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The Government of Canada and the Government of the Republic
of Uzbekistan, hereinafter referred to as the ``Parties'',
desiring to conclude a Convention for the avoidance of
double taxation and the prevention of fiscal evasion with
respect to taxes on income and on capital, have agreed as
follows:
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This Convention shall apply to persons who are residents of
one or both of the Contracting States.
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1. This Convention shall apply to taxes on income and on
capital imposed on behalf of Canada and on behalf of the
Republic of Uzbekistan or of its local authorities, irrespective of
the manner in which they are levied.
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2. There shall be regarded as taxes on income and on capital
all taxes imposed on total income, on total capital, or on elements
of income or of capital, including taxes on gains from the
alienation of movable or immovable property, taxes on the total
amounts of wages or salaries paid by enterprises, as well as taxes
on capital appreciation.
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3. The existing taxes to which this Convention shall apply are,
in particular:
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(a) in the case of Canada, the taxes imposed by the
Government of Canada under the Income Tax Act, (hereinafter
referred to as ``Canadian tax'');
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(b) in the case of the Republic of Uzbekistan:
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(i) the tax on income (profits) of legal persons,
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(ii) the tax on income of individuals, and
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(hereinafter referred to as ``Uzbekistan tax'').
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4. This Convention shall also apply to any substantially
similar taxes which are imposed by either Contracting State after
the date of signature of this Convention in addition to, or in place
of, the existing taxes. The competent authorities of the
Contracting States shall notify each other of any substantial
changes which have been made in their respective taxation laws.
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1. For the purposes of this Convention, unless the context
otherwise requires:
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(a) the term ``Canada'' used in a geographical sense, means the
territory of Canada, including:
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(i) any area beyond the territorial sea of Canada which, in
accordance with international law and the laws of Canada,
is an area within which Canada may exercise rights with
respect to the seabed and subsoil and their natural
resources,
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(ii) the sea and airspace above every area referred to in
clause (i) in respect of any activity carried on in connection
with the exploration for or the exploitation of the natural
resources referred to therein;
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(b) the term ``Uzbekistan'' means the Republic of Uzbekistan,
including the territorial sea, and any area outside the territorial
sea within which, in accordance with international law, the
Republic of Uzbekistan has sovereign rights for the purpose
of exploring and exploiting the natural resources of the seabed
and its subsoil and the superjacent waters;
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(c) the terms ``a Contracting State'' and ``the other Contracting
State'' mean, as the context requires, Canada or Uzbekistan;
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(d) 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;
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(e) the term ``person'' includes an individual, an estate, a trust,
a company, a partnership and any other body of persons;
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(f) the term ``company'' means any body corporate or any
entity which is treated as a body corporate for tax purposes;
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(g) the term ``competent authority'' means:
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(i) in the case of Canada, the Minister of National Revenue
or his authorized representative,
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(ii) in the case of the Republic of Uzbekistan, the Chairman
of the State Tax Committee or his authorized
representative;
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(h) the term ``national'' means:
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(i) any individual possessing the nationality of a
Contracting State,
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(ii) any legal person, partnership and association deriving
its status as such from the laws in force in a Contracting
State;
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(i) the term ``international traffic'' with reference to a resident
of a Contracting State means any voyage of a ship or aircraft
to transport passengers or property (whether or not operated
or used by that resident) except where the principal purpose of
the voyage is to transport passengers or property between
places within the other Contracting State.
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2. As regards the application at any time of this 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 for the purposes of the law of that State concerning the taxes
to which this Convention applies.
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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 incorporation, place of management or any
other criterion of a similar nature. But this term does not include
any person who is liable to tax in that State in respect only of
income from sources in that State or capital situated therein. The
term shall also include the government of a Contracting State or
a local authority thereof, or any agency or instrumentality of any
such government or authority.
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2. Where by reason of the provisions of paragraph 1 an
individual is a resident of both Contracting States, then his status
shall be determined as follows:
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(a) he shall be deemed to be a resident only of the State in
which he has a permanent home available to him; if he has a
permanent home available to him in both States, he shall be
deemed to be a resident only of the State with which his
personal and economic relations are closer (centre of vital
interests);
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(b) if the State in which he has his centre of vital interests
cannot be determined, or if he has not a permanent home
available to him in either State, he shall be deemed to be a
resident only of the State in which he has an habitual abode;
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(c) if he has an habitual abode in both States or in neither of
them, he shall be deemed to be a resident only of the State of
which he is a national;
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(d) if he is a national of both States or of neither of them, the
competent authorities of the Contracting States shall settle the
question by mutual agreement.
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3. Where by reason of the provisions of paragraph 1 a
company is a resident of both Contracting States, then its status
shall be determined as follows:
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(a) it shall be deemed to be a resident only of the State of which
it is a national;
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(b) if it is a national of neither of the States, it shall be deemed
to be a resident only of the State in which its place of effective
management is situated.
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4. Where by reason of the provisions of paragraph 1 a person
other than an individual or a company is a resident of both
Contracting States, the competent authorities of the Contracting
States shall by mutual agreement endeavour to settle the question
and to determine the mode of application of this Convention to
such person. In the absence of such agreement, such person shall
not be considered to be a resident of either Contracting State for
the purposes of enjoying benefits under this Convention.
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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.
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2. The term ``permanent establishment'' includes especially:
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(a) a place of management;
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(f) a mine, an oil or gas well, a quarry or any other place
relating to the exploration for or the exploitation of natural
resources.
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3. A building site or construction or installation project
constitutes a permanent establishment only if it lasts for more
than twelve months.
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4. Notwithstanding the preceding provisions of this Article,
the term ``permanent establishment'' shall be deemed not to
include:
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(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
enterprise;
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(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery;
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(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of
processing by another enterprise;
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(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;
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(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;
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(f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs (a) to
(e) provided that the overall activity of the fixed place of
business resulting from this combination is of a preparatory or
auxiliary character.
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5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person - other than an agent of an independent status
to whom paragraph 6 applies - is acting on behalf of an
enterprise and has, and habitually exercises, in a Contracting
State an authority to conclude contracts on behalf of the
enterprise, that enterprise shall be deemed to have a permanent
establishment in that State in respect of any activities which that
person undertakes for the enterprise unless the activities of such
person are limited to those mentioned in paragraph 4 which, if
exercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the
provisions of that paragraph.
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6. An enterprise shall not be deemed to have a permanent
establishment in a Contracting State merely because it carries on
business in that State through a broker, general commission
agent or any other agent of an independent status, provided that
such persons are acting in the ordinary course of their business.
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7. The fact that a company which is a resident of a Contracting
State controls or is controlled by a company which is a resident
of the other Contracting State, or which carries on business in that
other State (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.
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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.
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2. For the purposes of this Convention, the term ``immovable
property'' shall have the meaning which it has for the purposes
of the taxation law of the Contracting State in which the property
in question is situated. The term shall in any case include property
accessory to immovable property, livestock and equipment used
in agriculture and forestry, rights to which the provisions of
general law respecting landed property apply, usufruct of
immovable property and rights to variable or fixed payments as
consideration for the working of, or the right to work, mineral
deposits, sources and other natural resources; ships and aircraft
shall not be regarded as immovable property.
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3. The provisions of paragraph 1 shall apply to income derived
from the direct use, letting, or use in any other form of immovable
property and to income from the alienation of such property.
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4. The provisions of paragraphs 1 and 3 shall also apply to the
income from immovable property of an enterprise and to income
from immovable property used for the performance of
independent personal services.
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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 or has carried 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.
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2. Subject to the provisions of paragraph 3, where an
enterprise of a Contracting State carries on business in the other
Contracting State through a permanent establishment situated
therein, there shall in each Contracting State be attributed to that
permanent establishment the profits which it might be expected
to make if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar conditions
and dealing wholly independently with the enterprise of which
it is a permanent establishment and with all other persons.
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3. In the determination of the profits of a permanent
establishment, there shall be allowed those deductible expenses
which are incurred for the purposes of the business of the
permanent establishment including executive and general
administrative expenses, whether incurred in the State in which
the permanent establishment is situated or elsewhere. However,
no such deductions shall be allowed in respect of amounts, if any,
paid (otherwise than towards reimbursement of actual expenses)
by the permanent establishment to the head office of the
enterprise or any of its other offices, by way of royalties as
defined in Article 12, or by way of commission, for specific
services performed or for management, or, except in the case of
a banking enterprise, by way of interest as defined in Article 11,
on moneys lent to the permanent establishment. Likewise, no
account shall be taken, in the determination of the profits of a
permanent establishment, for amounts charged (otherwise than
towards reimbursement of actual expenses), by the permanent
establishment to the head office of the enterprise or any of its
other offices, by way of royalties as defined in Article 12, or by
way of commission for specific services performed or for
management, or, except in the case of a banking enterprise, by
way of interest as defined in Article 11, on moneys lent to the
head office of the enterprise or any of its other offices.
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4. Insofar as it has been customary in a Contracting State to
determine the profits to be attributed to a permanent
establishment on the basis of an apportionment of the total profits
of the enterprise to its various parts, nothing in paragraph 2 shall
preclude that 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.
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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.
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6. For the purposes of the preceding paragraphs, the profits to
be attributed to the permanent establishment shall be determined
by the same method year by year unless there is good and
sufficient reason to the contrary.
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7. Where profits include items of income which are dealt with
separately in other Articles of this Convention, then the
provisions of those Articles shall not be affected by the
provisions of this Article.
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1. Profits derived by an enterprise of a Contracting State from
the operation of ships or aircraft in international traffic shall be
taxable only in that State.
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2. Notwithstanding the provisions of paragraph 1 and of
Article 7, profits derived by an enterprise of a Contracting State
from a voyage of a ship or aircraft where the principal purpose of
the voyage is to transport passengers or property between places
in the other Contracting State may be taxed in that other State.
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3. For the purposes of this Article, profits derived by an
enterprise of a Contracting State from the operation of ships or
aircraft in international traffic include profits from:
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(a) the rental on a bareboat basis of ships or aircraft operated
in international traffic, and
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(b) the use, maintenance or rental of containers (including
trailers and related equipment for the transport of containers)
used in international traffic,
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where such rental or such use, maintenance or rental, as the case
may be, is incidental to the operation of ships or aircraft in
international traffic.
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4. The provisions of paragraphs 1 and 2 shall also apply to
profits from the participation in a pool, a joint business or an
international operating agency.
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1. Where:
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(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
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(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,
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and in either case conditions are made or imposed between the
two enterprises in their commercial or financial relations which
differ from those which would be made between independent
enterprises, then any profits which would, but for those
conditions, have accrued to one of the enterprises, but, by reason
of those conditions, have not so accrued, may be included in the
profits of that enterprise and taxed accordingly.
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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 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.
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3. A Contracting State shall not change the profits of an
enterprise in the circumstances referred to in paragraph 1 after
five years from the end of the year in which the profits which
would be subject to such change would have accrued to that
enterprise.
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4. The provisions of paragraphs 2 and 3 shall not apply in the
case of fraud or wilful default.
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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.
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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 a resident
of the other Contracting State is the beneficial owner of the
dividends the tax so charged shall not exceed:
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(a) 5 per cent of the gross amount of the dividends if the
beneficial owner is a company which controls directly or
indirectly at least 10 per cent of the voting power in the
company paying the dividends;
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(b) 15 per cent of the gross amount of the dividends in all other
cases.
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This paragraph shall not affect the taxation of the company in
respect of the profits out of which the dividends are paid.
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3. The term ``dividends'' as used in this Article means income
from shares, ``jouissance'' shares or ``jouissance'' rights, mining
shares, founders' shares or other rights, not being debt-claims,
participating in profits, as well as income which is subjected to
the same taxation treatment as income from shares by the laws of
the State of which the company making the distribution is a
resident.
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4. The provisions of paragraph 2 shall not apply if the
beneficial owner of the dividends, being a resident of a
Contracting State, carries on business in the other Contracting
State of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other State independent personal services from a fixed
base situated therein, and the holding in respect of which the
dividends are paid is effectively connected with such permanent
establishment or fixed base. In such case the provisions of Article
7 or Article 14, as the case may be, shall apply.
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5. Where a company which is a resident of a Contracting State
derives profits or income from the other Contracting State, that
other State may not impose any tax on the dividends paid by the
company, except insofar as such dividends are paid to a resident
of that other State or insofar as the holding in respect of which the
dividends are paid is effectively connected with a permanent
establishment or a fixed base situated in that other State, nor
subject the company's undistributed profits to a tax on the
company's undistributed profits, even if the dividends paid or the
undistributed profits consist wholly or partly of profits or income
arising in such other State.
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6. Nothing in this Convention shall be construed as preventing
a Contracting State from imposing on the earnings of a company
attributable to a permanent establishment in that State, a tax in
addition to the tax which would be chargeable on the earnings of
a company which is a national of that State, provided that any
additional tax so imposed shall not exceed 5 per cent of the
amount of such earnings which have not been subjected to such
additional tax in previous taxation years. For the purpose of this
provision, the term ``earnings'' means the profits, including any
gains, attributable to a permanent establishment in a Contracting
State in a year and previous years after deducting therefrom all
taxes, other than the additional tax referred to herein, imposed on
such profits by that State.
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7. The provisions of paragraph 6 shall also apply with respect
to earnings derived from the alienation of immovable property in
one of the States by a company carrying on a trade in immovable
property, whether or not it has a permanent establishment in that
State, but only insofar as these earnings may be taxed in that State
under the provisions of Article 6 or paragraph 1 of Article 13.
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1. Interest arising in a Contracting State and paid to a resident
of the other Contracting State may be taxed in that other State.
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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 a resident of the other Contracting State is the beneficial owner
of the interest the tax so charged shall not exceed 10 per cent of
the gross amount of the interest.
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3. Notwithstanding the provisions of paragraph 2:
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(a) interest arising in a Contracting State and paid in respect
of indebtedness of the government of that State or of a local
authority thereof shall, provided that the interest is
beneficially owned by a resident of the other Contracting
State, be taxable only in that other State;
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(b) interest arising in Canada and paid to a resident of
Uzbekistan shall be taxable only in Uzbekistan if it is paid in
respect of a loan made, guaranteed or insured, or a credit
extended, guaranteed or insured by the Central Bank of the
Republic of Uzbekistan; and
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(c) interest arising in Uzbekistan and paid to a resident of
Canada shall be taxable only in Canada if it is paid in respect
of a loan made, guaranteed or insured, or a credit extended,
guaranteed or insured by the Export Development
Corporation of Canada.
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4. The term ``interest'' as used in this Article means income
from debt-claims of every kind, whether or not secured by
mortgage, and in particular, income from government securities
and income from bonds or debentures, including premiums and
prizes attaching to such securities, bonds or debentures, as well
as income which is subjected to the same taxation treatment as
income from money lent by the laws of the State in which the
income arises. However, the term ``interest'' does not include
income dealt with in Article 10. Penalty charges for late payment
shall not be regarded as interest for the purpose of this Article.
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5. The provisions of paragraph 2 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which
the interest arises, through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with
such permanent establishment or fixed base. In such case the
provisions of Article 7 or Article 14, as the case may be, shall
apply.
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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.
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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.
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8. The provisions of this Article shall not apply if it was the
main purpose or one of the main purposes of any person
concerned with the creation or assignment of the debt-claim in
respect of which the interest is paid to take advantage of this
Article by means of that creation or assignment.
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1. Royalties arising in a Contracting State and paid to a
resident of the other Contracting State may be taxed in that other
State.
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2. However, such royalties may also be taxed in the
Contracting State in which they arise and according to the laws
of that State, but if a resident of the other Contracting State is the
beneficial owner of the royalties the tax so charged shall not
exceed:
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(a) 5 per cent of the gross amount of the royalties if they are:
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(i) copyright royalties and other like payments in respect of
the production or reproduction of any literary, dramatic,
musical or artistic work (but not including royalties in
respect of motion picture films nor royalties in respect of
works on film or videotape or other means of reproduction
for use in connection with television broadcasting), or
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(ii) royalties for the use of, or the right to use, computer
software or any patent or for information concerning
industrial, commercial or scientific experience
(know-how) (but not including any such information
provided in connection with a rental or franchise
agreement);
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(b) 10 per cent of the gross amount of the royalties in all other
cases.
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3. The term ``royalties'' as used in this Article means payments
of any kind received as a consideration for the use of, or the right
to use, any copyright, patent, trade mark, design or model, plan,
secret formula or process or other intangible property, or for the
use of, or the right to use, industrial, commercial or scientific
equipment, or for information concerning industrial, commercial
or scientific experience (know-how), and includes payments of
any kind in respect of motion picture films and works on film,
videotape or other means of reproduction for use in connection
with television.
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4. The provisions of paragraph 2 shall not apply if the
beneficial owner of the royalties, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the royalties arise, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the right or property in respect of which the royalties are paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14,
as the case may be, shall apply.
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5. Royalties shall be deemed to arise in a Contracting State
when the payer is a resident of that State. Where, however, the
person paying the royalties, whether he is a resident of a
Contracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the
obligation to pay the royalties was incurred, and such royalties
are borne by such permanent establishment or fixed base, then
such royalties shall be deemed to arise in the State in which the
permanent establishment or fixed base is situated.
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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.
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7. The provisions of this Article shall not apply if it was the
main purpose or one of the main purposes of any person
concerned with the creation or assignment of the rights in respect
of which the royalties are paid to take advantage of this Article
by means of that creation or assignment.
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1. Gains derived by a resident of a Contracting State from the
alienation of immovable property situated in the other
Contracting State may be taxed in that other State.
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2. Gains from the alienation of movable property forming part
of the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or of movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services,
including such gains from the alienation of such a permanent
establishment (alone or with the whole enterprise) or of such a
fixed base, may be taxed in that other State.
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3. Gains derived by an enterprise of a Contracting State from
the alienation of ships or aircraft operated in international traffic
or movable property pertaining to the operation of such ships or
aircraft, shall be taxable only in that State.
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4. Gains derived by a resident of a Contracting State from the
alienation of:
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(a) shares (other than shares listed on an approved stock
exchange in the other Contracting State) forming part of a
substantial interest in the capital stock of a company the value
of which shares is derived principally from immovable
property situated in the other Contracting State, or
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(b) a substantial interest in a partnership, trust or estate,
established under the law in a Contracting State, the value of
which is derived principally from immovable property
situated in the other Contracting State,
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may be taxed in that other State. For the purposes of this
paragraph, the term ``immovable property'' includes the shares
of a company referred to in subparagraph (a) or an interest in a
partnership, trust or estate referred to in subparagraph (b) but
does not include any property, other than rental property, in
which the business of the company, partnership, trust or estate is
carried on; and a substantial interest exists when the resident or
persons related thereto own 25 per cent or more of the shares of
any class of the capital stock of a company or have an interest of
25 per cent or more in a partnership, trust or estate.
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5. Gains from the alienation of any property, other than that
referred to in paragraphs 1, 2, 3 and 4 shall be taxable only in the
Contracting State of which the alienator is a resident.
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6. The provisions of paragraph 5 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 the six years
immediately preceding the alienation of the property.
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1. Income derived by an individual who is a resident of a
Contracting State in respect of professional services or other
activities of an independent character shall be taxable only in that
State 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 or had 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.
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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.
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1. Subject to the provisions of Articles 16, 18 and 19, salaries,
wages and other 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.
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2. Notwithstanding the provisions of paragraph 1,
remuneration derived by a resident of a Contracting State in
respect of an employment exercised in the other Contracting
State shall be taxable only in the first-mentioned State if:
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(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 calendar year
concerned; and
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(b) the remuneration is paid by, or on behalf of, an employer
who is not a resident of the other State; and
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(c) the remuneration is not borne by a permanent
establishment or a fixed base which the employer has in the
other State.
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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 State.
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Directors' fees and other similar payments derived by a
resident of a Contracting State in his capacity as a member of the
board of directors or a similar organ of a company which is a
resident of the other Contracting State, may be taxed in that other
State.
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1. Notwithstanding the provisions of Articles 14 and 15,
income derived by a resident of a Contracting State as an
entertainer, such as a theatre, motion picture, radio or television
artiste, or a musician, or as a sportsman, from his personal
activities as such exercised in the other Contracting State, may be
taxed in that other State.
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2. Where income in respect of personal activities exercised by
an entertainer or a sportsman in his capacity as such accrues not
to the entertainer or sportsman himself but to another person, that
income may, notwithstanding the provisions of Articles 7, 14 and
15, be taxed in the Contracting State in which the activities of the
entertainer or sportsman are exercised.
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3. The provisions of paragraphs 1 and 2 shall not apply to
income derived from activities performed in a Contracting State
by artistes or sportsmen if the visit to that State is wholly or
substantially supported by public funds of one or both of the
Contracting States or of local authorities thereof. In such a case,
the income is taxable only in the Contracting State of which the
artiste or the sportsman is a resident.
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Pensions and other similar payments of any kind arising in a
Contracting State and paid to a resident of the other Contracting
State shall be taxable only in the first-mentioned State.
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1. (a) Salaries, wages and similar 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.
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(b) However, such salaries, wages and 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:
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(i) is a national of that State, or
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(ii) did not become a resident of that State solely for the
purpose of rendering the services.
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2. The provisions of Articles 15, 16 and 17 shall apply to
remuneration in respect of services rendered in connection with
a business carried on by a Contracting State or a local authority
thereof.
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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 that State, provided that such
payments arise from sources outside that State.
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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.
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2. The provisions of paragraph 1 shall not apply to income,
other than income from immovable property, if the recipient of
such income, being a resident of a Contracting State, carries on
business in the other Contracting State through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the right or property in respect of which the income is paid
is effectively connected with such permanent establishment or
fixed base. In such case the provisions of Article 7 or Article 14,
as the case may be, shall apply.
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3. Notwithstanding the provisions of paragraphs 1 and 2, if
such income is derived by a resident of a Contracting State from
sources in the other Contracting State, such income may also be
taxed in the State in which it arises and according to the law of
that State.
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1. Capital represented by immovable property owned by a
resident of a Contracting State and situated in the other
Contracting State, may be taxed in that other State.
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2. Capital represented by movable property forming part of
the business property of a permanent establishment which an
enterprise of a Contracting State has in the other Contracting
State or by movable property pertaining to a fixed base available
to a resident of a Contracting State in the other Contracting State
for the purpose of performing independent personal services,
may be taxed in that other State.
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3. Capital represented by ships and aircraft operated by an
enterprise of a Contracting State in international traffic and by
movable property pertaining to the operation of such ships and
aircraft, shall be taxable only in that State.
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4. All other elements of capital of a resident of a Contracting
State shall be taxable only in that State.
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1. In the case of Canada, double taxation shall be avoided as
follows:
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(a) subject to the existing provisions of the law of Canada
regarding the deduction from tax payable in Canada of tax
paid in a territory outside Canada and to any subsequent
modification of those provisions - which shall not affect the
general principle hereof - and unless a greater deduction or
relief is provided under the laws of Canada, tax payable in
Uzbekistan on profits, income or gains arising in Uzbekistan
shall be deducted from any Canadian tax payable in respect of
such profits, income or gains;
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(b) subject to the existing provisions of the law of Canada
regarding the taxation of income from a foreign affiliate and
to any subsequent modification of those provisions - which
shall not affect the general principle hereof - for the purpose
of computing Canadian tax, a company which is a resident of
Canada shall be allowed to deduct in computing its taxable
income any dividend received by it out of the exempt surplus
of a foreign affiliate which is a resident of Uzbekistan;
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(c) where in accordance with any provision of this Convention
income derived or capital owned by a resident of Canada is
exempt from tax in Canada, Canada may nevertheless, in
calculating the amount of tax on other income or capital, take
into account the exempted income or capital;
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(d) for the purposes of this paragraph, profits, income or gains
of a resident of a Canada which may be taxed in Uzbekistan
in accordance with this Convention shall be deemed to arise
from sources in Uzbekistan.
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2. In the case of Uzbekistan, double taxation shall be
eliminated as follows:
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(a) Where a resident of Uzbekistan derives income or owns
capital which, in accordance with the provisions of this
Convention may be taxed in Canada, Uzbekistan shall allow:
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(i) as a deduction from the tax on the income of that
resident, an amount equal to the income tax paid in Canada,
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(ii) as a deduction from the tax on the property of that
resident, an amount equal to the property tax paid in
Canada.
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Such deduction in either case shall not, however, exceed that
part of the income tax or property tax, as computed before the
deduction is given, which is attributable, as the case may be,
to the income or the capital which may be taxed in Canada.
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(b) Where in accordance with any provision of this
Convention income derived or capital owned by a resident of
Uzbekistan is exempt from tax in Uzbekistan, Uzbekistan may
nevertheless, in calculating the amount of tax on the
remaining income or capital of such resident, take into account
the exempted income or capital.
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(c) For the purpose of subparagraphs (a) and (b) of this
paragraph, profits, income and capital derived by a resident of
Uzbekistan which may be taxed in Canada in accordance with
this Convention shall be deemed to be derived from sources
in Canada.
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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 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 individuals who are not
residents of one or both of the Contracting States.
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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.
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3. Nothing in this Article shall be construed as obliging a
Contracting State to grant to residents of the other Contracting
State any personal allowances, reliefs and reductions for taxation
purposes on account of civil status or family responsibilities
which it grants to its own residents.
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4. Except where the provisions of paragraph 1 of Article 9,
paragraph 7 of Article 11, or paragraph 6 of Article 12, apply,
interest, royalties and other disbursements paid by an enterprise
of a Contracting State to a resident of the other Contracting State
shall, for the purpose of determining the taxable profits of such
enterprise, be deductible under the same conditions as if they had
been paid to a resident of the first-mentioned State. Similarly, any
debts of an enterprise of a Contracting State to a resident of the
other Contracting State shall, for the purpose of determining the
taxable capital of such enterprise, be deductible under the same
conditions as if they had been contracted to a resident of the
first-mentioned State.
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5. Enterprises of a Contracting State, the capital of which is
wholly or partly owned or controlled, directly or indirectly, by
one or more residents of the other Contracting State, shall not be
subjected in the first-mentioned State to any taxation or any
requirement connected therewith which is more burdensome
than the taxation and connected requirements to which other
similar enterprises of the first-mentioned State, the capital of
which is wholly or partly owned or controlled, directly or
indirectly, by one or more residents of a third State, are or may be
subjected.
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6. In this Article, the term ``taxation'' means taxes which are
the subject of this Convention.
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7. The provisions of paragraph 4 shall not affect the provisions
of the taxation laws of a Contracting State that are designed to
counter transactions or arrangements having as their objective
the avoidance of taxation.
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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, address to the competent authority of the
Contracting State of which he is a resident, or if his case comes
under paragraph 1 of Article 24, to that of the Contracting State
of which he is a national, an application in writing stating the
grounds for claiming the revision of such taxation. To be
admissible, the said application must be submitted within two
years from the first notification of the action which gives rise to
taxation not in accordance with the provisions of this
Convention.
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2. The competent authority referred to in paragraph 1 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
not in accordance with this Convention.
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3. A Contracting State shall not, after the expiry of the time
limits provided in its national laws and, in any case, after five
years from the end of the taxable period in which the income
concerned has accrued, increase the tax base of a resident of either
of the Contracting States by including therein items of income
which have also been charged to tax in the other Contracting
State. This paragraph shall not apply in the case of fraud, wilful
default or neglect.
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4. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of this
Convention.
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5. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in this Convention and may communicate with
each other directly for the purpose of reaching an agreement in
the sense of the preceding paragraphs.
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1. The competent authorities of the Contracting States shall
exchange such information as is relevant for carrying out the
provisions of this Convention or of the domestic laws of the
Contracting States concerning taxation insofar as such taxation
is not contrary to this Convention, in particular, to prevent fraud
and to facilitate the administration of statutory provisions against
legal avoidance. The exchange of information is not restricted by
Article 1. Any information received by a Contracting State shall
be treated as secret in the same manner as information obtained
under the domestic laws of that State and shall be disclosed only
to persons or authorities (including courts and administrative
bodies) involved in the assessment or collection of, the
enforcement or prosecution in respect of, or the determination of
appeals in relation to taxes. 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.
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2. In no case shall the provisions of paragraph 1 be construed
so as to impose on a Contracting State the obligation:
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(a) to carry out administrative measures at variance with the
laws and the administrative practice of that or of the other
Contracting State;
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(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;
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(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).
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3. If information is requested by a Contracting State in
accordance with this Article, the other Contracting State shall
endeavour to obtain the information to which the request relates
in the same way as if its own taxation was involved
notwithstanding the fact that the other State does not, at that time,
need such information. If specifically requested by the
competent authority of a Contracting State, the competent
authority of the other Contracting State shall endeavour to
provide information under this Article in the form requested,
such as depositions of witnesses and copies of unedited original
documents (including books, papers, statements, records,
accounts or writings), to the same extent such depositions and
documents can be obtained under the laws and administrative
practices of that other State with respect to its own taxes.
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1. Nothing in this Convention shall affect the fiscal privileges
of diplomatic agents or consular officers under the general rules
of international law or under the provisions of special
agreements.
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2. Notwithstanding Article 4, an individual who is a member
of a diplomatic mission, consular post or permanent mission of
a Contracting State which is situated in the other Contracting
State or in a third State shall be deemed for the purposes of this
Convention to be a resident of the sending State if he is liable in
the sending State to the same obligations in relation to tax on his
total income or capital as are residents of that sending State.
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3. This Convention shall not apply to international
organizations, to organs or officials thereof and to persons who
are members of a diplomatic mission, consular post or permanent
mission of a third State or group of States, being present in a
Contracting State and who are not liable in either Contracting
State to the same obligations in relation to tax on their total
income or capital as are residents thereof.
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The provisions of this Convention shall not be construed to
restrict in any manner any exemption, allowance, credit or other
deduction accorded by the laws of a Contracting State in the
determination of the tax imposed by that State.
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Each of the Contracting States shall notify to the other through
diplomatic channels the completion of the procedures required
by its 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:
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(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents on or after the first day of January of
the calendar year next following that in which this Convention
enters into force; and
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(b) in respect of other taxes for taxation years beginning on or
after the first day of January of the calendar year next
following that in which this Convention enters into force.
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This Convention shall remain in force until terminated by one
of the Contracting States. Either Contracting State may terminate
this Convention, through diplomatic channels, 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 this Convention. In such event, this Convention
shall cease to have effect:
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(a) in respect of tax withheld at the source on amounts paid or
credited to non-residents on or after the first day of January of
the calendar year next following that in which the notice is
given; and
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(b) in respect of other taxes for taxation years beginning on or
after the first day of January of the calendar year next
following that in which the notice is given.
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IN WITNESS WHEREOF the undersigned, duly authorised
thereto, have signed this Convention.
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DONE in duplicate at Ottawa, this 17th day of June 1999, in
the English, French and Uzbek languages, each version being
equally authentic.
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FOR THE GOVERNMENT FOR THE
GOVERNMENT OF CANADA: OF THE REPUBLIC
OF UZBEKISTAN: Julian Reed So
dyq Safaev
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At the signing of the Convention between the Government of
Canada and the Government of the Republic of Uzbekistan for
the avoidance of double taxation and the prevention of fiscal
evasion with respect to taxes on income and on capital, the
undersigned have agreed on the following provisions which
shall form an integral part of the Convention.
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1. With reference to paragraph 1 of Article 4, it is understood
that for the purposes of the application of this Convention to:
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(a) income taxes, the term ``liable to tax'' refers to liability to
taxes on income and not to taxes on property;
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(b) property taxes, the term ``liable to tax'' refers to liability to
taxes on property and not to taxes on income.
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2. Paragraphs 4 and 7 of Article 24 of this Convention shall,
notwithstanding the provisions of Article 29 of this Convention,
take effect only from the date specified in an exchange of letters
between the competent authorities of the Contracting States.
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3. With reference to this Convention, it is understood that the
terms ``State or a local authority'' or ``State or of a local
authority'' includes, in the case of Canada, the political
subdivisions in Canada.
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4. Nothing in this Convention shall be construed as preventing
a Contracting State from imposing a tax on amounts included in
the income of a resident of that State with respect to a partnership,
trust, or controlled foreign affiliate, in which he has an interest.
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5. This Convention shall not apply to any company (nor to
income derived from such company by a shareholder thereof),
trust or partnership that is a resident of a Contracting State and is
beneficially owned or controlled directly or indirectly by one or
more persons who are not residents of that State, if the amount of
the tax imposed on the income or capital of the company, trust or
partnership by that State is substantially lower than the amount
that would be imposed by that State if all of the shares of the
capital stock of the company or all of the interests in the trust or
partnership, as the case may be, were beneficially owned by one
or more individuals who were residents of that State.
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6. In the event that the Republic of Uzbekistan becomes a
member of the General Agreement on Trade in Services, the
following provision shall take effect from the date the Republic
of Uzbekistan becomes such a member:
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For purposes of paragraph 3 of Article XXII (Consultation) of
the General Agreement on Trade in Services, the Contracting
States agree that, notwithstanding that paragraph, any dispute
between them as to whether a measure falls within the scope of
this Convention may be brought before the Council for Trade in
Services, as provided by that paragraph, only with the consent of
both Contracting States. Any doubt as to the interpretation of this
paragraph shall be resolved under paragraph 4 of Article 25 of
this Convention or, failing agreement under that procedure,
pursuant to any other procedure agreed to by both Contracting
States.
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IN WITNESS WHEREOF the undersigned, duly authorised
thereto, have signed this Protocol.
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DONE in duplicate at Ottawa, this 17th day of June 1999, in
the English, French and Uzbek languages, each version being
equally authentic.
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FOR THE GOVERNMENT FOR THE
GOVERNMENT OF CANADA: OF THE REPUBLIC
OF UZBEKISTAN: Julian Reed So
dyq Safaev
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