Lithuania - United Arab Emirates Tax Treaty

AGREEMENT

BETWEEN GOVERNMENT OF THE REPUBLIC OF LITHUANIA AND

THE GOVERNMENT OF THE UNITED ARAB EMIRATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

The Government of the Republic of Lithuania and the Government of the United Arab Emirates,

Desiring to promote their mutual economic relations through the conclusion between them of an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income,

Have agreed as follows:

Article 1

Persons covered

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

Contracting States.

Article 2 Taxes Covered

This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the

manner in which they are levied.

There shall be regarded as taxes on income all taxes imposed on total income, or on elements of income, including taxes on gains from the alienation of movable or immovable property.
The existing taxes to which this Agreement shall apply are, in particular: a) in the case of Lithuania: (i) the profit tax;

(ii) the income tax:

a) (hereinafter referred to as "Lithuanian tax"); b) in the case of the United Arab Emirates :

(i) the income tax;

(ii) the corporate tax;

(iii) hereinafter referred to as “UAE tax”).

This Agreement shall apply also to any identical or substantially similar faxes that are imposed after the date of signature of the Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes that have been made in their taxation laws.

Article 3

General definitions

I. For ihe purposes of this Agreement, unless the context otherwise requires: a) the terms “ a Contracting State” and “ the other Contracting State” mean

Lithuania or United Arab Emirates as the context requires:

b) the term "Lithuania" means the Republic of Lithuania and, when used in the geographical sense, means the territory under its sovereignty and other areas over which the Republic of Lithuania exercises sovereign rights or jurisdiction in accordance with international law;

c) the term “ United Arab Emirates” when used in a geographical sense, means the territory of the United Arab Emirates which is under its sovereignty as well as the area outside the territorial water, airspace and submarine areas over which the United Arab Emirates exercises, sovereign and jurisdictional rights in respect of any activity carried on in its water, sea bed, sub-soil, in connection with the exploration for or the exploitation of natural resources by virtue of its law and international law;

d) the term "person" includes an individual, a company and any other body of persons:

e) the term “national” means:

(i) any individual possessing the nationality of a contracting State:

(i) any legal person, partnership or association or other entity deriving its status as such from the laws in force in a Contracting State or of a political subdivision or a local government thereof :

a) the term “company”™ means anybody corporate or any entity that is treated as

a body corporate for tax purposes;

b) 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:

c) 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;

d) the term “tax” means Lithuanian tax or UAE tax , as the context requires;

e) the term “competent authority” means:

(i) in the case of Lithuania, the Minister of Finance or his authorized representative;

(ii) in the case of the United Arab Emirates: the Minister of Finance or

an authorized representative of the Minister of Finance.

As regards the application of the Agreement at any time by a Contracting

State, any term not defined therein shall, unless the context otherwise requires, have the

meaning that it has at that time under the law of that State for the purposes of the taxes to

which the Agreement applies, any meaning under the applicable tax laws of that State

prevailing over a meaning given to the term under other laws of that State.

State” means:

also includes:

Article 4 Resident

For the purposes of this Agreement , the term “resident of a Contracting

in the case of Lithuania, any person who, under the laws of Lithuania, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar naiure, and also incluces Lithuania and any local authority thereof. This term, however, does not include any person who is liable to tax in Lithuania in respect only of income from sources in Lithuania or capital situated therein;

in the case of the United Arab Emirates ;

(i) an individual who under the laws of the United Arab Emirates is considered a resident thereof by reason of his domicile, residence or any other criterion of a similar nature;

(ii) a company which is established under the law of the United Arab

Emirates.

For the purposes of paragraph 1, the term "resident of a Contracting State"

that State, any local government, local authority thereof;

a pension fund that is recognized and controlled according to the statutory provisions of a Contracting State and the income of which is generally exempt from tax in that State;

a governmental institution of a Contracting State. Any institution shall be deemed to be a governmental institution which has been created, wholly owned and controlled by the Government of one of the Contracting States or of its local governments and which is recognized as such by mutual

agreement of the competent authorities of the Contracting States.

Where by reason of the provisions of paragraph | an individual is a resident

of both Contracting States, then his status shall be determined as follows:

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

b) if the State in which he has his center of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;

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

d) if his status cannot be determined under the provisions of subparagraph c), the competent authorities of the Contracting States shall settle the question by mutual agreement.

Where by reason of the provisions of paragraph | a person other than an

individual is a resident of both Contracting States, the competent authorities of the

Contracting States shall determine by mutual agreement the Contracting State of which

such person shall be deemed to be a resident for the purposes of the Agreement.

Article 5

Permanent Establishment

For the purposes of this Agreement, the term “permanent establishment”

means a fixed place of business through which the business of an enterprise is wholly or

partly carried on,

The term “ permanent establishment’ includes especially: a place of management,

a branch;

an office;

a factory;

a workshop, and

f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources,

A building site, construction, assembly or installation project constitutes a

permanent establishment only if such site or project continues for a period of more than 9

months.

4, The furnishing of services, including consultancy or managerial services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for such purpose in the other Contracting State constitutes a permanent establishment only if activities of that nature continue for a period or periods exceeding in the apgregate 183 days in any twelve month period commencing or ending in the fiscal

year concerned,

Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:

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

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

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

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

e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;

f} the maintenance of a fixed place of business solely fer 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.

Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 7 applies - is acting on behalf of an enterprise and has, and habitually exercises, in a 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 5 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the

provisions of that paragraph.

An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. However, when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will not

be considered an agent of an independent status within the meaning of this paragraph.

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 ilself constitute either company a permanent establishment of the other.

Article 6 Income from Immovable Property

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.

The term "Immovable property" shall have the meaning, which it has under the national laws 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 laws respecting landed property apply, any option or similar right to acquire immovable property, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right of work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.

The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other term of immovable property, as well as income from the

alienation of immovable property.

Where the ownership of shares or other corporate rights in a company entitles the owner of such shares or corporate rights to the enjoyment of immovable property held by the company, the income from the direct use, letting, or use in any other form of such right to the enjoyment may be taxed in the Contracting State in which the immovable

properly is situated,

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

performance of independent personal services.

Article 7

Business Profits

1, The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2, Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that

permanent establishment the profits which it might be expected to make if it were a distinct

and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent

establishment.

In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere, The expenses to be allowed as deductions by a Contracting State shall include only expenses

that are deductible under the domestic laws of that State.

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,

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.

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.

Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected

by the provisions of this Article.

Artiele 8 Shipping and Air Transport

Profits of an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State.
For the purposes of this Article profits from the operation of ships or aircraft

in international traffic include:

a) profits from the rental on a bareboat basis of ships or aircraft; b) profits from the use, maintenance or rental of containers, including trailers

and related equipment for the transport of containers, used for the transport of goods or merchandise, where such rental or such use, maintenance or rental, as the case may be, is

incidental to the operation of ships or aircraft by the enterprise in international traffic.

The provisions of paragraph | shall also apply fo profits from the

participation in the pool, a joint business or an international operating agency.

Article 9

Associated Enterprises

1, Where a) an enterprise of a Contracting State participates directly or indirectly in the management, conirol or capital of an enterprise of the other Contracting State, or bd) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so

accrued, may be included in the profits of that enterprise and taxed accordingly.

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 Contracting State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State may make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the

competent authorities of the Contracting States shall, if necessary, consult each other.

Article 10

Dividends

Dividends paid by a company which is a resident of a Contracting State, to a

resident of the other Contracting State may be taxed in that other Contracting State.

However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

a) G per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 10 per cent of the capital of the company paying the dividends:

b) 5 per cent of the gross amount of the dividends in all other cases,

This paragraph shall not effect the taxation of the company in respect of the profits

out of which the dividends are paid.

Notwithstanding the provisions of paragraphs 1 and 2 of this Article, dividends paid by a company which is a resident of a Contracting State shall be taxable only in the other Contracting State if the beneficial owner of the dividends is that other

State itself, a local government, local authority, or the Central Bank thereof, or any

governmental institution of the other State as defined in subparagraph c) of paragraph 2 of Article 4.

4, The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws

of the Contracting State of which the company making the distribution is a resident.

The provisions of paragraphs | and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated in that other State, or performs in that other State independent personal services from a fixed base situated in that other State, 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.

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 te 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 whally

or partly of profits or income arising in such other contracting State.

Article 11

Interest

l. Interest arising in a Contracting State and paid to a resident of the other

Contracting State shall be taxable only in that other State,

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

interest for the purpose of this Article.

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

case the provisions of Article 7 or Article 14, as the case may be, shall apply.

4, Where, by reason of a special relationship between the payer and the beneficial owner of the interest, 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 cach Contracting State, due regard being had to the other

provisions of this Agreement.

Article 12

Royalties

Royalties arising in a Contracting State and paid to a resident of the other

Contracting State may be taxed in that other State.

However, such royalties may also be taxed in the Contracting State in which

they arise and according to the laws of that State, but if the beneficial owner of the

royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5

per cent of the gross amount of the royalties,

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 hterary, artistic or scientific work including cinematograph films and works on films, tapes or other means of reproduction for use in connection with television or radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information

(know-how) concerning industrial, commercial or scientific experience.

4, The provisions of paragraphs | and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State , carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated in that other State, or performs in that other State independent personal services from a fixed base situated in that State 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.

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 liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base. then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or

fixed base is situated.

Where, by reason of a special relationship between the payer and the beneficial owner of the royalties or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had

to the other provisions of this Agreement.

Article 13 Capital Gains

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

be taxed in that other Contracting State.

Gains from the alienation of mavable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be

taxed in that other State.

3, Gains derived by an enterprise of a Contracting State from the alicnation 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.

Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3 shall be taxable only in the Contracting State of which the alienator

is a resident.

Artiele 14

Independent personal services

I. 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 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. For this purpose, where an individual who is a resident of a Contracting State stays in the other Contracting State for a period or periods exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concered, he shall be deemed to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in

that other State shall be attributable to that fixed base.

The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities ag well as the

independent activities of physicians, lawyers, engineers, architects, dentists and

accountants. Article 15 Dependent Personal Services

Subject to the provisions of Articles 16, 18, 19 and 20, salaries, wages and

other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived

therefrom may be taxed in that other State.

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 all the following

conditions are met:

a} the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in 12 month period commencing or ending in the fiscal year concerned;

b) the remuneration is paid by, or on behalf of, an employer who is net a resident of the other Contracting State;

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

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.

4, An individual who is both a national of a Contracting State and an employee

of an enterprise of that State the principal business of which cansists of the operation of

aircraft in international traffic and who derives remuneration in respect of duties performed

in the other Contracting State for a period not exceeding 4 years shall be taxable anly in

the first-mentioned State on remuneration derived from his employment with that

enterprise.

Article 16

Directors’ Fees

Directors” fees and other similar payments derived by a resident of a Contracting

State in his capacity as a member of the board of directors or other similar organ of a

company, which is a resident of the other Contracting State, may be taxed in that other

State.

Article 17

Artists and Sportsmen

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 activilies as such

exercised in the other Contracting State , may be taxed in that other State.

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

3, The provisions of paragraphs 1 and 2 shall not apply to income derived from the activities exercised in a Contracting State by an entertainer or sportsman if the visit to that State is wholly or mainly supported by public funds of one or both of the Contracting States or political subdivision or local authorities thereof. In such case the income shall be

taxable only in the Contracting State of which the entertainer or sportsman is a resident.

Article 18

Pensions

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

Notwithstanding the provisions of paragraph 1, and subject to the provisions of paragraph 2 of Article 19, pensions paid and other payments made, whether periodically or in a lump-sum, under the social security legislation of a Contracting State shall be

taxable in that State.

Article 19

Government Service

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

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

(i) is a national of that State; (i) did not become a resident of that State solely for rendering the services.

a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

b) However, such pension shall be taxable only in the other Contracting State

if the individual is a resident of, and a national of, that State.

The provisions of Articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision or a

local authority thereof.

Article 20

Teachers and Researchers

An individual who visits a Contracting State for the purpose of teaching or carrying out research at a university, college. school or other recognized educational institutions in that State and who is or was immediately before that visit a resident of the

other Contracting State, shall be exempt from tax in the first-mentioned State on any

remuneration for such teaching or research for a period not exceeding two years from the date of his first arrival in that State, provided that such remuneration is derived by him

from outside that State,

The provisions of paragraph 1 shall not apply to income from research if such activities are undertaken by the individual not in the public interest but primarily for

the private benefit of some person or persons.

Article 21

Students and Trainees

?aymenis which a student, an apprentice or a 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 his education or training receives for the purpose of his maintenance, education or training shall not be

taxed in that State, provided that such payments arise from sources outside that State.

Article 22

Income from Hydrocarbons

Nothing in this Agreement shall affect the right of a Contracting State or any of its local governments or local authorities to apply their domestic laws and regulations related to the taxation of income and profits derived from hydrocarbons and associated activities

situated in the territory of that Contracting State. Article 23 Other Income

I. Ttems of income of a resident of a Contracting State, wherever arising, not

dealt with in the foregoing Articles of this Agreement shall be taxable only in that State.

The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article

14, as the case may be, shall apply.

Article 24

Elimination of Deuble Taxation

In Lithuania double taxation shall be eliminated as follows:

Where a resident of Lithuania derives income which, in accordance with this Agreement, may be taxed in United Arab Emirates, unless a more favourable treatment is provided in its domestic law, Lithuania shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid thereon in United Arab Emirates.

Such deduction shall not, however, exceed that part of the income tax in Lithuania,

as computed before the deduction is given, which is attributable to the income which may

be taxed in United Arab Emirates.

In United Arab Emirates double taxation shall be eliminated as follows:

Where a resident of the United Arab Emirates derives income which in accordance with the provisions of this Agreement may be taxed in Lithuania, the United Arab Emirates shall allow as a deduction from tax on income of that person an amount equal to the tax on income paid in Lithuania.

Such deductions shall not, however, exceed that part of income tax, as computed before the deduction is given, which is attributable, to the income which may be taxed in

Lithuania.

Article 25

Non-Discrimination

Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of article 1, also

apply to persons who are not residents of one or both of the Contracting States.

The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, relieves and reductions for taxation purposes on account of civil status or family responsibilities which if grants to its own residents.
Except where the provisions of paragraph | of Article 9, paragraph 4 of Article 11 or paragraph 6 of Article 12 apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

4, Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are

or may be subjected,

The provisions of this Article shall, notwithstanding the provisions of

Article 2, apply to taxes of every kind and description.

Article 26

Mutual Agreement Procedure

fr, Where a person considers that the actions of one or both of the Contracting State result or will result for him in taxation not in accordance with the provisions of this Agreement, he may. irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph 1 of Article 25, to that of the Contracting State of which he is a national. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provision of the

Agreement.

The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also consult together for the elimination of double

taxation in cases not provided for in the Agreement.

The competent authorities of the Contracting States may communicate with each other directly, including through a joint commission consisting of themselves or their representatives, for the purpose of reaching an agreement in the sense of the preceding

paragraphs.

Article 27

Exchange of Information

The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws conceming taxes of every kind and description imposed on behalf of the Contracting States or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the

Agreement. The exchange of information is not restricted by Articles 1 and 2.

2, Any information received under paragraph | by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that Contracting State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

In no case shall the provisions of paragraphs | and 2 be construed so as to impose on a Contracting State the obligation:

a) to carry out administrative measures at variance with the laws and

administrative practice of that or of the other Contracting State; b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;

c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy

(order public).

4, If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain

the requested information, even though that other State may not need such information for

its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

5, In no case shall the provisions of paragraph 3 be construed to permit a Contracting Siate to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in agency or a fiduciary

capacity or because it relates to ownership interests in a person.

Article 28

Miscellaneous Rules

I. The provisions of this Agreement shall not be construed to restrict in any

manner any exclusion, exemption, deduction, credit or other allowance now or hereatter

accorded: a) by the laws of a Contracting State in the determination of the tax imposed by that State: b) by any other special arrangement on taxation between the Contracting

States.

Article 29

Members of Diplomatic Missions and Consular Posts

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under

the provisions of special agreements.

Article 30

Limitation of Benefits

Notwithstanding any other provision of this Agreement, a resident of a Contracting State shall not receive the benefit of any reduction in or exemption from taxes provided for in this Agreement by the other Contracting State if the main purpose or one of the main purposes of the creation or existence of such residency was for the resident or any person connected with such resident to obtain the benefits under this Agreement that would not

otherwise be available.

Article 31

Entry into Force

The Governments of the Contracting States shall notify each other when the constitutional requirements for the entry into force of this Agreement have been complied with.
The Agreement shall enter into force on the date of the later of the notifications referred to in paragraph 1 and its provisions shall have effect in both Contracting States:

a) in respect of taxes withheld at source, on income derived on or after the first

day of January in the calendar year next following the year in whieh the Agreement enters into force:

b) in respect of other taxes on income, for taxes chargeable for any fiseal year

beginning on or after the first day of January in the calendar year next

following the year in which the Agreement enters into force.

Article 32

Duration and Termination

This Agreement shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year slarting five years after the year in which this Agreement entered into force. In such event, the Agreement shall cease to have effect in both Contracting States:

a) in respect of taxes withheld at source, on income derived on or after the first day of January in the calendar year next following the year in which ihe notice has been given;

b) in respect of other taxes on income, to taxes chargeable for any fiseal year beginning on or after the first day of January in the calendar year next

following the year in which the notice has been given.

In witness whereof, the undersigned duly authorised thereto, have signed this

Agreement.

Done in duplicate at ANanoune- this 50 day of ‘deeete 20 13 in the Lithuanian, Arabian and English languages, all three texts being equally authentic.

In case of divergence of interpretation the English text shall prevail.

For the Government of For the Government of the Republic of Lithuania the United Arab Emirates

Linas Linkevitins Anwar Mohammed Gargash Minister of Foreign Affairs Minister of State for Foreign Affairs

PROTOCOL

At the signing of the Agreement between the Government of the United Arab Emirates and the Government of the Republic of Lithuania for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income (hereinalter referred to as "the Agreement") the undersigned have agreed upon the

following provisions which form an integral part of the Agreement.

I. With reference to subparagraph c) paragraph 2 of Article 4

It is understood that in the case of the United Arab Emirates a governmental institution defined in subparagraph c) of paragraph 2 of Article 4 shall include particularly but not exclusively the Abu Dhabi Investment Authority, the Abu Dhabi Investment Council, Mubadala Development Company (Mubadala), Dubai World, Dubai Investments Company (DIC), UAE Investment Authority and International Petroleum Investment

Company (IPIC).

2 With reference to paragraph 2 of Article 6

It is understood that the term “immovable property” includes options (agreements granting a right, without imposing any obligation, to purchase or sell immovable property for a determined price within a specified period of time) or a similar rights to acquire

immovable properties.

With reference to paragraph 1 of Article 8

It is understood that the term “profits” includes:

profits, net profits, gross receipts and revenues derived directly from the operation of ships or aircraft in international traffic;

“ interest on sums generated directly from the operation of ships or aircraft in international traffic which is incidental to such operation:

income from the sale of tickets on behalf of an enterprise operating ships or aircraft in international traffic;

~ income from rendering of engineering services and any other income arising from other technical services if such services are incidental to the operation

aircraft in international traffic,

With reference to Article 13

Itis understood that paragraph 4 includes capital gains from the alienation of shares derived by a resident of a Contracting State, including the governmental institution defined in subparagraph c) of paragraph 2 of Article 4, and such gains shall be taxable only in the

State of which the alicnator is a resident.

In witness whereof, the undersigned duly authorised thereto, have signed this

Protocol,

Done in duplicate at _/ VUOQNOUNQ, this 2 day ol Vie Ag 2018,

in the Lithuanian, Arabian and English languages, all three texts being equally authentic.

In case of divergence of interpretation the English text shall prevail.

For the Government of For the Government of the Republic of Lithuania the United Arab Emirates

Linas Linkevitius Anwar Mohammed Gargash

Minister of Foreign Affairs Minister of State for Foreign Affairs

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