S.I. No. 397/2013 - Double Taxation Relief (Taxes on Income and Capital Gains) (Ukraine) Order 2013.
Notice of the making of this Statutory Instrument was published in | ||
“Iris Oifigiúil” of 11th October, 2013. | ||
WHEREAS it is enacted by section 826(1) (as amended by section 157 of the Finance Act 2010 (No. 5 of 2010)) of the Taxes Consolidation Act 1997 (No. 39 of 1997) that where the Government by order declare that arrangements specified in the order have been made with the government of any territory outside the State in relation to affording relief from double taxation in respect of income tax, corporation tax in respect of income and chargeable gains, capital gains tax or any taxes of a similar character imposed by the laws of the State or by the laws of that territory and, in the case of taxes of any kind or description imposed by the laws of the State or the laws of that territory, in relation to exchanging information for the purposes of the prevention and detection of tax evasion, granting relief from taxation under the laws of that territory to persons who are resident in the State for the purposes of tax or collecting and recovering tax (including interest, penalties and costs in connection with such tax) for the purpose of the prevention of tax evasion, and that it is expedient that those arrangements should have the force of law, and that the order so made is referred to in Part 1 of Schedule 24A of the Taxes Consolidation Act 1997 , then, subject to section 826 of that Act, the arrangements shall, notwithstanding any enactment, have the force of law as if such order were an Act of the Oireachtas on and from the date of the insertion of a reference to the order into Part 1 of Schedule 24A; | ||
AND WHEREAS it is further enacted by section 826 (6) of the Taxes Consolidation Act 1997 that where such an order is proposed to be made, a draft of the order shall be laid before Dáil Éireann and the order shall not be made until a resolution approving of the draft has been passed by Dáil Éireann; | ||
AND WHEREAS a draft of the following Order has been laid before Dáil Éireann and a resolution approving of the draft has been passed by Dáil Éireann; | ||
NOW, the Government, in exercise of the powers conferred on them by section 826(1) (as amended by section 157 of the Finance Act 2010 (No. 5 of 2010)) of the Taxes Consolidation Act 1997 , hereby order as follows: | ||
1. This Order may be cited as the Double Taxation Relief (Taxes on Income and Capital Gains) (Ukraine) Order 2013. | ||
2. It is declared that- | ||
(a) the arrangements specified in the Convention, the text of which is set out in the Schedule, have been made with the Government of Ukraine in relation to— | ||
(i) affording relief from double taxation and the prevention of fiscal evasion in respect of taxes on income, corporation tax in respect of income and chargeable gains, capital gains tax and any taxes of a similar character imposed by the laws of the State or by the laws of Ukraine, and | ||
(ii) in the case of taxes of any kind or description imposed by the laws of the State or the laws of Ukraine, exchanging information for the purposes of the prevention and detection of tax evasion and granting relief from taxation under the laws of Ukraine to persons who are resident in the State for the purposes of tax, | ||
and | ||
(b) it is expedient that those arrangements should have the force of law. | ||
SCHEDULE | ||
CONVENTION | ||
between the Government of Ireland | ||
and the Government of Ukraine | ||
for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains | ||
The Government of Ireland and the Government of Ukraine, | ||
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 gains, | ||
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 and capital gains imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied. | ||
2. There shall be regarded as taxes on income and capital gains 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 Ireland: | ||
(i) the income tax; | ||
(ii) the universal social charge on income; | ||
(iii) the corporation tax; and | ||
(iv) the capital gains tax; | ||
(hereinafter referred to as "Irish tax"); | ||
b) in the case of Ukraine: | ||
(i) the tax on profits of enterprises; and | ||
(ii) the income tax on individuals; | ||
(hereinafter referred to as "Ukrainian tax"). | ||
4. The Convention shall apply also 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 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 "Ireland" includes any area outside the territorial waters of Ireland which has been or may hereafter be designated, under the laws of Ireland concerning the Exclusive Economic Zone and the Continental Shelf, as an area within which Ireland may exercise such sovereign rights and jurisdiction as are in conformity with international law; | ||
b) the term "Ukraine" when used in geographical sense, means the territory of Ukraine, its Continental Shelf and its exclusive (maritime) economic zone, including any area outside the territorial sea of Ukraine which in accordance with international law has been or may hereafter be designated, as an area within which the rights of Ukraine with respect to the sea bed and sub-soil and their natural resources may be exercised; | ||
c) the term "national", in relation to a Contracting State, means: | ||
(i) any individual possessing the nationality or citizenship of that Contracting State; | ||
and | ||
(ii) any legal person, partnership or association deriving its status as such from the laws in force in that Contracting State; | ||
d) the terms "a Contracting State", "one of the Contracting States" and "the other Contracting State" mean Ireland or Ukraine, as the context requires; and the term "Contracting States" means Ireland and Ukraine; | ||
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 other 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 "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; | ||
i) the term "competent authority" means, in the case of Ireland, the Revenue Commissioners or their authorised representative, and, in the case of Ukraine, the Ministry of Finance of Ukraine or its authorised representative. | ||
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 at that time 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 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 registration 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 of this Article 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 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 only 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 only 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 only 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 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 only 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" includes especially: | ||
a) a place of management; | ||
b) a branch; | ||
c) an office; | ||
d) a factory; | ||
e) a workshop; | ||
f) an installation or structure for the exploration of natural resources; | ||
g) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; | ||
and | ||
h) a warehouse or other premises used as a sales outlet. | ||
3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months. | ||
4. A person carrying out activities offshore in a Contracting State in connection with the exploration or exploitation of the sea bed and the sub-soil and their natural resources situated in that Contracting State shall be deemed to be carrying on a business through a permanent establishment in that Contracting 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 of this Article, 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 the 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 such activities are limited to those mentioned in paragraph 5 of this Article 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 and conducts sales-related activities in respect of them, such as advertising or promotional activities. | ||
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) 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 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 that permanent establishment. | ||
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 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 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 or gains 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 | ||
INTERNATIONAL TRANSPORT | ||
1. Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. | ||
2. For the purposes of this Article, profits derived from the operation of ships or aircraft in international traffic include profits derived from the rental of ships or aircraft if such ships or aircraft are operated in international traffic or if such rental profits are incidental to other profits described in paragraph 1 of this Article. | ||
3. The provisions of paragraph 1 of this Article shall also apply to profits from 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 by a Contracting State 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 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 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 25 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 by mutual agreement settle the mode of application of these limitations. | ||
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, as well as any income or distribution assimilated to income from shares under the taxation laws of the Contracting State of which the company paying the dividends or income or 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 case the provisions of Article 7 or Article 14 of this Convention, 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 companys undistributed profits to a tax on the companys 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 of this Article, any such interest as is mentioned in paragraph 1 of this Article shall be taxable at 5 per cent of the gross amount of the interest in the case of interest arising in a Contracting State and paid: | ||
i) in connection with the sale on credit of industrial, commercial or scientific equipment; | ||
ii) on any loan granted by a bank. | ||
The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. | ||
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 debtors 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 as well as all other income assimilated to income from money lent by the laws of the State in which income arises but does not include any income which is treated as a dividend under Article 10. | ||
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 case the provisions of Article 7 or Article 14 of this Convention, 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 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. | ||
8. Notwithstanding the provisions of paragraph 2 of this Article, interest arising in a Contracting State shall be exempt from tax in that State if— | ||
a) the beneficial owner of the interest is the Government of the other Contracting State, or any agency thereof authorised as such by the Government of that other Contracting State, or | ||
b) such interest is paid— | ||
i) in respect of any loan made, guaranteed or insured, or | ||
ii) in respect of any debt claim of whatever kind guaranteed, insured or directly or indirectly financed | ||
by, or on behalf of, the Government of either Contracting State or any agency thereof authorised as such by the Government of the Contracting State. | ||
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 or scientific work including cinematograph films, any patent, trade mark, secret formula or process, or for information concerning industrial, commercial or scientific experience. | ||
3. However, such royalties may also be taxed in the Contracting State in which they arise and in accordance with the laws of that Contracting State, but if the beneficial owner of the royalties is the resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. | ||
4. Notwithstanding the provisions of paragraph 3 of this Article, in the case of payment of royalties in respect of any copyright of scientific work, any patent, trade mark, secret formula, process or information concerning industrial, commercial or scientific experience the tax charged shall not exceed 5 per cent of the gross amount of the royalties. The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of this limitation. | ||
5. The provisions of paragraphs 1, 3 and 4 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 case the provisions of Article 7 or Article 14 of this Convention, as the case may be, shall apply. | ||
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 Convention. | ||
7. 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 in connection with which the obligation to pay the royalties are paid 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. | ||
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 of this Convention and situated in the other Contracting State may be taxed in that other State. | ||
2. Gains derived by a resident of a Contracting State from the alienation of: | ||
a) shares, other than shares quoted on a recognised stock exchange, deriving their value or the greater part of their value directly or indirectly from immovable property situated in the other Contracting State, or | ||
b) an interest in a partnership or in a trust, or any other body the assets of which consist principally of immovable property situated in the other Contracting State, or of shares referred to in sub-paragraph a) above, may be taxed in that other State. | ||
3. 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 gains, during the twelve month period preceding such alienation, held a participation, directly or indirectly, of at least 25 per cent of the capital of that company. The provisions of this paragraph shall not apply where such a gain has been derived as a consequence of a reorganisation, merger or division of companies or similar transaction. | ||
4. 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. | ||
5. Gains from the alienation of ships or aircraft operated in international traffic by an enterprise of a Contracting State or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that Contracting State. | ||
6. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this Article shall be taxable only in the Contracting State of which the alienator is a resident. | ||
7. The provisions of paragraph 6 of this Article shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during five years immediately preceding the alienation of the property if the property was held by the individual before he became a resident of that other State. | ||
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 of this Convention, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State. | ||
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 commencing or ending in the fiscal year concerned of the other State, 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, may be taxed 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 State. | ||
Article 17 | ||
ARTISTES AND SPORTSMEN | ||
1. Notwithstanding the provisions of Articles 14 and 15 of this Convention, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. | ||
2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15 of this Convention, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised. | ||
3. The provisions of paragraphs 1 and 2 of this Article shall not apply to income derived from activities performed in a Contracting State by entertainers or sportsmen if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or political subdivisions or local authorities thereof. In such a case, the income shall be taxable only in the Contracting State in which the entertainer or the sportsman is a resident. | ||
Article 18 | ||
PENSIONS AND ANNUITIES | ||
1. Subject to the provisions of paragraph 2 of Article 19 of this Convention, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment and any annuity paid to such resident shall be taxable only in that State. | ||
2. The term "annuity" means a stated sum payable to an individual periodically at stated times during his 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 moneys worth. | ||
3. Notwithstanding the provisions of paragraph 1 of this Article, pensions and other similar payments made under the social security legislation of a Contracting State 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 or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature 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 or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature 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 of this Convention 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 or a local authority thereof. | ||
Article 20 | ||
STUDENTS | ||
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 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 the first-mentioned State, provided that such payments arise from sources outside that State. | ||
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 Convention shall be taxable only in that State. | ||
2. The provisions of paragraph 1 of this Article shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6 of this Convention, 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 of this Convention, as the case may be, shall apply. | ||
3. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of the Convention and arising in the other Contracting State may also be taxed in that other State. | ||
Article 22 | ||
ELIMINATION OF DOUBLE TAXATION | ||
1. Subject to the provisions of the laws of Ireland regarding the allowance a credit against Irish tax of tax payable in a territory outside Ireland (which shall not affect the general principle hereof): | ||
a) Ukrainian tax payable under the laws of Ukraine and in accordance with this Convention, whether directly or by deduction, on profits, income or gains from sources within Ukraine (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 Irish tax computed by reference to the same profits, income or gains by reference to which Ukrainian tax is computed; | ||
b) in the case of a dividend paid by a company which is a resident of Ukraine to a company which is a resident of Ireland and which controls directly or indirectly 25 per cent or more of the voting power in the company paying the dividend, the credit shall take into account (in addition to any Ukrainian tax creditable under the provisions of subparagraph a) of this paragraph) Ukrainian tax payable by the company in respect of the profits out of which such dividend is paid. | ||
2. Subject to the provisions of the law of Ukraine regarding the elimination of tax payable in a territory outside Ukraine (which shall not affect the general principle hereof), Irish tax payable under the laws of Ireland and in accordance with this Convention, whether directly or by deduction, on profits, income or gains from sources within Ireland shall be allowed as a credit against any Ukrainian tax computed by reference to the same profits, income or gains by reference to which the Irish tax is computed. Such credit shall not, however, exceed that part of the Ukrainian tax, as computed before the credit is given, which is attributable, as the case may be, to the profits, income or gains which may be taxed in Ireland. | ||
3. Where in accordance with any provision of the Convention income derived by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. | ||
4. For the purposes of paragraphs 1 and 2 of this Article, profits, income and gains owned by a resident of a Contracting State which 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 23 | ||
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. 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 6 of Article 12 of this Convention, 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. The provisions of this Article shall apply to taxes covered by this Convention. | ||
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 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 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 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 the application of 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. | ||
Article 25 | ||
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 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 political subdivisions or 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 of this Article 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 referred to in paragraph 1 of this Article, 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 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 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 of this Article 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 of this Article 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 26 | ||
MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS | ||
Nothing in this Convention shall affect the fiscal privileges accorded to members of diplomatic missions or 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, through the diplomatic channel the completion of the procedures required by its domestic law for the bringing into force of this Convention. This Convention shall enter into force on the date of the later of these notifications and shall thereupon have effect: | ||
a) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January next following the date on which the Convention enters into force; | ||
b) in respect of other taxes: | ||
(i) in the case of Ireland, for any financial year as respects corporation tax and for any year of assessment as respects income tax, universal social charge on income and capital gains tax beginning on or after the first day of January next following the date on which the Convention enters into force; | ||
(ii) in the case of Ukraine, for taxable periods beginning on or after the first day of January next following the date on which the Convention enters into force. | ||
2. As respects relations between Ukraine and Ireland, the Agreement dated 17 December 1986 between the Government of the Union of Soviet Socialist Republics and the Government of Ireland for the Avoidance of Double Taxation of Air Transport Undertakings and their Employees shall cease to have effect from the date on which the provisions of this Convention take effect. | ||
Article 28 | ||
TERMINATION | ||
This Convention shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Convention, through the diplomatic channel, by giving notice of termination at least six months before the end of any calendar year beginning after the expiry of five years from the date of entry into force of the Convention. | ||
In such event, the Convention shall cease to have effect: | ||
a) in respect of taxes withheld at source, for amount paid or credited on or after the first day of January next following the day on which the notice is given; | ||
b) in respect of other taxes | ||
(i) in the case of Ireland, for any financial year as respects corporation tax and for any year of assessment as respects income tax, universal social charge on income and capital gains tax beginning on or after the first day of January next following the date on which the Notice is given; | ||
(ii) in the case of Ukraine, for taxable periods beginning on or after the first day January next following the date on which the notice is given. | ||
In witness whereof the undersigned, duly authorised thereto have signed this Convention. | ||
Done in duplicate at Kiev this 19th day of April 2013 in Ukrainian and English languages, both texts being equally authoritative. | ||
| ||
PROTOCOL | ||
to the Convention | ||
between the Government of Ireland | ||
and the Government of Ukraine | ||
for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains | ||
On signing the Convention between the Government of Ireland and the Government of Ukraine for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains, the signatories have agreed that the following provisions shall form an integral part of the Convention. | ||
Ad Article 7 | ||
With reference to the interpretation of paragraphs 2 and 3 of Article 7, the Contracting States agree that regard shall be had to the Commentary in the OECD Model Tax Convention on Income and Capital on paragraphs 2 and 3 of Article 7 of the Model, as it read on 15 July 2005 after the adoption of the sixth update of the Model by the Council of the OECD. | ||
Ad Articles 11 and 12 | ||
If, after the date of signature of this Convention, Ukraine should agree in any Convention for the Avoidance of Double Taxation to grant exemption from Ukrainian tax on interest or royalty payments arising in the Ukraine or to apply lower rates of Ukrainian tax on such payments than those provided for in Articles 11 and 12 of this Convention, then the Contracting States shall have the right to renegotiate these Articles with a view to the application of such exemption or lower rate. | ||
In witness whereof the undersigned, duly authorised thereto have signed this Protocol. | ||
Done in duplicate at Kiev this 19th day of April 2013 in Ukrainian and English languages, both texts being equally authoritative. | ||
| ||
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GIVEN under the Official Seal of the Government, | ||
8 October 2013. | ||
ENDA KENNY, | ||
Taoiseach. | ||
