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The Government of Canada and the Government of the
Republic of Slovenia, 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 Slovenia
or of its political subdivisions or 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, as well as taxes on
capital appreciation.
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3. The existing taxes to which the Convention shall apply are:
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(a) in the case of Canada:
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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 Slovenia:
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(i) the tax on profits of legal persons;
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(ii) the tax on income of individuals, including wages and
salaries, income from agricultural activities, income from
business and income from immovable and movable
property;
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(hereinafter referred to as ``Slovenian tax'').
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4. The Convention shall also apply to any identical or
substantially similar taxes which are imposed after the date of
signature of the Convention in addition to, or in place of, the
taxes mentioned in paragraph 3. The competent authorities of the
Contracting States shall notify each other of any important
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
subparagraph (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 ``Slovenia'' means the Republic of Slovenia and,
when used in a geographical sense, the territory of the
Republic of Slovenia, including the sea area, the seabed and
subsoil adjacent to the territorial sea of the Republic of
Slovenia, if the Republic of Slovenia may exercise its
sovereign rights and jurisdiction in accordance with its
domestic legislation and international law;
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(c) the terms ``a Contracting State'' and ``the other Contracting
State'' mean, as the context requires, Canada or Slovenia;
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(d) the terms ``enterprise of a Contracting State'' and
``enterprise of the other Contracting State'' means
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, a company and
any other body of persons and, in the case of Canada, the term
also includes a trust;
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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 the Minister's authorized representative;
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(ii) in the case of Slovenia, the Ministry of Finance of the
Republic of Slovenia or its 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'' 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.
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2. As regards the application of the Convention at any time by
a Contracting State, any term not defined therein shall, unless the
context otherwise requires, have the meaning which it has at that
time under the law of that State for the purposes of the taxes to
which the Convention applies.
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1. For the purposes of this Convention, the term ``resident of
a Contracting State'' means:
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(a) any person who, under the laws of that State, is liable to tax
therein by reason of the person's domicile, residence, place of
management, place of incorporation or any other criterion of
a similar nature;
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(b) that State or a political subdivi-sion or local authority
thereof or any agency or instrumentality of any such State,
subdivision 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 the
individual's status shall be determined as follows:
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(a) the individual shall be deemed to be a resident only of the
State in which the individual has a permanent home available;
if the individual has a permanent home available in both
States, the individual shall be deemed to be a resident only of
the State with which the individual's personal and economic
relations are closer (centre of vital interests);
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(b) if the State in which the individual has his centre of vital
interests cannot be determined, or if there is not a permanent
home available to the individual in either State, the individual
shall be deemed to be a resident only of the State in which the
individual has an habitual abode;
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(c) if the individual has an habitual abode in both States or in
neither of them, the individual shall be deemed to be a resident
only of the State of which the individual is a national;
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(d) if the individual 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, it shall be
deemed to be a resident only of the State of which it is a national.
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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 the Convention to
such person.
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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. The term ``permanent establishment'' shall likewise
encompass:
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(a) a building site, a construction, assembly or installation
project or supervisory activities in connection therewith, but
only where such site, project or activities continue for a period
of more than twelve months;
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(b) the furnishing of services, including consultancy services,
by an enterprise of a Contracting State through its employees
or other personnel in the other Contracting State, but only
where such activities (for the same or related projects)
continue with or without interruptions for a period exceeding
nine months within any twelve month period.
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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 advertising, for the supply of information, for
scientific research, or for similar activities of a preparatory or
auxiliary character for the enterprise;
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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 in the name of the
enterprise, that enterprise shall be deemed to have a permanent
establishment in that State in respect of any activities which that
person undertakes for the enterprise, unless the activities of such
person are limited to those mentioned in paragraph 4 which, if
exercised through a fixed place of business, would not make this
fixed place of business a permanent establishment under the
provisions of that paragraph.
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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 other 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 relevant 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.
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3. In determining the profits of a permanent establishment,
there shall be allowed those deductible expenses which are
incurred for the purposes of the permanent establishment,
including executive and general administrative expenses,
whether incurred in the State in which the permanent
establishment is situated or elsewhere.
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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 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.
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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. 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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4. In this Article, the term ``operation of ships or aircraft in
international traffic'' by an enterprise, includes the charter or
rental of ships or aircraft, and the rental of containers and related
equipment, by that enterprise provided that such charter or rental
is incidental to the operation by that enterprise of ships or aircraft
in international traffic.
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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 the
expiry of the time limits provided in its national laws and, in any
case, after six years from the end of the year in which the profits
which would be subject to such change would, but for the
conditions referred to in paragraph 1, 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, wilful default or neglect.
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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) except in the case of dividends paid by a
non-resident-owned investment corporation that is a resident
of Canada, 5 per cent of the gross amount of the dividends if
the beneficial owner is a company that:
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(i) controls directly or indirectly at least 10 per cent of the
voting power in the company paying the dividends where
that company is a resident of Canada;
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(ii) holds directly at least 25 per cent of the capital of the
company paying the dividends where that company is a
resident of Slovenia;
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(b) 15 per cent of the gross amount of the dividends in all other
cases.
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The provisions of this paragraph shall not affect the taxation of
the company in respect of the profits out of which the dividends
are paid.
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3. The term ``dividends'' as used in this Article means income
from shares or other rights, not being debt-claims, participating
in profits, as well as income 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
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 Contracting 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 by 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 political
subdivision or 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 Slovenia 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;
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(c) interest arising in Canada and paid to a resident of Slovenia
shall be taxable only in Slovenia if it is paid in respect of a loan
made, guaranteed or insured, or a credit extended, guaranteed
or insured by the Slovenian Export Company (Slovenska
izvozna druzba); and
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(d) interest arising in a Contracting State and paid to a resident
of the other Contracting State which was constituted and is
operated exclusively to administer or provide benefits under
one or more pension, retirement or other employee benefits
plans shall not be taxable in the first-mentioned State provided
that:
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(i) the resident is the beneficial owner of the interest and is
generally exempt from tax in the other State; and
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(ii) the interest is not derived from carrying on a trade or a
business or from a related person.
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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 purposes of this Article.
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5. The provisions of paragraphs 2 and 3 shall not apply if the
beneficial owner of the interest, being a resident of a Contracting
State, carries on business in the other Contracting State in which
the interest arises through a permanent establishment situated
therein, or performs in that other State independent personal
services from a fixed base situated therein, and the debt-claim in
respect of which the interest is paid is effectively connected with
such permanent establishment or fixed base. In such 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 the payer 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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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 10 per cent of the gross amount of the royalties.
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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 of literary, artistic or scientific work
including payments of any kind in respect of motion picture films
and works on film, videotape, tape or other means of
reproduction for use in connection with television or radio, for
the use of, or the right to use any 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.
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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 the payer 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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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 Contracting 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 Contracting State.
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3. Gains from the alienation of ships or aircraft operated, or
containers used, 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.
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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 that other State; or
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(b) a substantial interest in a partnership, trust or estate, the
value of which is derived principally from immovable
property situated in that other 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.
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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 if the gains accrued while
the individual was a resident of the first-mentioned State.
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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 the individual has a fixed base regularly available in
the other Contracting State for the purpose of performing the
activities. If the individual 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, a person 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 person 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 that resident's 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.
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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 sportsperson, from that resident's
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 sportsperson in that individual's capacity as
such accrues not to the entertainer or sportsperson personally but
to another person, that income may, notwithstanding the
provisions of Articles 7, 14 and 15, be taxed in the Contracting
State in which the activities of the entertainer or sportsperson are
exercised.
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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 a resident of the other Contracting State in the context of a visit
in the first-mentioned State of a non-profit organization of the
other State, provided the visit is substantially supported by
public funds.
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1. Pensions and annuities arising in a Contracting State and
paid to a resident of the other Contracting State may be taxed in
that other State.
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2. Pensions arising in Canada and paid to a resident of
Slovenia may also be taxed in Canada and according to the law
of Canada. However, in the case of periodic pension payments,
other than social security benefits, the tax so charged shall not
exceed the lesser of:
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(a) 15 per cent of the gross amount of the pension payments
that exceed in the aggregate twelve thousand Canadian dollars
in any taxation year; and
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(b) the rate determined by reference to the amount of tax that
the recipient of the payment would otherwise be required to
pay for the year on the total amount of the periodic pension
payments received by him in the year, if he were resident in
Canada.
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3. Notwithstanding the provisions of paragraph 1, pensions
paid by, or out of funds created by, the Government of Slovenia
or a political subdivision or a local authority thereof to an
individual who is a resident of Canada shall be taxable only in
Slovenia.
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4. Annuities arising in a Contracting State and paid to a
resident of the other Contracting State may also be taxed in the
State in which they arise and according to the law of that State;
but the tax so charged shall not exceed 10 per cent of the portion
thereof that is subject to tax in that State. However, this limitation
does not apply to lump-sum payments arising on the surrender,
cancellation, redemption, sale or other alienation of an annuity,
or to payments of any kind under an annuity contract the cost of
which was deductible, in whole or in part, in computing the
income of any person who acquired the contract.
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5. Alimony and other similar payments arising in a
Contracting State and paid to a resident of the other Contracting
State who is subject to tax therein in respect thereof, shall be
taxable only in that other State.
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1. (a) Salaries, wages and 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 shall
be taxable only in that State.
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(b) However, such salaries, wages or 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 paragraph 1 shall not apply to salaries,
wages and similar remuneration 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.
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Payments which a student, apprentice or business trainee who
is, or was immediately before visiting a Contracting State, a
resident of the other Contracting State and who is present in the
first-mentioned State solely for the purpose of that individual's
education or training receives for the purpose of that individual's
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. Subject to the provisions of paragraph 2, items of income
of a resident of a Contracting State, wherever arising, not dealt
with in the foregoing Articles of this Convention shall be taxable
only in that State.
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2. However, 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. Where such income is income
from an estate or a trust, other than a trust to which contributions
were deductible, the tax so charged shall, provided that the
income is taxable in the Contracting State in which the beneficial
owner is a resident, not exceed 15 per cent of the gross amount
of the income.
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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
Slovenia on profits, income or gains arising in Slovenia 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 Slovenia;
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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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2. In the case of Slovenia, double taxation shall be avoided as
follows:
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(a) where a resident of Slovenia derives income or owns
capital which, in accordance with the provisions of this
Convention, may be taxed in Canada, Slovenia 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 capital of that resident,
an amount equal to the capital tax paid in Canada;
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such deduction shall in no case exceed that portion of the
income tax or capital tax which has been computed before
making the deduction which is attributable to the income or
capital, as the case may be, 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
Slovenia is exempt from tax in Slovenia, Slovenia 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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3. For the purposes of this Article, profits, income or gains of
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 State.
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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 other or more burdensome than the
taxation and connected requirements to which nationals of that
other State in the same circumstances are or may be subjected.
This provision shall, notwithstanding the provisions of Article 1,
also apply to 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. The provisions of paragraph 4 shall not affect the operation
of any provision of the taxation laws of a Contracting State:
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(a) relating to the deductibility of interest and which is in force
on the date of signature of the Convention (including any
subsequent modification of such provisions that does not
change the general nature thereof); or
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(b) adopted after such date by a Contracting State and which
is designed to ensure that a person who is not a resident of that
State does not enjoy, under the laws of that State, a tax
treatment that is more favourable than that enjoyed by
residents of that State.
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6. The provisions of this Article shall apply to taxes covered
by the Convention.
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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 that person in
taxation not in accordance with the provisions of this
Convention, that person may, irrespective of the remedies
provided by the domestic law of those States, submit the case in
writing to the competent authority of the Contracting State of
which that person is a resident. The case must be submitted
within two years from the first notification of the action resulting
in taxation not in accordance with the provisions of this
Convention.
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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 Convention
with the competent authority of the other Contracting State, with
a view to the avoidance of taxation which is not in accordance
with this Convention.
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3. The competent authorities of the Contracting States shall
endeavour to resolve by mutual agreement any difficulties or
doubts arising as to the interpretation or application of the
Convention.
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4. The competent authorities of the Contracting States may
consult together for the elimination of double taxation in cases
not provided for in the Convention and may communicate with
each other directly for the purpose of applying the Convention.
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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 taxes covered by the Convention
insofar as the taxation thereunder is not contrary to the
Convention, and for the prevention of fiscal evasion. The
exchange of information is not restricted by Article 1. Any
information received by a Contracting State shall be treated as
secret and shall be disclosed only to persons or authorities
(including courts and administrative bodies) involved in the
assessment or collection of, the enforcement 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. Nothing in paragraph 1 shall 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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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 Conventions.
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1. It is understood, that 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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2. Nothing in the Convention shall be construed as preventing
a Contracting State from imposing a tax on amounts included in
the income of a resident of a Contracting State with respect to a
partnership, trust, or controlled foreign company, in which the
resident has an interest.
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3. The Convention shall not apply to any company, 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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4. Contributions in a year in respect of services rendered in that
year paid by, or on behalf of, an individual who is resident of one
of the Contracting States or who is temporarily present in that
State, to a pension plan that is recognized for tax purposes in the
other Contracting State shall, during a period not exceeding in
the aggregate 60 months, be treated in the same way for tax
purposes in the first-mentioned State as a contribution paid to a
pension plan that is recognized for tax purposes in that
first-mentioned State, provided that:
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(a) such individual was contributing on a regular basis to the
pension plan for a period ending immediately before that
individual became a resident of or temporarily present in the
first-mentioned State; and
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(b) the competent authority of the first-mentioned State agrees
that the pension plan generally corresponds to a pension plan
recognized for tax purposes by that State.
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For the purposes of this paragraph, ``pension plan'' includes a
pension plan created under the social security system in a
Contracting State.
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5. For purposes of paragraph 3 of Article XXII (Consultation)
of the General Convention 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 3 of Article 25 or,
failing agreement under that procedure, pursuant to any other
procedure agreed to by both Contracting States.
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1. This Convention shall be ratified and the instruments of
ratification shall be exchanged as soon as possible.
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2. The Convention shall enter into force 60 days after the
exchange of the instruments of ratification and its provisions
shall 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 in
the calendar year next following that in which the exchange of
instruments of ratification takes place; and
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(b) in respect of other taxes for taxation years beginning on or
after the first day of January in the calendar year next
following that in which the exchange of instruments of
ratification takes place.
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This Convention shall continue in effect indefinitely but either
Contracting State may, on or before June 30 of any calendar year
after the fifth year from the date of entry into force of the
Convention, give to the other Contracting State a notice of
termination in writing through diplomatic channels; in such
event, the 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 next following calendar year; 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 next following calendar
year.
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IN WITNESS WHEREOF the undersigned, duly authorized
to that effect, have signed this Convention.
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DONE in duplicate at Ljubljana, this 15th day of September
2000, in the English, French and Slovenian languages, each
version being equally authentic.
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FOR THE GOVERNMENT FOR THE GOVERNMENT
OF CANADA OF THE REPUBLIC OF SLOVENIA
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Pierre Pettigrew Zvonko Ivanusic
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