraphe 2 de l'article 19 provenant de la France sont imposables à l'Ile Maurice conformément aux dispositions de ces articles, pour leur montant brut. L'impôt français perçu sur ces revenus ouvre droit au profit des résidents de l'lle Maurice à un crédit d'impôt correspondant au montant de l'impôt français perçu mais qui ne peut excéder le montant de l'impôt mauricien afférent à ces revenus. Ce crédit est imputable sur l'impôt visé à l'alinéa (b) du paragraphe 3 de l'article 2, dans les bases d'imposition duquel les revenus en cause sont compris.

(c) Nonobstant les dispositions des alinéas (a) et (b), l'impôt mauricien est calculé sur les revenus imposables à l'Ile Maurice en vertu de la Convention, au taux correspondant au total des revenus imposables d'aprés la législation mauricienne.

2. Dans le cas de la France:

(a) Les revenus autres que ceux visés aux alinéas (b) et (c) ci-dessous sont exonérés des impôts français mentionnés à l'alinéa (a) du paragraphe 3 de l'article 2, lorsque ces revenus sont imposables à l'Ile Maurice en vertu de la Convention.

(b) Les revenus visés aux articles 11, 12, 14,16 et 17 provenant de l'Ile Maurice sont imposables en France conformément aux dispositions de ces articles, pour leur montant brut. L'impôt mauricien perçu sur ces revenus ouvre droit au profit des résidents de France à un crédit d'impôt correspondant au montant de l'impôt mauricien perçu.

(c) Les revenus visés à l'article 10 provenant de l'Ile Maurice sont imposables en France conformément aux dispositions de cet article pour leur montant brut. Les résidents de France percevant de tels revenus ont droit à un crédit d'impôt correspondant à vingt cinq pour cent du montant de ces dividendes.

(d) Les crédits visés aux alinéas (b) et (c) ne peuvent excéder le montant de l'impôt français afférent aux revenus en cause. Ils sont imputables sur les impôts visés à l'alinéa (a) du paragraphe 3 de l'article 2, dans les bases d'imposition desquels les revenus en cause sont compris.

(e) Nonobstant les dispositions des alinéas (a) à (d), I'impôt français est calculé, sur les revenus imposables en France en vertu de la Convention, au taux correspondant au total des revenus imposables d'aprés la législation française.

ARTICLE 25 – NON-DISCRIMINATION

1. Les nationaux d'un Etat ne sont soumis dans l'autre Etat à aucune imposition ou obligation y relative, qui est autre ou plus lourde que celles auxquelles sont ou pourront être assujettis les nationaux de cet Etat qui se trouvent dans la même situation. La présente disposition s'applique aussi, nonobstant les dispositions de l'article 1, aux personnes qui ne sont pas des résidents d'un Etat ou des deux Etats.

2. Les apatrides qui sont des résidents d'un Etat ne sont soumis dans I'un ou l'autre Etat à aucune imposition ou obligation y relative qui est autre ou plus lourde que celles auxquelles sont ou pourront être assujettis les nationaux de l'Etat concerné qui se trouvent dans la même situation.

3. L'imposition d'un établissement stable qu'une entreprise d'un Etat a dans l'autre Etat n'est pas établie dans cet autre Etat d'une façon moins favorable que l'imposition des entreprises de cet autre Etat qui exercent la même activité. La présente disposition ne peut être interprétée comme obligeant un Etat à accorder aux résidents de l'autre Etat les déductions personnelles, abattements et réductions d'impôt en fonction de la situation ou des charges de famille qu'il accorde à ses propres résidents.

4. A moins que les dispositions de l'article 9, du paragraphe 7 de l'article 11 ou du paragraphe 7 de l'article 12 ne soient applicables, les intérêts, redevances et autres dépenses payés par une entreprise d'un Etat à un résident de l'autre Etat sont déductibles, pour la détermination des bénéfices imposables de cette entreprise, dans les mêmes conditions que s'il avaient été payés à un résident du premier Etat. De même, les dettes d'une entreprise d'un Etat envers un résident de l'autre Etat, sont déductibles, pour la détermination de la fortune imposable de cette entreprise, dans les mêmes conditions que si elles avaient été contractées envers un résident du premier Etat.

5. Les entreprises d'un Etat, dont le capital est en totalité ou en partie, directement ou indirectement, détenu ou contrôlé par un ou plusieurs résidents de l'autre Etat, ne sont soumises dans le premier Etat à aucune imposition ou obligation y relative, qui est autre ou plus lourde que celles auxquelles sont ou pourront être assujetties les autres entreprises similaires du premier Etat.

6. Les dispositions du présent article s'appliquent, nonobstant les dispositions de l'article 2, aux impôts de toute nature ou dénomination.

ARTICLE 26 – PROCÉDURE AMIABLE

1. Lorsqu'une personne estime que les mesure prises par un Etat ou par les deux Etats entraînent ou entraîneront pour elle une imposition non conforme aux dispositions de la présente Convention, elle peut, indépendamment des recours prévus par le droit interne de ces Etats, soumettre son cas à l'autorité compétente de I'Etat dont elle est un résident ou, si son cas reléve du paragraphe 1 de I'article 25, à celle de I'Etat dont elle posséde la nationalité. Le cas doit être soumis dans les trois ans qui suivent la premiére notification de la mesure qui entraîne une imposition non conforme aux dispositions de la Convention.

2. L'autorité compétente s'efforce, si la réclamation lui parait fondée et si elle n'est pas elle-même en mesure d'y apporter une solution satisfaisante, de résoudre le cas par voie d'accord amiable avec l'autorité compétente de l'autre Etat, en vue d'éviter une imposition non conforme à la Convention. L'accord est appliqué quelques soient les délais prévus par le droit interne des Etats.

3. Les autorités compétentes des Etats s'efforcent, par voie d'accord amiable, de résoudre les difficultés auxquelles peut donner lieu l'application de la Convention.

Les autorités compétentes des Etats peuvent notamment se concerter pour s'efforcer de parvenir à un accord:

(a) pour que les bénéfices imputables à un établissement stable situé dans un Etat d'une entreprise de l'autre Etat soient imputés d'une maniére identique dans les deux Etats;

(b) pour que les revenus revenant à un résident d'un Etat et à une personne associée visée à l'article 9, qui est un résident de l'autre Etat, soient attribués d'une maniére identique.

Elles peuvent aussi se concerter en vue d'éliminer la double imposition dans les cas non prévus par la Convention.

4. Les autorités compétentes des Etats peuvent communiquer directement entre elles en vue de parvenir à un accord comme il est indiqué aux paragraphes précédents. Si des échanges de vues oraux semblent devoir faciliter cet accord, ces échanges de vues peuvent avoir lieu au sein d'une commission composée de représentants des autorités compétentes des Etats.

5. Les autorités compétentes des Etats réglent d'un commun accord les modalités d'application de la Convention, et notamment les formalités que devront accomplir les résidents d'un Etat pour obtenir dans l'autre Etat les réductions ou les exonérations d'impôt prévues par la Convention.

ARTICLE 27 – ECHANGE DE RENSEIGNEMENTS

1. Les autorités compétentes des Etats échangent les renseignements nécessaires pour appliquer les dispositions de la présente Convention, ou celles de la législation interne des Etats relative aux impôts visés par la Convention dans la mesure où l'imposition qu'elle prévoit n'est pas contraire à la Convention. L'échange de renseignements n'est pas restreint par l'article 1. Les renseignements reçus par un Etat sont tenus secrets de la même maniére que les renseignements obtenus en application de la législation interne de cet Etat et ne sont communiqués qu'aux personnes ou autorités (y compris les tribunaux et organes administratifs) concernées par l'établissement ou le recouvrement des impôts visés par la Convention, par les procédures ou poursuites concernant ces impôts, ou par les décisions sur les recours relatifs à ces impôts. Ces personnes ou autorités n'utilisent ces renseignements qu'à ces fins. Elle peuvent faire état de ces renseignements au cours d'audiences publiques de tribunaux ou dans des jugements.

2. Les dispositions du paragraphe 1 ne peuvent en aucun cas être interprétées comme imposant à un Etat l'obligation:

(a) de prendre des mesures administratives dérogeant à sa législation et à sa pratique administrative ou à celles de l'autre Etat;

(b) de fournir des renseignements qui ne pourraient être obtenus sur la base de sa législation ou dans le cadre de sa pratique administrative normale ou de celles de l'autre Etat;

(c) de fournir des renseignements qui révéleraient un secret commercial, industriel professionnel ou un procédé commercial ou des renseignements dont la communication serait contraire à l'ordre public.

ARTICLE 28 – FONCTIONNAIRES DIPLOMATIQUES ET CONSULAIRES

1. Les dispositions de la présente Convention ne portent pas atteinte aux priviléges fiscaux dont bénéficient les membres des missions diplomatiques et leurs domestiques privés, les membres des postes consulaires, ainsi que les membres des délégations permanentes auprés d'organisations internationales en vertu soit des régles générales du droit des gens soit de dispositions d'accords particuliers.

2. Nonobstant les dispositions de l'article 4, toute personne physique, qui est membre d'une mission diplomatique, d'un poste consulaire ou d'une délégation permanente d'un Etat, qui est situé dans l'autre Etat ou dans un Etat tiers, est réputée, aux fins de la Convention, être résident de l'Etat accréditant, à condition:

(a) que, conformément au droit international, elle ne soit pas imposable dans l'Etat accréditaire pour les revenus de sources extérieures à cet Etat ou pour la fortune située en dehors de cet Etat, et

(b) qu'elle soit soumise dans l'Etat accréditant aux mêmes obligations, en matiére d'impôt sur I'ensemble de son revenu, ou de sa fortune, mondial que les résidents de cet Etat.

3. La Convention ne s'applique pas aux organisations internationales, à leurs organes ou à leurs fonctionnaires, ni aux personnes qui, membres d'une mission diplomatique, d'un poste consulaire ou d'une délégation permanente d'un Etat tiers, sont présentes dans un Etat et ne sont pas considérées comme des résidents de l'un ou l'autre Etat au regard des impôts sur le revenu et sur la fortune.

ARTICLE 29 – CHAMP D'APPLICATION TERRITORIAL

1. La présente Convention s'applique:

(a) en ce qui concerne I'lle Maurice à toutes les îles, les eaux territoriales et le plateau continental qui, en conformité avec le droit international et les lois de I'lle Maurice sont soumis à la juridiction de l'Etat mauricien;

(b) en ce qui concerne la France, aux départements européens et d'outremer de la République française et aux zones situées hors des eaux territoriales adjacentes à ces départements sur lesquelles, en conformité avec le droit international, la France peut exercer les droits relatifs au lit de la mer, au sous-sol marin et à leurs ressources naturelles.

2. La Convention peut être étendue, telle quelle ou avec les modifications nécessaires, aux territoires d'outre-mer de la République française, qui perçoivent des impôts de caractéres analogue à ceux auxquels s'applique la Convention. Une telle extension prend effet à partir de la date, avec les modification et dans les conditions, y compris les conditions relatives à la cessation d'application, qui sont fixées d'un commun accord entre les Etats par échange de notes diplomatiques ou selon toute autre procédure conforme à leurs dispositions constitutionnelles.

3. A moins que les deux Etats n'en soient convenus autrement, lorsque la Convention sera dénoncée par l'un d'eux en vertu de l'article 31, elle cessera de s'appliquer, dans les conditions prévues à cet article à tout territoire auquel elle a été étendue conformément au présent article.

ARTICLE 30 – ENTRÉE EN VIGUEUR

1. Chacun des Etats notifiera à l'autre l'accomplissement des procédures requises par sa législation pour la mise en vigueur de la présente Convention. Celle-ci entrera en vigueur un mois aprés la date de réception de la derniére de ces notifications.

2. Ses dispositions s'appliqueront pour la premiére fois:

(a) en ce qui concerne les impôts perçus par voie de retenue à la source, aux sommes mises en paiement à compter de la date d'entrée en vigueur de la Convention;

(b) en ce qui concerne les autres impôts sur le revenu;

pour l'impôt mauricien, aux revenus réalisés pendant l'année fiscale au cours de laquelle la Convention est entrée en vigueur ou afférents à l'exercice comptable clos au cours de cette année;

pour l'impôt français, aux revenus réalisés pendant l'année civile au cours de laquelle la Convention est entrée en vigueur ou afférents à l'exercice comptable clos au cours de cette année.

ARTICLE 31 – DÉNONCIATION

1. La présente Convention demeurera en vigueur sans limitation de durée. Toutefois, à partir de 1982, chacun des Etats pourra, moyennant un préavis minimum de 6 mois notifié par la voie diplomatique, la dénoncer pour la fin d'une année civile.

2. Dans ce cas, ses dispositions s'appliqueront pour la derniére fois:

(a) en ce qui concerne les impôts perçus par voie de retenue à la source, aux sommes mises en paiement au plus tard le 31 décembre de l'année civile pour la fin de laquelle la dénonciation aura été notifiée;

(b) en ce qui concerne les autres impôts sur le revenus;

pour l'impôt mauricien, aux revenus réalisés pendant l'année fiscale au cours de laquelle la dénonciation prendra effet ou afférents à l'exercice comptable clos au cours de cette année;

pour l'impôt français, aux revenus réalisés pendant l'année civile pour la fin de laquelle la dénonciation aura été notifiée ou afférents à l'exercice comptable clos au cours de cette année.

En foi de quoi, les sousignés ont signé la présente Convention.

Fait à Port Louis le 11 décembre 1980 en double exemplaire, I'un en langue anglaise et l'autre en langue française, les deux textes faisant également foi.

Pour le Gouvernement de

Pour le Gouvernement de la

l'Ile Maurice
(sgn.) V. RINGADOO

République française
(sgn.) J. J. MANO

PROTOCOLE

Au moment de la signature de la Convention entre le Gouvernement de l'Ile Maurice et le Gouvernement de la République Française tendant à éviter les doubles impositions en matiére d'impôts sur le revenu et sur la fortune, les soussignés sont convenus des dispositions suivantes:

ARTICLE 1

1. En ce qui concerne le paragraphe (1)(f) de l'article 3, l'expression "trafic international" désigne également tout transport effectué par conteneur lorsque ce transport n'est que le complément d'un transport effectué en trafic international.

2. En ce qui concerne l'article 6, les revenus d'actions, de parts ou de participations dans une société ou une personne morale possédant des biens immobiliers situés dans un Etat, qui, selon la législation de cet Etat, sont soumis au même régime fiscal que les revenus de biens immobiliers, sont imposables dans cet Etat.

3. (a) En ce qui concerne les paragraphes 1 et 2 de l'article 7, quand une entreprise d'un Etat vend des marchandises ou exerce une activité dans l'autre Etat par l'intermédiaire d'un établissement stable qui y est situé, les bénéfices de cet établissement stable ne sont pas calculés sur la base du montant total reçu par l'entreprise mais sont calculés sur la seule base de la rémunération imputable à l'activité réelle de l'établissement stable pour ces ventes ou cette activité.

Dans les cas de contrats d'étude, de fourniture, d'installation ou de construction d'équipements ou d'établissements industriels, commerciaux ou scientifiques, ou d'ouvrages publics, lorsque l'entreprise a un établissement stable, les bénéfices de cet établissement stable ne sont pas déterminés sur la base du montant total du contrat, mais sont determinés seulement sur la base de la part du contrat qui est effectivement executée par cet établissement stable dans l'Etat où cet établissement stable est situé. Les bénéfices afférents à la part du contrat qui est exécutée par le siége de l'entreprise ne sont imposables que dans l'Etat dont cette entreprise est un résident.

(b) En ce qui concerne le paragraphe 1 de l'article 7 les rémunérations de toute nature payées pour l'usage ou la concession de l'usage d'un équipement industriel, commercial ou scientifique, sont considérées comme des bénéfices d'une entreprise auxquels les dispositions de l'article 7 s'appliquent. De même, les rémunérations payées pour des services techniques, y compris des analyses ou des études de nature scientifique, géologique ou technique, pour des travaux d'ingénierie y compris les plans y afférents, ou pour des services de consultation ou de surveillance, sont considérées comme des bénéfices d'une entreprise auxquels les dispositions de l'article 7 s'appliquent.

4. Nonobstant les dispositions du paragraphe 8 de l'article 10, lorsqu'une société qui est un résident de l'Ile Maurice exerce en France une activité industrielle ou commerciale par l'intermédiaire d'un établissement stable qui y est situé, les bénéfices de cet établissement stable peuvent, aprés avoir supporté l'impôt sur les sociétés, être assujettis, conformément à législation française, à un impôt dont le taux ne peut excéder quinze pour cent.

5. En ce qui concerne l'article 11, les intérêts provenant de l'lle Maurice et payés à un résident de France ne sont imposables qu'en France s'ils sont payés en raison d'un prêt fait ou avalisé, ou d'un crédit consenti ou avalisé par la Banque Française pour le Commerce extérieur.

6. (a) En ce qui concerne I'article 13, les gains provenant de l'aliénation d'actions, de parts ou de participations dans une société ou une personne morale possédant des biens immobiliers situés dans un Etat, qui, selon la législation de cet Etat, sont soumis au même régime fiscal que les gains tirés de I'aliénation de biens immobiliers, sont imposables dans cet Etat.

(b) Nonobstant les dispositions du paragraphe 4 de l'article 13, les gains provenant de l'aliénation d'actions ou de parts faisant partie d'une participation substantielle dans le capital d'une société qui est un résident d'un Etat sont imposables dans cet Etat, selon la législation de cet Etat. On considére qu'il existe une participation substantielle lorsque le cédant, seul ou avec des personnes associées ou apparentées, dispose directement ou indirectement d'actions ou de parts dont l'ensemble ouvre droit à 25 pour cent ou plus des bénéfices de la société.

7. En ce qui concerne I'article 23, les éléments de la fortune constitués par des actions, des parts ou des participations dans une société ou une personne morale possédant des biens immobiliers situés dans un Etat, qui selon la législation de cet Etat sont soumis au même régime fiscal que les biens immobiliers, sont imposables dans cet Etat.

8. En ce qui concerne I'article 25:

(a) rien dans le paragraphe 1 ne peut être interprété comme empêchant la France de n'accorder qu'aux personnes de nationalité française le bénéfice de l'exonération des gains provenant de l'aliénation des immeubles ou parties d'immeubles constituant la résidence en France de Français qui ne sont pas domiciliés en France, telle qu'elle est prévue à l'article 6-II de la loi no 76-660 du 19 juillet 1976; et

(b) rien dans le paragraphe 4 ne peut être interprété comme empêchant la France d'appliquer les dispositions de l'article 212 du Code générale des Impôts en ce qui concerne les intérêts payés par une société française à une société-mére étrangére.

ARTICLE 2

Le présent protocole demeurera en vigueur aussi longtemps que la Convention signée ce jour entre le Gouvernment de l'lle Maurice et le Gouvernement de la République française tendant à éviter les doubles impositions en matiére d'impôts sur le revenu et sur la fortune demeurera en vigueur.

Fait à Port Louis le 11 Décembre 1980 en double exemplaire, l'un en langue anglaise et l'autre en langue française, les deux textes faisant également foi.

Pour le Gouvernement de

Pour le Gouvernement de la

l'lle Maurice
V. RINGADOO

République Française
J. J. MANO

–––––––––––––––

AVENANT A LA CONVENTION ENTRE LE GOUVERNEMENT DE L'ILE MAURICE ET LE GOUVERNEMENT DE LA REPUBLIQUE FRANÇAISE TENDANT A EVITER LES DOUBLES IMPOSITIONS EN MATIERE D'IMPOTS IMPOTS SUR LE REVENU ET SUR LA FORTUNE

Le Gouvernement de la République de l'Ile Maurice et le Gouvernement de la République française,

Désireux de modifier la Convention entre le Gouvernement de l'île Maurice et le Gouvernement de la République française tendant à éviter les doubles impositions en matiére d'impôts sur le revenu et sur la fortune, signée à Port Louis le 11 décembre 1980 (ci-aprés dénommée «la Convention»),

Sont convenus des dispositions suivantes :

ARTICLE 1ER

L'article 27 de la Convention est supprimé et remplacé par le suivant:

ARTICLE 27

Echange de renseignements

1. Les autorités compétentes des Etats contractants échangent les renseignements vraisemblablement pertinents pour appliquer les dispositions de la présente Convention ou pour l'administration ou l'application de la législation interne relative aux impôts de toute nature ou dénomination perçus pour le compte des Etats contractants, ou de leurs collectivités locales, dans la mesure où l'imposition qu'elle prévoit n'est pas contraire à la Convention. L'échange de renseignements n'est pas restreint par les articles 1 et 2.

2. Les renseignements reçus en vertu du paragraphe 1 par un Etat contractant sont tenus secrets de la même maniére que les renseignements obtenus en application de la législation interne de cet Etat et ne sont communiqués qu'aux personnes ou autorités (y compris les tribunaux et organes administratifs) concernées par l'établissement ou le recouvrement des impôts mentionnés au paragraphe 1, par les procédures ou poursuites concernant ces impôts, par les décisions sur les recours relatifs à ces impôts, ou par le contrôle de ce qui précéde. Ces personnes ou autorités n'utilisent ces renseignements qu'à ces fins. Elles peuvent révéler ces renseignements au cours d'audiences publiques de tribunaux ou dans des jugements.

3. Chaque Etat contractant doit prendre les mesures nécessaires afin de garantir la disponibilité des renseignements et la capacité de son administration fiscales à accéder à ces renseignements et à les transmettre à son homologue.

Les dispositions des paragraphes 1 et 2 ne peuvent pas être interprétées comme imposant à un Etat contractant l'obligation:

(a) De prendre des mesures administratives dérogeant à sa législation et à sa pratique administrative ou à celles de l'autre Etat contractant;

(b) De fournir des renseignements qui ne pourraient être obtenus sur la base de sa législation ou dans le cadre de sa pratique administrative normale ou de celles de l'autre Etat contractant;

(c) De fournir des renseignements qui révéleraient un secret commercial, industriel, professionnel ou un procédé commercial ou des renseignements dont la communication serait contraire à l'ordre public.

4. Si des renseignements sont demandés par un Etat contractant conformément au présent article, l'autre Etat contractant utilise les pouvoirs dont il dispose pour obtenir les renseignements demandés, même s'il n'en a pas besoin à ses propres fins fiscales. L'obligation qui figure dans la phrase précédente est soumise aux limitations prévues au paragraphe 3 sauf si ces limitations sont susceptibles d'empêcher un Etat contractant de communiquer des renseignements uniquement parce que ceux-ci ne présentent pas d'intérêt pour lui dans le cadre national.

5. En aucun cas les dispositions du paragraphe 3 ne peuvent être interprétées comme permettant à un Etat contractant de refuser de communiquer des renseignements uniquement parce que ceux-ci sont détenus par une banque, un autre établissement financier, un mandataire ou une personne agissant en tant qu'agent ou fiduciaire ou parce que ces renseignements se rattachent aux droits de propriété d'une personne.

ARTICLE 2

1. Chacun des Etats contractants notifie à l'autre l'accomplissement des procédures requises, en ce qui le concerne, pour la mise en vigueur du présent Avenant. Le présent Avenant entre en vigueur le premier jour du mois suivant la date de réception de la derniére de ces notifications.

2. Les dispositions du présent Avenant s'appliquent à toute année civile ou période comptable commençant à compter du ler janvier de l'année civile qui suit immédiatement la date de signature du présent Avenant.

3. Le présent Avenant demeurera en vigueur aussi longtemps que la Convention demeurera en vigueur.

EN FOI DE QUOI, les soussignés, dûment autorisés à cet effet, ont signé le présent Avenant.

FAIT à Port Louis, le 23 juin 2011, en double exemplaire, en langues anglaise et française, les deux textes faisant également foi.

Hon. Pravind Kumar JUGNAUTH

S.E. Jean-François DOBELLE

Vice-Premier Ministre,

Ambassadeur

Ministre des Finances

POUR LE GOUVERNEMENT

et du Développement Economique

DE LA REPUBLIQUE

POUR LE GOUVERNEMENT

FRANÇAISE

DE LA REPUBLIQUE

 

DE L'lLE MAURICE

 

–––––––––––––––

Double Taxation Avoidance Agreement (Government of the Kingdom of Swaziland)
Regulations 1994

[GN 150 of 1994 '” 19 August 1994] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Government of the Kingdom of Swaziland) Regulations 1994.

2. In these regulations'”

"Act" means the Income Tax Act;

"Agreement" means the agreement entered by the Government of Mauritius with the Government of the Kingdom of Swaziland pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 8 November 1994.]

_______________

SCHEDULE

[Regulation 2]

AGREEMENT

between the

Government of the Republic of Mauritius

and the

Government of the Kingdom of Swaziland

for the

Avoidance of Double Taxation

and the

Prevention of Fiscal Evasion with Respect

to

Taxes on Income

The Government of the Republic of Mauritius and the Government of The Kingdom of Swaziland desiring to promote and strengthen the economic relations between the two countries,

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income imposed on behalf of a Contracting State irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income all taxes imposed on total income or on elements of income.

3. The existing taxes to which this Agreement shall apply are in particular:

(a) in Mauritius, the income tax,

(hereinafter referred to as "Mauritius tax");

(b) in Swaziland:

(i) the normal tax;

(ii) the non-residential shareholders tax;

(iii) the non-residents' tax on interest; and

(iv) the non-residents' tax on entertainments and sports,

(hereinafter referred to as "Swaziland tax").

4. This Agreement shall also apply to any other taxes of a substantially similar character which are imposed by either Contracting State after the date of signature of this Agreement in addition to, or in place of, the existing taxes.

5. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws, and if it seems desirable to amend any Article of this Agreement, without affecting the general principles thereof, the necessary amendments may be made by mutual consent by means of an Exchange of Notes.

ARTICLE 3 – GENERAL DEFINITIONS

1. In this Agreement, unless the context otherwise requires:

(a) the term "Mauritius" means the Republic of Mauritius and includes:

(i) all the territories and islands which, in accordance with the laws of Mauritius, constitute the State of Mauritius;

(ii) the territorial sea of Mauritius; and

(iii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius, as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Swaziland" means the Kingdom of Swaziland;

(c) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Swaziland as the context requires;

(d) the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax purposes;

(e) the term "competent authority" means:

(i) in Mauritius, the Commissioner of Income Tax or his authorised representative; and

(ii) in Swaziland, the Commissioner of Taxes or his authorised representative;

(f) 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;

(g) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(h) the term "national" means any individual having the citizenship of a Contracting State and any legal person, partnership, association or other entity deriving its status as such from the laws in force in a Contracting State;

(i) the term "person" includes an individual, a company, a trust and any other body of persons which is treated as an entity for tax purposes; and

(j) the term "tax"; means Mauritius tax or Swaziland tax as the context requires.

2. In the application of the provisions of this Agreement by a Contracting State, any term not otherwise defined shall, unless the context otherwise requires, have the meaning which it has under the laws of that State relating to the taxes which are the subject of this Agreement.

ARTICLE 4 – RESIDENT

1. For the purposes of this Agreement, the term "resident of 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.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(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 home 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);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he does not have 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;

(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 of which he is a national;

(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.

3. Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of the enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage faculties for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and

(h) an installation or structure used for the exploration of natural resources.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or a construction, installation or assembly project, or supervisory activities in connection therewith only if the site, project or activity lasts more than six months;

(b) the furnishing of services including consultancy services by an enterprise of a Contracting State through employees or other personnel engaged in the other Contracting State, provided that such activities continue for the same or a connected project for a period or periods aggregating to more than 6 months within any twelve month period.

4. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(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;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; and

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, a person acting in a Contracting State on behalf of an enterprise of the other Contracting State (other than an agent of an independent status to whom paragraph 6 applies) notwithstanding that he has no fixed place of business in the first-mentioned State shall be deemed to be a permanent establishment in that State if:

(a) he has, and habitually exercises, a general authority in the first-mentioned State to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or

(b) he maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders on behalf of the enterprise.

6. 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, where such persons are acting in the ordinary course of their business.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property, including income from agriculture or forestry, is taxable in the Contracting State in which such property is situated.

2. 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 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 shall apply to income derived from the direct use, letting or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 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.

ARTICLE 7 – BUSINESS PROFITS

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. Subject to the provisions of paragraph 3, 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 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 executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise, no account shall be taken, in determining the profits of a permanent establishment, of amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

4. In so far 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, nothing in paragraph 2 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.

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 of income which are dealt with separately in the other Article of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits of an enterprise from the operation or rental of ships or aircraft in international traffic and the rental of containers and related equipment which is incidental to the operation of ships or 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. If the place of effective management of a shipping enterprise is aboard a ship or boat, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship or boat is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship or boat is a resident.

3. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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.

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 Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

ARTICLE 10 – DIVIDENDS

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.

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 to the beneficial owner shall not exceed 7.5 per cent of the gross amount of dividends.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

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 Contracting State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, no tax may be imposed on the beneficial owner in that other State on the dividends paid by the company except in so far as such dividends are paid to a resident of that other State or in so far 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 undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, subject to the provisions of paragraph 3, such interest may also be taxed in the Contracting State in which it arises and according to the law of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 5 per cent of the gross amount of the interest.

3. Interest arising in a Contracting State shall be exempt from tax in that State if it is derived and beneficially owned by:

(a) the Government or a local authority of the other Contracting State; or

(b) any institution, body or board which is wholly owned by the Government or a local authority of the other State.

4. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purposes of this Article. The term "interest" shall not include any item which is treated as a dividend under the provisions of Article 10 of this Agreement.

5. The provisions of paragraphs 1, 2 and 3 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 a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a 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.

7. 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 a 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 Agreement.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 beneficial, owner is a resident of the other Contracting State, the tax so charged shall not exceed 7.5 per cent of the gross amount of the royalties.

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 and films, tapes or discs for radio or television broadcasting), any patent, trade mark, design or model, computer programme, plan, secret formula or process, or for the use of, or the right to use, industrial, commercial or scientific equipment or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or 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 a Contracting State a permanent establishment or a fixed base with which the right or property in respect of which the royalties are paid is effectively connected, 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.

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 royalties paid, 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 a 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 Agreement.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property, referred to in Article 6, and situated in the other Contracting State may be taxed in that other State.

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 together with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. Gains from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that mentioned in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16,18,19 and 20 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 there from may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned;

(b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16 – DIRECTORS' FEES

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.

ARTICLE 17 – ENTERTAINERS AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, income derived by entertainers such as theatre, motion picture, radio or television artistes, and musicians, or by sportsmen, from their personal activities as such, may be taxed in the Contracting State in which these activities are exercised.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived from activities, referred to in paragraph 1, performed under a cultural agreement or arrangement between the Contracting States shall be exempt from tax in the Contracting State in which the activities are exercised if the visit to that State is wholly or substantially supported by funds of either Contracting State, a local authority or public institution thereof.

ARTICLE 18 – PENSIONS AND ANNUITIES

1. Any pension (other than a pension of the kind referred to in paragraph 2 of Article 19) and any annuity, derived from sources within a Contracting State by an individual who is a resident of the other Contracting State and is subject to tax on the whole or portion thereof in the other State, shall be exempt from tax in the first-mentioned State to the extent that it is subjected to tax in the other State.

2. The term "annuity" as used in this Article means a stated sum payable periodically at stated times, during life or during a specified or ascertainable period of time, under an obligation to make the payments in return for adequate and full consideration in money or money's worth.

3. Notwithstanding the provisions of paragraph 1, pensions paid and other payments made under a public scheme which is part of the social security system of a Contracting State or a local authority thereof shall be taxable only in that State.

ARTICLE 19 – GOVERNMENT SERVICE

1. (a) Remuneration, other than a pension, paid by, or out of funds created by, one of the Contracting States or a local authority or statutory body thereof to an individual in respect of services rendered to that State, authority or body in the discharge of governmental functions shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or local authority or statutory body thereof to an individual in respect of services rendered to that State or authority or body in the discharge of governmental functions shall be taxable only in that State.

(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident and a national of that other State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting state, or local authority or statutory body thereof.

ARTICLE 20 – PROFESSORS AND TEACHERS

1. Notwithstanding the provisions of Article 15, a professor or teacher who makes a temporary visit to one of the Contracting States for a period not exceeding two years for the purpose of teaching or carrying out research at a university, college, school or other educational institution in that State and who is, or immediately before such visit was, a resident of the other Contracting State shall, in respect of remuneration for such teaching or research, be exempt from tax in the first-mentioned State, where such remuneration is derived by him from outside that State and such remuneration is subject to tax in the other State.

2. The provisions of this Article shall not apply to income from research if such research is undertaken not in the public interest but wholly or mainly for the private benefit of a specific person or persons.

ARTICLE 21 – STUDENTS AND BUSINESS APPRENTICES

A student or business apprentice who is present in a Contracting State solely for the purpose of his education or training and who is, or immediately before being so present was, a resident of the other Contracting State, shall be exempt from tax in the first-mentioned State on payments received from outside that first-mentioned State for the purposes of his maintenance, education or training.

ARTICLE 22 – OTHER INCOME

1. Subject to the provisions of paragraph 2, items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles in respect of which he is subject to tax in that State, shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income 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 a right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 or Article 14, as the case may be, shall apply.

ARTICLE 23 – METHOD FOR ELIMINATION OF DOUBLE TAXATION

1. The laws in force in either of the Contracting States shall continue to govern the taxation of income in the respective States except where provisions to the contrary are made in this Agreement. Where income is subject to tax in both States, relief from double taxation shall be given in accordance with the next paragraphs of this Article.

2. (a) In the case of Mauritius, where a resident of Mauritius derives income from Swaziland, the amount of tax on that income payable in Swaziland in accordance with the provisions of this Agreement may be credited against the Mauritius tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Mauritius tax on that income computed in accordance with the taxation laws and regulations of Mauritius;

(b) where the income derived from Swaziland is a dividend paid by a company which is a resident of Swaziland to a company which is a resident of Mauritius, the credit shall take into account the tax paid in Swaziland by the company paying the dividend in respect of the profits out of which the dividend is paid.

3. (a) In the case of Swaziland, where a resident of Swaziland derives income from Mauritius, the amount of tax on that income payable in Mauritius in accordance with the provisions of this Agreement may be credited against the Swaziland tax imposed on that resident. The amount of credit, however, shall not exceed the amount of the Swaziland tax on that income computed in accordance with the taxation laws and regulations of Swaziland;

(b) where the income derived from Mauritius, is a dividend paid by a company which is a resident of Mauritius to a company which is a resident of Swaziland, the credit shall take into account the tax paid in Mauritius by the company paying the dividend in respect of the profits out of which the dividend is paid.

4. The tax paid in a Contracting State mentioned in paragraphs 2 and 3, shall be deemed to include the tax which would have been payable but for the legal provisions concerning tax reduction, exemption or other, tax incentives of the Contracting States, for the promotion of economic development.

ARTICLE 24 – NON-DISCRIMINATION

1. The 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 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.

2. 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.

3. 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 be subjected in the first-mentioned State to any taxation or any requirement 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.

4. Nothing in this Article shall 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 to its own residents.

5. In this Article the term "taxation" means taxes which are the subject of this Agreement.

ARTICLE 25 – MUTUAL AGREEMENT PROCEDURE

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 Agreement, 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 from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

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 which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.

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 States.

ARTICLE 26 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement in so far as the taxation thereunder is not contrary to the Agreement, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as secret in the same manner as information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including courts or 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 this Agreement. 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. The competent authorities shall, through consultation, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of information shall be made, including, where appropriate, exchanges of information regarding tax avoidance.

2. In no case shall the provisions of paragraph 1 be so construed as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State;

(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;

(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 (ordre public).

ARTICLE 27 – DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements.

ARTICLE 28 – ENTRY INTO FORCE

1. Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications and shall thereupon have effect:

(a) in both Contracting States in respect of taxes on income for any year of assessment beginning on or after 1 July in the calendar year next following that in which the Agreement enters into force;

(b) in Swaziland in respect of:

(i) non-residents shareholders' tax on dividends;

(ii) non-residents' tax on interest; and

(iii) non-residents' tax on entertainments and sports, payable on or after 1 July following the date on which the agreement enters into force.

ARTICLE 29 – TERMINATION

1. This Agreement shall remain in force indefinitely but either of the Contracting States may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination not later than 30 June of any calendar year starting five years after the year in which the Agreement entered into force.

2. In such event the Agreement shall cease to have effect:

(a) in both Contracting States, as regards taxes on income for any year of assessment beginning on or after the 1 July in the calendar year next following that in which the notice is given; and

(b) in Swaziland in respect of:

(i) non-residents shareholders' tax on dividends;

(ii) non-residents' tax on interest; and

(iii) non-residents' tax on entertainments and sports,

payable on or after 1 July in the calendar year next following that in which the notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Agreement.

DONE at Port Louis in duplicate, this twenty ninth day of June of the year One Thousand Nine Hundred and Ninety Four.

.......................................................

...................................................
.Hon. Ramakrishna Sithanen
Minister of Finance
Hon.J.S. Shabangu
Minister of Finance

For the Government of the
Republic of Mauritius
For the Government of the
Kingdom of Swaziland

_______________

Double Taxation Avoidance Agreement (Grand Duchy
of Luxembourg) Regulations 1995

[GN 30 of 1995 – 18 March 1995] [Section 76]

1. These regulations may be cited as the Double Taxation Avoidance Agreement (Grand Duchy of Luxembourg) Regulations 1995.

2. In these regulations

"Act" means the Income Tax Act;

"Agreement" means the Convention entered by the Government of Mauritius with the Government of the Grand Duchy of Luxembourg pursuant to section 76 of the Act and set out in the Schedule.

3.

[Agreement c.i.o. 12 September 1996.]

_______________

SCHEDULE

[Regulation 2]

CONVENTION

between

The Government of the Republic of Mauritius

and the

Grand Duchy of Luxembourg

for the

Avoidance of Double Taxation

and the

Prevention of Fiscal Evasion with Respect

to

Taxes on Income and on Capital

The Government of The Republic of Mauritius and the Government of The Grand Duchy of Luxembourg.

DESIRING to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital;

Have agreed as follows:

ARTICLE 1 – PERSONAL SCOPE

This Convention shall apply to persons who are residents of one or both of the Contracting States.

ARTICLE 2 – TAXES COVERED

1. The existing taxes to which this Convention shall apply are:

(a) in Mauritius:

the income tax;

(hereafter referred to as "Mauritius tax")

(b) in the Grand Duchy of Luxembourg:

(i) the income tax on individuals (l'impôt sur le revenu des personnes physiques);

(ii) the corporation tax (l'impôt sur le revenu des collectivités);

(iii) the tax on fees of directors of companies (l'impôt spécial sur les tantiémes);

(iv) the capital tax (l'impôt sur la fortune);

(v) the communal trade tax (l'impôt commercial communal);

(hereafter referred to as "Luxembourg tax").

2. This Convention shall also apply to any identical or substantially similar taxes which are imposed by either Contracting State after the date of signature of this Convention in addition to, or in place of, the existing taxes.

3. The competent authorities of the Contracting States shall notify each other of substantial changes which have been made in their respective taxation laws.

ARTICLE 3 – GENERAL DEFINITIONS

1. For the purposes of this Convention, unless the context otherwise requires:

(a) the term "Mauritius" means all the territories, including all the islands, which, in accordance with the laws of Mauritius, constitute the State of Mauritius and includes:

(i) the territorial sea of Mauritius; and

(ii) any area outside the territorial sea of Mauritius which in accordance with international law has been or may hereafter be designated, under the laws of Mauritius as an area, including the Continental Shelf, within which the rights of Mauritius with respect to the sea, the sea-bed and sub-soil and their natural resources may be exercised;

(b) the term "Luxembourg" means the territory of the Grand Duchy of Luxembourg;

(c) the term "national" means:

(i) any individual possessing the nationality or citizenship of a Contracting State;

(ii) any legal person, partnership, association and any other entity deriving its status as such from the laws in force in a Contracting State;

(d) the terms "a Contracting State" and "the other Contracting State" mean Mauritius or Luxembourg as the context requires;

(e) the term "person" includes an individual, a trust, a company and any other body of persons;

(f) the term "company" means any body corporate or any entity which is treated as a company or body corporate for tax purposes;

(g) 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;

(h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

(i) the term "competent authority" means, in the case of Mauritius, the Minister of Finance or his authorized representative, and in the case of Luxembourg, the Minister of Finance or his authorised representative;

(j) the term "tax" means Mauritius tax or Luxembourg tax as the context requires.

2. As regards the application of the Convention by a Contracting State any term not defined therein 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.

ARTICLE 4 – RESIDENT

1. For the purposes of this Convention, the term "resident of a Contracting State" means, subject to the provisions of paragraphs (2) and (3), 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 sources in that State or capital situated therein. The terms, "resident of Mauritius" and "resident of Luxembourg" shall be construed accordingly.

2. Where by reason of the provisions of paragraph (1) an individual is a resident of both Contracting States, his status shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests);

(b) if the Contracting 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 Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;

(c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

(d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph (1) a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.

ARTICLE 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term "permanent establishment" shall include especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop;

(f) a warehouse, in relation to a person providing storage facilities for others;

(g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;

(h) an installation or structure used for the exploration of natural resources;

(i) a farm or plantation.

3. A building site or construction or assembly project, or supervisory activities in connection therewith, constitutes a permanent establishment only if the site, project or activity lasts more than six months.

4. Notwithstanding the preceding provisions, the term "permanent establishment" shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e), subject to the overall activity of the fixed place of business resulting from this combination being of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs (1) and (2), where a person – other than an agent of an independent status to whom paragraph (6) applies – is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for 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.

6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, a general commission agent or any other agent of an independent status, where such persons are acting in the ordinary course of their business. An agent shall not be regarded as of an independent status if the agent acts exclusively or almost exclusively for the enterprise.

7. 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 State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

ARTICLE 6 – INCOME FROM IMMOVABLE PROPERTY

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.

2. (a) The term "immovable property" shall, subject to the provisions of sub-paragraph (b), be defined in accordance with the law of the Contracting State in which the property in question is 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) shall apply to income derived from the direct use, letting or use in any other form of immovable property.

4. The provisions of paragraphs (1) and (3) 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.

ARTICLE 7 – BUSINESS PROFITS

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. Subject to the provisions of paragraph (3), 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 at arm's length with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions all expenses of the enterprise which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the permanent establishment. Likewise no account shall be taken, in determining the profits of permanent establishment, of amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices.

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, nothing in paragraph (2) 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.

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 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.

ARTICLE 8 – SHIPPING AND AIR TRANSPORT

1. Profits from the operation of ships or 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. If the place of effective management of a snipping enterprise is aboard a ship then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

3. The provisions of paragraph (1) shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

ARTICLE 9 – ASSOCIATED ENTERPRISES

1. Where:

(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.

2. Where a Contracting State includes, in accordance with the provisions of paragraph (1), in the profits of an enterprise of that Contracting State and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other Contracting State and where the competent authorities of the Contracting States agree, upon consultation, that all or part of the profits so included are profits which would have accrued to the enterprise of the first-mentioned Contracting State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other Contracting State shall make an appropriate adjustment to the amount of the tax charged therein on those agreed profits. In determining such adjustment, due regard shall be had to the other provisions of this Convention.

ARTICLE 10 – DIVIDENDS

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.

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:

(a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company which holds directly at least 10 per cent of the capital of the company paying the dividends;

(b) 10 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' 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 Contracting State of which the company making the distribution is a resident.

4. The provisions of paragraphs (1) and (2) 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, as the case may be, shall apply.

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 dividends 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.

ARTICLE 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the interest.

2. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

3. The provisions of paragraph (1) 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, as the case may be, shall apply.

4. 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.

ARTICLE 12 – ROYALTIES

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the royalties.

2. 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, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

3. The provisions of paragraph (1) shall not apply if the beneficial owner of the royalties, being a resident of a 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 or property in respect of which the royalties are 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.

4. 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 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.

ARTICLE 13 – CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

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 purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other State.

3. Notwithstanding the provisions of paragraph (2), gains from the alienation of ships or aircraft operated in international traffic and movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains from the alienation of any property other than that mentioned in paragraphs (1), (2) and (3) shall be taxable only in the Contracting State of which the alienator is a resident.

ARTICLE 14 – INDEPENDENT PERSONAL SERVICES

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 unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.

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.

ARTICLE 15 – DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21, 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.

2. Notwithstanding the provisions of paragraph (1), 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:

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days within any period of 12 months; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

ARTICLE 16 – DIRECTORS' FEES

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.

ARTICLE 17 – ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, 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.

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, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. The provisions of paragraphs (1) and (2) shall not apply to income derived as aforesaid if the activities of the entertainer or sportsman in the Contracting State are supported wholly or substantially from public funds of the other Contracting State, a political subdivision, local authority or a public body thereof.

ARTICLE 18 – PENSIONS

1. Subject to the provisions of paragraph (2) of Article 19, pensions and other similar remuneration paid in consideration of past employment to a resident of a Contracting State and any annuity paid to such a resident shall be taxable only in that Contracting State.

2. The term "annuity" as used in paragraph (1) means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to effect payment of that stated sum in return for adequate and full consideration.

3. Notwithstanding the provisions of paragraph (1), pensions paid and other payments made under a public scheme which is governed by the social security legislation of a Contracting State or a political subdivision or a local authority thereof shall be taxable only in that State.

ARTICLE 19 – GOVERNMENTAL FUNCTIONS

1. (a) Remuneration, other than a pension, paid by, or out of funds created by, a Contracting State or a political subdivision, a local authority or a public body thereof to an individual in respect of services rendered to that State or subdivision, authority or public body shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that other State and the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. (a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision, a local authority or a public body thereof to an individual in respect of services rendered to that State or subdivision, authority or public body shall be taxable only in that State.

(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident, and a national, of that State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision, a local authority or a public body thereof.

ARTICLE 20 – STUDENTS

An individual who, immediately before visiting a Contracting State, was a resident of the other Contracting State and whose visit to the first-mentioned Contracting State is solely for the purpose of:

(a) studying at a university or other recognized educational institution; or

(b) securing training to qualify him to practice a profession or trade; or

(c) studying or carrying out research as a recipient of a grant, allowance or award from a governmental, religious, charitable, scientific, literary or educational organization, shall be exempt from tax in the first-mentioned State on:

(i) remittance from abroad for the purpose of his maintenance, education, study, research or training;

(ii) the grant, allowance or award; and

(iii) income from personal services rendered in that State provided the income constitutes earnings reasonably necessary for his maintenance and education.

ARTICLE 21 – PROFESSORS AND TEACHERS

1. An individual who is a resident of a Contracting State at the time he becomes temporarily present in the other Contracting State, at the invitation of that other State or of a university, college, school or other recognized educational institution in the other State, for the primary purpose of teaching or engaging in research, or both, at a university, college, school or other recognized educational institution shall be exempt from tax by that other State on his income from personal services for teaching or research at such university, college, school or educational institution, for a period not exceeding two years from the date of his arrival in that other State.

2. This article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.

ARTICLE 22 – INCOME NOT EXPRESSLY MENTIONED

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

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.

ARTICLE 23 – CAPITAL

1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

2. Capital represented by 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 by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

3. Capital represented by ships and aircraft operated in international traffic and by movable property pertaining to the operation of such ships and aircraft shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

ARTICLE 24 – ELIMINATION OF DOUBLE TAXATION

1. Double taxation shall be avoided in accordance with the following paragraphs.

2. In the case of Mauritius:

(a) Subject to the other sub-paragraphs of this paragraph and to the provisions of the laws of Mauritius regarding the allowance as a credit against Mauritius tax of tax payable in a territory outside Mauritius (which shall not affect the general principle hereof), where a resident of Mauritius derives profits, income or gains from sources within Luxembourg and which, under the laws of Luxembourg arid in accordance with this Convention are taxable or may be taxed in Luxembourg, whether directly or by deduction, Mauritius shall allow as a credit against any Mauritius tax computed by reference to the same profits, income or gains the Luxembourg tax paid and computed by reference to those profits, income or gains.

(b) In the case of dividends, the credit referred to in subparagraph (a) shall only take into account such tax in respect thereof as is additional to any tax payable in Luxembourg by the company on the profits out of which the dividends are paid and are ultimately borne by the recipient of the dividends without any reference to any tax so payable.

(c) Where a company which is a resident of Luxembourg pays dividends to a company which is a resident of Mauritius and which holds directly at least 10 per cent of the capital of the company paying the dividends, the credit shall take into account (in addition to any Luxembourg tax for which credit may be allowed under the provisions of sub-paragraphs (a) and (b) of this paragraph) the Luxembourg tax payable by the first-mentioned company in respect of the profits out of which such dividends are paid.

3. In the case of Luxembourg:

(a) Where a resident of Luxembourg derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Mauritius, Luxembourg shall, subject to the provisions of subparagraphs (b) to (d), exempt such income or capital from tax, but may, in order to calculate the amount of tax on the remaining income or capital of the resident, apply the same rates of tax as if the income or capital had not been exempted.

(b) Where a resident of Luxembourg derives income which, in accordance with the provisions of Article 10 may be taxed in Mauritius, Luxembourg shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Mauritius. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Mauritius.

(c) The provisions of sub-paragraph (a) shall not apply to the income attributable to a permanent establishment in Mauritius of a Luxembourg enterprise, which is subjected in Mauritius to tax at a rate equivalent to less than 15 per cent calculated on a basis computed in accordance with the Luxembourg income tax law. In such case, Luxembourg shall allow as a deduction from the tax on the income of that enterprise an amount equal to the tax paid in Mauritius. Such deduction shall not however exceed that part of the tax, as computed before the deduction is given, which is attributable to such income derived from Mauritius.

(d) Where a company which is a resident of Luxembourg derives dividends from Mauritius sources, Luxembourg shall exempt such dividends from tax, provided that the company which is a resident of Luxembourg holds since the beginning of its accounting year directly at least 10 per cent of the capital of the company paying the dividends and that the last mentioned company is subjected in Mauritius to tax at a rate equivalent to at least 15 per cent calculated on a basis computed in accordance with the Luxembourg income tax law. The shares in the Mauritius company are, under the same conditions, exempt from the Luxembourg capital tax.

4. For the purposes of paragraphs (2) and (3) of this Article, profits, income and gains owned by a resident of a Contracting State which is taxable or may be taxed in the other Contracting State in accordance with this Convention shall be deemed to arise from sources in that other Contracting State.

ARTICLE 25 – NON-DISCRIMINATION

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 of more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances 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.

2. 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.

3. 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 be subjected in the first-mentioned Contracting State to any taxation or any requirement 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.

4. Nothing contained in this Article shall be considered as obliging either Contracting State to grant to individuals not resident in that State any of the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident.

5. Except where the provisions of paragraph (1) of Article 9, paragraph (4) of Article 11, or paragraph (4) 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 purpose 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. Similarly, 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 under the same conditions as if they had been contracted to a resident of the first-mentioned State.

6. In this Article the term "taxation" means taxes of every kind and description.

ARTICLE 26 – MUTUAL AGREEMENT PROCEDURE

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 the provisions of 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 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

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 a satisfactory 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 which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

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.

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 States.

ARTICLE 27 – EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention, insofar as the taxation thereunder is not contrary to the Convention, in particular for the prevention of fraud or evasion of such taxes. The exchange of information is not restricted by Article 1. Any information so exchanged shall be treated as secret in the manner as information obtained under the domestic laws of that State, but may be disclosed only to persons or authorities (including courts or administrative bodies) concerned with assessment, collection, enforcement or prosecution in respect of, or determination of appeals in relation to, the taxes which are the subject of 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. The competent authorities shall through consultation, develop appropriate conditions, methods and techniques concerning the matters in respect of which such exchanges of information shall be made, including, where appropriate, exchanges of information regarding tax avoidance.

2. In no case shall the provisions of paragraph (1) be construed so as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with the laws and administrative practice