Double Tax Treaty between Luxembourg & Trinidad and Tobago | Damalion

CONVENTION

between the Grand Duchy of Luxembourg and the Republic of Trinidad and Tobago
for the avoidance of double taxation and the prevention of fiscal evasion taxes on income and on capital
and to encourage international trade international trade and investment 

 

The Government of the Grand Duchy of Luxembourg and the Government of the Republic of Trinidad and Tobago,

desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital and to encourage international trade and investment, have agreed upon the following provisions:

Article 1

Persons Covered

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 covered by this Convention are:

 

(a) in the case of Trinidad and Tobago:

(i) the community income tax;

(ii) the income tax;

(iii) the unemployment levy

(iv) the petroleum profits tax;

(hereinafter referred to as “Trinidad and Tobago tax”);

(b) in the case of Luxembourg:

(i) the personal income tax;

(ii) the corporate income tax

(iii) the special tax on directors’ fees

(iv) the wealth tax;

(v) the municipal business tax;

(hereinafter referred to as “Luxembourg tax”).

 

  1. This Convention shall apply also to any identical or substantially similar taxes imposed by a Contracting State or local authority after the date of signature of this Convention in addition to or in place of the taxes or replace the taxes referred to above. The competent authorities of the Contracting States shall notify each other of any substantial changes in their tax laws.

The competent authorities of the Contracting States shall notify each other of any substantial changes in their respective taxation laws.

Article 3

General Definitions

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

(a) the term “Trinidad and Tobago” means the archipelago of the State of Trinidad and Tobago, including the various islands of Trinidad and Tobago, its archipelagic waters, territorial waters, and airspace, together with the adjoining underwater Exclusive Economic Zone” and the continental shelf beyond the territorial waters over which Trinidad and Tobago waters over which Trinidad and Tobago exercises sovereign rights or other rights in accordance with the laws of Trinidad and Tobago’s legislation and international law;

(b) the term “Luxembourg” means the Grand Duchy of Luxembourg

(c) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Trinidad and Tobago or Tobago or Luxembourg, as the context requires;

(d) the term “person” includes an individual, a company and any other body of persons;

(e) “corporation” means any body corporate or any entity which is treated as a 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 State

(g) the term “international traffic” means any transport by a ship or aircraft operated by an enterprise whose place of effective management is in a Contracting State, except where the ship or aircraft is not operated by a resident of the other Contracting State

(h) the term “competent authority” means:

(i) in the case of Trinidad and Tobago, the Minister to whom responsibility for Finance is assigned or his authorized representative

(ii) in the case of Luxembourg, the Minister of Finance or his authorized representative;

(i) “National” means:

(i) any natural person who is a national of a Contracting State;

(ii) any legal person, partnership or association organized under the laws in force in a Contracting State;

 

(j) the terms “paid,” “drawn,” and “received” as used in relation to income include amounts “credited.

 

  1. For the purposes of the application of this Convention at any time by a Contracting State, any term or expression not defined therein shall term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that the laws of that Contracting State relating to the taxes covered by this Convention at that time.

 

Article 4

Resident

  1. For the purposes of this Convention, the term “resident of a Contracting State” means

(a) any person who, under the laws of that State, is liable to tax therein by reason of the person’s domicile, residence, place of management or any other criterion of a similar nature

(b) that Contracting State or any of its local authorities or any other agency or organization of that State or local authority.

  1. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States

(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 he has a permanent home available to him a resident of the State with which his personal and economic relations are closer (“center of vital interests”);

(b) if the State in which such person has his center of vital interests cannot be determined, or if he does not have a permanent home available to him in any of the States, he shall be deemed to be a resident of the State in which he is ordinarily present;

(c) if such person 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 such person 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.

  1. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident of the State in which his place of effective management is located.

 

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.

 

  1. The term “permanent establishment” includes in particular:

(a) a place of management,

(b) a branch office

(c) an office,

(d) a factory,

(e) a workshop,

(f) a warehouse in connection with a person providing storage facilities for others

(g) a store or other sales outlet

(h) a mine, oil or gas well, quarry, or other place of extraction of natural resources

(i) a drilling rig or vessel used for or in connection with the exploration and development of natural resources, and

(j) a construction, assembly or dredging site only if its duration exceeds six (6) months.

  1. Notwithstanding the foregoing provisions of this Article, a “permanent establishment” shall be deemed not to exist if:

(a) use is made of facilities solely for the purpose of storing or displaying goods or merchandise belonging to the enterprise;

(b) goods or merchandise belonging to the enterprise are stored or displayed solely for the purpose of storage or display

(c) goods belonging to the business are stored solely for the purpose of processing by another business;

(d) a fixed place of business is used solely for the purpose of purchasing goods or gathering information for the enterprise;

(e) a fixed place of business is used solely for the purpose of carrying on any other activity of a preparatory or auxiliary character for the enterprise

(f) a fixed place of business is used solely for the purpose of carrying on the activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from such combination remains of a preparatory or auxiliary character.

  1. Notwithstanding the provisions of paragraphs 1 and 2, where a person, other than an agent with independent status to whom paragraph 5 applies, acts 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 that person

(a) having a fixed place of business, or

(b) not having such power, it habitually keeps in the first-mentioned State a stock of goods or merchandise from which it regularly removes goods or merchandise for delivery on behalf of the enterprise.

  1. 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 enjoying independent status, provided that such persons are acting in the ordinary course of their business. However, where the activities of such an agent are carried on exclusively or almost exclusively on behalf of that enterprise, he shall not be considered an agent of independent status within the meaning of this paragraph, but in such cases the provisions of paragraph 4 shall apply.
  2. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is resident of the other Contracting State or carrying on business in that other State (whether through a permanent establishment or otherwise) shall not The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise) shall not of itself constitute a permanent establishment of the other company.

 

Article 6

Income from real 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 shall be deemed to be income from a business carried on in that other State. agricultural or forestry enterprises) situated in the other Contracting State may be taxed in that other State.

 

  1. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property concerned 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 private law respecting landed property, usufruct of immovable property and rights to of real estate and rights to variable or fixed payments for the exploitation of mineral deposits, springs and other natural resources; ships and aircraft are not considered as real ships and aircraft are not considered as real estate.

 

  1. The provisions of paragraph 1 shall apply to income derived from the direct operation, rental or leasing, and any other form of exploitation of real property.

 

  1. The provisions of paragraphs 1 and 3 shall also apply to income from immovable property of an enterprise and to income from immovable property used for the performance of independent professional activities.

 

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 in such a manner, the profits of the enterprise may be taxed in the other State but only to the extent that they are attributable to that permanent establishment.

 

  1. Notwithstanding the provisions of paragraph 1, where an enterprise of a Contracting State has a permanent establishment in the other in the other Contracting State carries on in that other State the same or similar business as that carried on through activities carried on through that permanent establishment, then in order to prevent abuse, the profits from such activities may be such activities shall be attributable to the permanent establishment, unless the enterprise demonstrates that such activities could not reasonably have been undertaken by the permanent establishment.

 

  1. Subject to the provisions of paragraph 4, 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 the profits which it might be expected to make if it were a separate enterprise engaged in the same or similar activities carrying on the same or similar activities under the same or similar conditions and dealing wholly independently with The taxpayer shall be deemed to have paid the tax on the profits which it would have realized if it had constituted a 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.

 

  1. In determining the profits of a permanent establishment, expenses incurred for the purposes of the business of the permanent establishment shall be allowed as a deduction.

of the permanent establishment, including executive and general administrative expenses so incurred, either in the administration so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

 

  1. No profit shall be attributed to a permanent establishment by reason of its having merely purchased 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 each year by the same method, unless the permanent establishment is situated elsewhere.

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

 

Article 8

Maritime and Air Navigation

  1. The profits of an enterprise from the operation or rental of ships or aircraft in international traffic and from the rental of and the leasing 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.

 

  1. If the place of effective management of a shipping enterprise is on board a ship, that place of effective management shall be deemed to be in the Contracting State in which ship, that place of business shall be deemed to be in the Contracting State in which the home port of that ship is situated, or in the absence of a home port, in the Contracting State in which the place of business of that ship is situated. port, in the Contracting State of which the operator of the ship is a resident.

 

  1. The provisions of paragraph 1 shall also apply to profits from participation in a pool, joint business or 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 one of the Contracting States and an enterprise of the other Contracting State, and that, in either case, the two enterprises are, in their commercial or financial relations, bound by conditions agreed upon or imposed which differ from those which would be agreed upon between independent profits which, but for those conditions, would have accrued to one of the undertakings but, because of those conditions, did not by reason of those conditions, may be included in the profits of that enterprise and taxed accordingly.

 

  1. Where a Contracting State includes in the profits of an enterprise of that State, and taxes accordingly profits on which an enterprise of the other Contracting State has been taxed in that other State, and the profits so profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions between the two enterprises had been those which would have been made between independent enterprises, the other Contracting State shall make an appropriate adjustment to the amount of tax imposed therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of the Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.

 

  1. A Contracting State shall not change the profits of an enterprise in the circumstances referred to in this Article after the expiration of the time limits provided in its national laws.

 

Article 10

Dividends

  1. Dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

 

  1. 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 person receiving the dividends is the beneficial owner thereof, the tax so charged shall not exceed

(a) 5 percent of the gross amount of the dividends if the beneficial owner is a company which directly holds at least 10 percent of the capital of the company paying the dividends;

(b) 10 percent 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.

 

  1. The term “dividends” as used in this article means income from shares or other beneficial interests shares, with the exception of debt claims, as well as income from other shares which is subject to the same tax regime as income from shares the laws of the State of which the company making the distribution is a resident, and in the case of Trinidad and Tobago, any item of income which Tobago, any item of income which under the laws of Trinidad and Tobago is treated as a distribution, and in the case of distribution, and in the case of Luxembourg, any share of the profits derived from its investment in a commercial, industrial, mining or handicraft enterprise by the lessor of funds remunerated in proportion to the profit as well as arrears and interest on bonds and other similar securities when a right is granted for these securities to the allocation, in addition to the fixed interest, of an additional interest varying according to the amount of the profit distributed.

 

  1. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting Stateof a Contracting State carries on business in the other Contracting State of which the company paying the dividends is a resident, either a business activity through a permanent establishment situated therein, or performing independent personal services from a fix by means of a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such effectively connected with it. In this case, the provisions of Article 7 (business profits) or Article 15 (independent personal services), as the case may be, are applicable. (independent professions), as the case may be, are applicable.

 

  1. Where a company that is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not State, that other State may not impose any tax on dividends paid by the company, except to the extent that such dividends are paid to a resident of the other State. paid to a resident of that other State or to the extent that the holding in respect of which the dividends are paid is effectively connected with a dividends is effectively connected with a permanent establishment or a fixed base situated in that other State, or any tax on the undistributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other State. from that other State.

 

  1. Where a company that is a resident of a Contracting State and has a permanent establishment in the other Contracting State derives profits or income from the profits or income from that permanent establishment, any transfer or transaction treated as a transfer of such profits or income and made by that permanent establishment to the company which is a resident of the first-mentioned resident of the first-mentioned Contracting State may, notwithstanding any other provision of this Convention, be taxed according to the in accordance with the laws of the other Contracting State, but the rate of tax imposed on such transfer or on the transaction treated as such shall not exceed 5 percent.

 

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.

 

  1. However, 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 person receiving the interest is the recipient of the interest, the interest may be taxed in that State. However, 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 person receiving the interest is the beneficial owner thereof, the tax so charged shall not exceed

(a) 7.5 percent of the gross amount of the interest, in the case of:

(i) interest on trade receivables – including receivables represented by commercial paper – arising from deferred payments for goods supplied or services performed by an enterprise performed by a business;

(ii) interest on loans of any kind, not represented by bearer securities, granted by a banking enterprise;

(iii) interest on deposits, not represented by bearer securities, with a banking company;

(b) 10 percent of the gross amount of the interest, in all other cases.

  1. Notwithstanding the provisions of paragraph 2, interest shall be exempt from tax in the Contracting State in which it

(a) interest received by the Government of the other Contracting State or by a local authority thereof or by any other agency or instrumentality of that Government or local authority

(b) interest paid by the Government of that Contracting State or by a local authority thereof or by any other agency or instrumentality of that Government or local authority

(c) interest paid in respect of a guaranteed or insured loan or credit granted, guaranteed or insured by the Government of one of the contracting States or by a local authority thereof or by any other agency or organization of such Government or local authority, the purpose of which is the promotion of exports.

  1. For the purposes of paragraph 3, the term “agency or body of that Government or local authority” means

(a) in the case of Trinidad and Tobago:

(i) the Central Bank of Trinidad and Tobago;

(ii) any other financial institution whose capital is wholly owned by the Government of the Republic of Trinidad and Tobago, when so agreed from time to time by the competent authorities of the Contracting States

(b) in the case of Luxembourg:

(i) the “Société Nationale de Crédit et d’Investissement”;

(ii) the “Banque Centrale du Luxembourg”;

(iii) any other financial institution whose capital is wholly owned by the Government of the Grand Duchy of Luxembourg, when so agreed from time to time by the competent authorities of the Contracting States.

  1. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage or by a participation 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, but shall not include items which are to be considered as distributions within the meaning of Article 10 (dividends) of this Convention. Penalties for late payment shall not be considered as interest within the meaning of this Article.

 

  1. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, exercises of a Contracting State, carries on business in the other Contracting State in which the interest arises through a business activity through a permanent establishment situated therein, or performs in the other Contracting State in which the interest arises independent personal services from a fixed base situated therein. by means of a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with

(a) to that permanent establishment or fixed base; or

(b) the business activities referred to in paragraph 2 of Article 7 (Business Profits).

In such cases, the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services), as the case may be, shall apply.

 

  1. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where the payer of the interest, whether a resident of a Contracting State or not, has in a Contracting State a permanent establishment, or a branch, of a foreign enterprise, the interest shall be deemed to arise in that State.a permanent establishment or a fixed base in a Contracting State in connection with which the indebtedness on which the interest is paid was incurred and which bears the burden of which the indebtedness giving rise to the interest was incurred and which bears the expense of that interest, such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

 

  1. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and third persons, the interest persons, the amount of interest, having regard to the debt-claim for which it is paid, exceeds that which the debtor and the beneficial owner would have agreed in the absence of such relationship, the provisions of this article shall apply only to the latter 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.

 

  1. 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 of the royalties, 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 of the royalties is the beneficial owner, the tax so charged shall not exceed 10 percent of the amount of the royalties.

 

  1. (a) The term “royalties” as used in this section means payments of any kind for the use of, or the right to use, any copyright of literary, artistic, or scientific work, including cinematograph films and films, tapes, videotapes or other means of transmission or means of transmitting or reproducing images or sounds for use in connection with television or radio, of a patent, trademark, design or model, plan secret formula or process, or for the use of or the right to use any industrial, commercial or scientific equipment, or for information concerning experience acquired in the industrial, commercial or scientific

(b) the term does not include royalties, rentals or other amounts paid in consideration of the operation of mines, oil or gas wells, quarries or other natural resources.

  1. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the royalties resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, either business activity through a permanent establishment situated therein, or performing independent personal services from a fixed by means of a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with effectively connected:

(a) to that permanent establishment or fixed base; or

(b) the business activities referred to in paragraph 2 of Article 7 (Business Profits).

In such cases, the provisions of Article 7 (Business Profits) or Article 15 (Independent Personal Services)as the case may be, shall apply.

 

  1. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where 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 which incurred and which bears the expense of such royalties, such royalties shall be deemed to arise in the State in which theof the State in which the permanent establishment or fixed base is situated.

 

  1. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and the amount of the royalties, having regard to the service for which they are paid, exceeds that for which the amount of the royalties, taking into account the performance for which they are paid, exceeds the amount that would have been agreed upon by the obligor and the beneficial owner in the absence of such relationship,the provisions of this Article shall apply only to the latter 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

Management Expenses

  1. Management fees paid by a resident of a Contracting State to an enterprise of the other Contracting State May be taxed in that other State.

 

  1. However, such management fees may also be taxed in the Contracting State in which the payer of the management resident and according to the laws of that State, but the tax so charged shall not exceed 5 percent of the gross amount of the expenses.

 

  1. The term “management fee” as used in this Article means a business fee charged for management services or fees charged for technical and managerial services.

 

  1. The provisions of paragraphs 1 and 2 shall not apply where the enterprise to which the management fees are paid, which is an enterprise of a Contracting State, carries on business in the other Contracting State from which the management fees is paid, carries on business in the other Contracting State through a permanent establishment situated therein, andthe services for which the management fees are paid are effectively connected with

(a) to that permanent establishment; or

(b) the business activities referred to in paragraph 2 of Article 7 (Business Profits).

In such cases, the provisions of Article 7 (Business Profits) shall apply.

  1. Where, by reason of a special relationship between the debtor and the beneficiary or between both of them and third with third parties, the amount of the management fee, taking into account the services for which it is paid, exceeds the amount for which the services for which they are paid, exceeds the amount that would have been agreed upon by the obligor and the obligee in the absence of such relationship, the provisions of this section shall apply only to the latter amount. In such case, the excess portion 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 14

Capital Gains

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

 

  1. 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 movable property pertaining to a fixed base which a resident of a Contracting State has in the other Contracting State for the purpose of performing independent personal services including such gains from the alienation of such permanent establishment (alone or with the whole enterprise) or of such taxable income of a Contracting State from a permanent establishment or fixed base in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such permanent establishment (alone or with the whole enterprise) or fixed base may be taxed in that other State.

 

  1. Gains from the alienation of ships or aircraft operated in international traffic, or movable property 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 management of the enterprise is situated.

 

  1. 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 15

Independent Personal Services

  1. Income derived by a resident of a Contracting State from professional services or from other activities of an independent character shall be taxable only in that State. shall be taxable only in that State; however, such income may also be taxed in the other Contracting State if

However, such income may also be taxed in the other Contracting State in the following cases:

(a) if such resident has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only that part of the income which is attributable to the said fixed base may be taxed in that other State

(b) if his stay in the other State extends over a period or periods amounting in the aggregate to 183 days or more during any period of 12 consecutive months; in such case, only that portion of the income derived from activities performed in that other State may be taxed in that other State; or

(c) if the remuneration for his services in the other Contracting State is paid by a resident of that Contracting State or is borne by a permanent establishment or a fixed base situated in that Contracting State and exceeds in the year of the income an amount of 6,000 euros or its equivalent in the currency of Trinidad And Tobago currency.

  1. The term “professional services” includes, in particular, independent activities of scientific, technical, literary, artistic, educational or pedagogical activities, as well as the independent activities of doctors, lawyers engineers, architects, dentists and accountants.

Article 16

Dependent Professions

  1. Subject to the provisions of Articles 17 (fees), 19 (pensions, annuities and social security payments), 20 (civil service), 21 (social security payments), and 22 (social security payments), 20 (civil service), 21 (students and trainees) and 22 (teaching and research), the salaries, wages and other remuneration that a 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 exercised in that State remuneration received in respect thereof may be taxed in that other State.

 

  1. 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 period of 12 consecutive 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.

  1. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment on board a ship, aircraft or road vehicle operated in international traffic may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

Article 17

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 an enterprise member of the board of directors or supervisory board of a company which is a resident of the other Contracting State may be taxed in that other may be taxed in that other State.

 

Article 18

Artists and Athletes

  1. Notwithstanding the provisions of Articles 15 (Independent Personal Services) and 16 (Dependent Personal Services) income derived by a resident of a Contracting State from his personal activities as an entertainer, such as an entertainer, such as a theater, motion picture, radio or television artiste, or a musician or as an athlete, may be taxed in that other State.

 

  1. Where income from activities which an entertainer or sportsman personally performs in that capacity is attributed not to the entertainer or sportsman himself but to another person, such income may be taxed, notwithstanding the provisions of sections 7 (business profits), 15 (independent occupations) and 16 (dependent occupations), such income shall be taxed in the

(dependent occupations), in the Contracting State in which the activities of the artist or athlete are carried on.

 

  1. Notwithstanding paragraphs 1 and 2, income derived by entertainers or sportsmen from their activities in activities performed in a Contracting State shall be exempt from tax in the Contracting State where the stay in that State is substantially the income from the activities of an entertainer or a sportsperson is substantially financed by the other Contracting State.

 

Article 19

Pensions, Annuities and Social Security Payments

  1. Subject to the provisions of paragraph 2 of Article 20, pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

 

  1. Pensions and annuities arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State of also be taxable in the State in which they arise and according to the laws of that State.

 

  1. Notwithstanding the provisions of paragraphs 1 and 2, pensions and other amounts paid under a public scheme that is part of the social security legislation of a Contracting State shall be taxable only in that State.

(a) The term “annuity” means a fixed sum payable periodically at fixed times during the lifetime or for a specified period of time, or the duration of which may be determined, under an undertaking to make payment in return for full and adequate performance in money or money’s worth money.

(b) The term “pension” as used in this article means any payment, including lump-sum payments, made after retirement or death for services rendered or as compensation for injuries sustained in connection with previous employment.

 

Article 20

Public offices

  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 performed 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.

(c) Pensions paid by a Contracting State or a local authority thereof, either directly or out of funds established by it, to an individual in respect of services rendered to that

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

  1. The provisions of Articles 16 (dependent personal services), 17 (directors’ fees), 18 (artists and athletes) and 19 (pensions, annuities and social security payments) shall apply to remuneration and pensions paid in respect of services rendered in the course of a services rendered in connection with a business carried on by a Contracting State or one of its local authorities.

 

Article 21

Students and trainees

  1. Amounts 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 pursuing his or her studies therein, may be charged to the tax authorities of that State. Contracting State and who is present in the first-mentioned State solely for the purpose of furthering his education or training, shall be paid to him education or training, receives to defray the expenses of his maintenance, education or training shall not be taxable in that State, provided that such State, provided that they arise from sources outside that State.

 

  1. With respect to education grants, scholarships, and remuneration for salaried employment to which paragraph 1 of this Article does not apply, a student or trainee within the meaning of paragraph 1 shall, in addition during the period of his studies or training, the right to benefit from the same exemptions, reliefs or reductions of tax as are accorded to residents of the State in which he is staying.

Article 22

Education and research

  1. An individual who is or was a resident of a Contracting State at the commencement of his visit to the other Contracting State and who, at the commencement of his visit to the other State, and who, at the invitation of the Government of that other Contracting State or of a university or other educational institution located in that other Contracting State and accredited by the appropriate educational authority of that other Contracting State, travels to that other Contracting State for a period not exceeding two years primarily for the purpose of teaching or research at such university or other educational institution shall be exempt from tax by that other Contracting State on income received by him in respect of personal services teaching or research services at such university or other educational institution for a period not exceeding two years from the date of his first arrival in that other Contracting State.

 

  1. The exemption granted in paragraph 1 shall not apply to income earned for research if such research is undertaken not in the public interest but primarily for the private benefit of a particular person or persons.

 

Article 23

Other Income

Notwithstanding the provisions of any other Article of this Convention, items of income of a resident of a Contracting State, wherever arising, that is not expressly mentioned in the foregoing Articles of this Convention may be taxed by each Contracting State in accordance with the provisions of its domestic law.

 

Article 24

Capital

  1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and which is situated in the other Contracting State, may be taxed in that other State.

 

  1. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State in the other Contracting State, or by movable property pertaining to a fixed base of which a resident of a Contracting State has in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

 

  1. Capital represented by ships and aircraft operated in international traffic and by movable property used in the operation of such ships and aircraft may be taxed in that other State, 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 management of the enterprise is situated.

 

  1. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

 

Article 25

Elimination of Double Taxation

  1. In the case of Trinidad and Tobago, double taxation shall be avoided as follows

(a) Subject to the provisions of the law of Trinidad and Tobago regarding the deduction of Trinidad and Tobago tax from tax payable abroad (which shall not affect the general principle hereof):

(i) the Luxembourg tax payable under the laws of Luxembourg and in accordance with this Convention directly or by withholding from Luxembourg source profits or income (excluding, in the case of a dividend, the tax payable in respect of the profits out of which the dividend is paid) shall be deducted the payment of the dividend) is deductible from any Trinidad and Tobago tax computed on the basis of the same in the case of a dividend, the tax due on the profits on which the dividend was paid) shall be deductible from any Trinidad and Tobago tax computed on the same profits or income on which Luxembourg tax is computed

(ii) in the case of a dividend paid by a company which is a resident of Luxembourg to a company which is a resident of Trinidad and Tobago and which directly or indirectly controls at least 10 per cent of the voting rights in the company which is a resident of Luxembourg voting rights of the company paying the dividend, the deduction shall take into account, in addition to any tax for which a deduction is allowed under (a)(i), the Luxembourg tax payable by the company paying the dividends

 b) However, the deduction may in no case exceed the fraction of the tax, calculated before deduction corresponding to the income which is taxable in Luxembourg.

  1. In the case of Luxembourg, subject to the provisions of Luxembourg law concerning the elimination of the elimination of double taxation, which do not affect the general principle thereof, double taxation shall be avoided as follows:

(a) Where a resident of Luxembourg derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Trinidad and Tobago, Luxembourg shall exempt such income or capital from tax, subject to the provisions of subparagraphs (b), (c) and (d), but may, in computing the amount of tax on the remainder of the resident’s income or capital, apply the same rates of tax as if the

(b) Where a Luxembourg resident receives items of income which, in accordance with the provisions of Articles 10 (dividends), 11 (interest), 12 (royalties), 13 (management fees), 18 (artists and athletes), 19, paragraph 2 (pensions, annuities and social security payments) and 23 (other income) are taxable in Trinidad and Tobago, Luxembourg shall allow a deduction from the tax it levies on the income of that resident of an amount equal to the deduction of an amount equal to the tax paid in Trinidad and Tobago. This deduction may not, however, exceed the fraction of the tax, calculated before deduction, corresponding to these elements of income received from Trinidad and Tobago.

c) Where a company which is a resident of Luxembourg receives dividends from Trinidad and Tobago, Luxembourg exempts such dividends from tax, provided that such company which is a resident of Luxembourg has Luxembourg holds directly since the beginning of its fiscal year at least 10 per cent of the capital of the company of the company paying the dividends and if that company is subject in Trinidad and Tobago to a corporate income tax to a corporate income tax in Trinidad and Tobago corresponding to the Luxembourg corporate income tax. The above-mentioned of the Trinidad and Tobago company are, under the same conditions, exempt from the Luxembourg wealth tax on wealth. The exemption provided for in this subparagraph also applies even if the Trinidad and Tobago company is exempt from tax or taxed at a reduced rate in Trinidad and Tobago in accordance with the legislation of Trinidad and Tobago providing for incentives to encourage investment in agricultural, industrial, tourism or agricultural, industrial, tourism or any other activities as may be mutually agreed upon by the competent authorities of both States.

(d) Where, by reason of the laws of Trinidad and Tobago, dividends are exempt or taxed at a rate which is less than the 10 percent referred to in paragraph 2(b) of Article 10, for the purpose of encouraging investment in agricultural, industrial, tourism or any other activities as may be mutually agreed upon by the designated by mutual agreement between the competent authorities of the two States, then such tax shall be deemed to be the tax shall be deemed to be levied for the purpose of computing the deduction referred to in subparagraph (b) of this paragraph at 10 percent of the gross amount of such dividends. of the gross amount of such dividends. The provisions of this subparagraph shall apply for a period of 10 years beginning on January 1 of the calendar year immediately following the year in which this Convention enters into force. This period may be extended by mutual agreement between the competent authorities.

 

Article 26

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 obligation that is different from or more burdensome than those to which nationals of that other State who are or may be

of that other State who are in the same situation, in particular with regard to residence.

 

  1. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably assessed in that other State than the taxation of enterprises of that other State carrying on the same business. carrying on the same activity.

 

  1. Nothing in this Article shall be construed to require a Contracting State to grant to residents of the other Contracting State personal allowances, reliefs and reductions of tax on account of its own residents.

 

  1. Unless the provisions of Article 9 (Associated Enterprises), paragraph 8 of Article 11 (Interest), paragraph 6 of Article 12 (Income Tax), or paragraph 5 of Article 13 (Income Tax) are not applicable, the provisions of Article 9 (Associated Enterprises), paragraph 8 of Article 11 (Interest), paragraph 6 of Article 12 (Income Tax), or paragraph 6 of Article 14 (Income Tax) shall apply. (interest), paragraph 6 of Article 12 (royalties), paragraph 5 of Article 13 (management fees) are applicable, interest, royalties, management interest, royalties, management fees and other expenses paid by an enterprise of a Contracting State to a resident  of the other Contracting State shall, in determining the taxable profits of that enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable the same conditions as if they had been contracted with a resident of the first-mentioned State.

 

  1. Enterprises of a Contracting State, the capital of which is wholly or partly, directly or indirectly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subject in the first-mentioned State to any tax or duty thereon which other or more burdensome than those to which other similar enterprises of the first-mentioned State are or may be other similar enterprises of the first-mentioned State.

 

  1. The term “taxation” in this Article means the taxes which are the subject of this Convention.

 

Article 27

Mutual Agreement Procedure

  1. Where a person considers that the action of one or both of the Contracting States results or will result for him in taxation not in accordance with the provisions of this Convention, he may, notwithstanding the remedies provided by the domestic law of those States, he may submit his case to the competent authority of the Contracting State of which he is a national. Contracting State of which it is a resident or, if its case comes under paragraph 1 of Article 26 (non-discrimination), to that of the Contracting State of which he is a national. The case must be submitted within three years of the first notification of the measure that results in taxation not in accordance with the provisions of this Convention.

 

  1. The competent authority shall endeavor, 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 Contracting State, with a view to the avoidance of taxation not in accordance with this Convention. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.

 

  1. The competent authorities of the Contracting States shall endeavor by mutual agreement to resolve any difficulties or doubts arising as to the interpretation or application of this Convention. Convention. They may also consult together for the elimination of double taxation in cases not provided for in this Convention.

 

  1. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement as described in this Convention. The competent authorities shall establish, through consultations appropriate bilateral procedures, conditions, methods and techniques for implementing the mutual agreement procedure provided for in this The competent authorities shall establish, through consultations, appropriate bilateral procedures, conditions, methods and techniques for implementing the mutual agreement procedure provided for in this Article.

 

Article 28

Exchange of Information

  1. The competent authorities of the Contracting States shall exchange such information as is necessary to carry out the provisions of this Convention or the domestic laws of the Contracting States. of this Convention or of the domestic laws of the Contracting States concerning taxes covered by this Convention to the extent that the convention insofar as the taxation thereunder is not contrary to this Convention. Information received by a Contracting State shall be treated as secret in the same manner as the 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 taxes covered by this Convention covered by this Convention, or in connection with the assessment or collection of, or the enforcement or prosecution in respect of, any such tax, or in connection with the determination of any appeal in respect of any such tax or in the determination of appeals in relation to such taxes. Such persons or authorities shall use such information only for such purposes. They may disclose such information in public court proceedings or in judicial decisions.

 

  1. In no case shall the provisions of paragraph 1 be construed to impose on a Contracting State the obligation

(a) to take administrative action at variance with the laws and administrative practice of that or of the other Contracting State

(b) to furnish 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.

 

Article 29

Members of Diplomatic Missions and Consular Posts

The provisions of this Convention shall not affect the fiscal privileges of members of diplomatic missions or consular posts members of diplomatic missions or consular posts under the general rules of international law or the provisions of special agreements.

Article 30

Miscellaneous rules

  1. Where income arising in a Contracting State is derived by a company which is a resident of the other Contracting State and one or more persons who are not residents of that other Contracting State

(a) have directly or indirectly, or through one or more companies, irrespective of their country of residence, a substantial interest in that company, whether by way of participation or otherwise, 

(b) exercise directly or indirectly, alone or together, the management or control of such company, any provision of this Convention providing for an exemption from or reduction of tax shall not apply if more than 50 percent of such income is used to satisfy obligations to such persons (including interest, royalties, fees, and interest, royalties, development, advertising, establishment and travel expenses depreciation of property of any kind, including intangible property and production processes).

  1. The foregoing provisions do not apply where the company establishes that its main purpose, its activities and the acquisition and retention of the interest or other income-producing property in question are motivated by sound business considerations and are therefore not primarily intended to reap the benefits of this Agreement.

 

  1. This Convention shall not apply to holding companies within the meaning of the special Luxembourg legislation currently law of July 31, 1929 and the Grand Ducal Decree of December 17, 1938. It does not income derived by a resident of Trinidad and Tobago from such companies, nor to shares or other capital securities of such companies which that person owns.

 

Section 31

Entry into Force

Each Contracting State shall notify the other State of the completion of the formalities required by its laws for the entry into force of this Convention. This Convention shall enter into force on the date of the later of these notifications and shall thereafter have effect in both Contracting States:

(a) in respect of taxes withheld at source, on or after the first day of January in the calendar year next following the year in which this Convention enters into force

(b) in respect of other taxes on income, and taxes on capital, to the taxes payable in respect of any taxable year beginning on or after the first day of January in the calendar year immediately following the year in which this Convention enters into force in which this Convention enters into force.

Article 32

Denunciation

  1. This Convention shall remain in force indefinitely, but either Contracting State may give written notice through diplomatic channels of its notify the other Contracting State of its denunciation in writing through diplomatic channels not later than June 30 of any calendar year beginning after the expiration of entry into force.
  2. In such event, this Convention shall cease to have effect

(a) in respect of taxes withheld at source, to income allocated on or after the first day of January in the calendar year immediately following the year in which notice is given

(b) in respect of other taxes on income, and taxes on capital, to the taxes payable for any tax year beginning on or after January 1 of the calendar year immediately following the year in which notice is given.

 

IN WITNESS WHEREOF the undersigned, being duly authorized thereto, have signed this Convention.

 

DONE at Luxembourg, this 7th day of May 2001, in duplicate in the English and French languages, both texts being equally authentic.

 

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