Romania - United Arab Emirates Tax Treaty
AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED ARAB EMIRATES AND THE GOVERNMENT OF ROMANIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION
WITH RESPECT TO TAXES ON INCOME AND CAPITAL
The Government of the United Arab Emirates and the Government of ROMANIA desiring to promote and strengthen the economic relation by concluding an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital , have agreed as follows: -
Article (1) PERSONAL SCOPE
This Agreement shall apply to persons who are residents of one or both of the Contracting States.
Article (2) TAXES COVERED
i. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State, or its political subdivisions or local authorities or by administrative territorial units irrespective of the manner in which they are levied.
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There shall be regarded as taxes on income and on capital
all taxes imposed on total income , on total capital , aor on elements of income or capital, including taxes on gains from alienation of movable or immovable property as well
as taxes on capital appreciation
The existing taxes to which this Agreement shall apply are:- (a} In the case of the United Arab Emirates :-
(i) Income Tax .
(ii) Corporation Tax .
(hereinafter referred to as "U.A.E tax");
(b) in The case of Romania: - (i) tax on income derived by individuals; (ii) tax on the profits of bodies and legal persons: (iii) tax on salaries, wages and other similar remunerations;
(iiii} tax on income realised from agicultural activities. (hereinafter referred to as "Romanian tax").
This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes referred to in paragraph 2. The competent authorities of the Contracting States shall notify each other of any substantial changes which are made in their respective taxation laws within a reasonable period of time after such changes.
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Article (3) GENERAL DEFINITIONS
- For the purpose of this Agreement, unless the context otherwise requires :-
(a) the terms "a Contracting State" and "the other Contracting State” mean, as the context requires, Romania or the United Arab Emirates
(b) The term “ Romania" means the Romania and, used in a geographical sense, indicates the territory of the Romania including ite territorial sea as well as the exclusive economic zone and the continental shelf over which Romania exercises sovereign rights, in accordance with its internal law and with the international law, concerning the exploration and exploitation of the natural, biological and mineral resources existing in the sea
waters, sea bed and subsoil of these waters;
(ec) the term "United Arab Emirates" means the United Arab Emirates and used, in geographical sense to indicate the area in which the territory under its soverignity as well asp territorial sea, airspace and submarine areas over which the UNited Arab Emirates exercises in conformity with international law soverign rights including mainlands and islands under its jurisdiction.
285 (d) The term "tax" means U.A.E tax or Romanian tax as the context requires:
(e) The term "person" includes an individual, a company, or any other body of persons Legally setted up in either of the Contracting States:
(f) The term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes;
(g) The terms “enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State:
(h) The term "national" means: -
in the case of U.A.E all individuals possessing the hationality cf U.A.E in accordance with U.A.E laws and any legal person, partnership and other body corporate deriving its status as such from U.A.E laws;
In case of Romania any individual possessing the citizenship of Romania and all legal persons partnership, association and any other entity deriving its status as such from the laws in force in Romania.
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The term "international traffic" means any transport by ships or aircrafts operated by an enterprise which has its Place of management in either of the Contracting States, except when the ship or aircraft is operated solely between places in the other Contracting State .
The term "competent authority" means:
(i) in the case of U.A.E, The Minister of Finance and Industry or his authorised representative; and
(ii) in the case of Romania the Minister of Economy & Finance or his authorised representative
The term "Administrative Territorial Unite" is used in relation to Romania: and the term "Political Subdivision" and local authorities are used in relation to the United Arab Emirates.
In the application of this Agreement by either of the Contracting States, any term not defined therein shall -unless the context otherwise rcequires- have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies .
Article (4) RESIDENT
For the purposes of this Agreement, the term “resident of a Contracting State" means:-
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a) in the case of the United Arab Emirates, a person who
under the lawe of UAE has his domicile in the United Arab Emirates and a company which is incorporated in the United Arab Emirates and has its effective place of management therein.
Bb) in the case of Romania means any person whe under the laws of Romania has his domicile in Romania and a company which is incorporated in Romania and has ite effective place of management therein -
For the purpose of pharagraph 1 above in the case of The
United Arab Emirates the term "resident" shall include:
a) the Government of the United Arab Emirates or any political subdivision or local authority thereof
b) Any Governmental institutions created under public law such as the Central Bank, funds, corporations, authorities, foundations, agencies or any other similar entities established in the United Arab Emirates:
c) any intergovernmental entity established in the United Arab Emirates in whose capital the United Arab Emirates subscribes together with other States.
Where by reason of the provisions of paragraph 1 an individual is deemed to be a resident of bath Contracting States, then his status shall be defined as follows:-
(i) he shall be deemed to be a resident of the State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (centre of vital interests};
(ii) if the Contractig State in which he has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting States, he shall be deemed to be a resident of the Contracting State in which he has a habitual abode:
(iii) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;
(iv) if he is a national of both Contracting States or of
neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
(4) Where by reason of the provisions of paragraph one a person other than an individual is a resident of both Contracting States then such a person shall be deemed to be a resident of the State in which his place of effective management is situated.
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Article (5) PERMANENT ESTABLISHMENT
For the purposes of this Agreement. the term "permanent establishment" means a fixed place of business in which
the business of an enterprise is wholly or partially carried out.
The tern ‘permanent establishment" shall include
specifically: -
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory:
(e) a workshop:
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;
(g) a farm or plantation.
The term "permanent establishment" likewise encompasses:
(a) a building site, a construction, assembly ofr installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than nine months within any twelvemonth period.
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(b) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel in the other Contracting State, provided that such activities continue for the same project or a connected project for a period or periods aggregating more than nine months within any twelvemonth period.
Notwithstanding the provisions of paragraphs 1 to 3, the term "permanent establishment" eshall 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 maintainance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery:
(c) the maintainance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d) the maintenance of a fixed place cf business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;
(e) the maintainance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character.
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(f) The sale of goods or merchandise belonging to the
enterprise displayed in the frame of an occasional temporary fare or exhibition after the closing of the
said or exhibition: provided that involving parties or companies fullfilled all requirements in either Contracting States.
Notwithstanding the provision of paragraph 1 and 2 a person acting in a Contracting State on behalf of an enterprise of the other Contracting State -other than an agent of an independent status to whom paragraph 6
applies- shall be deemed to be a permanent establishment in the first-mentioned State if:
a} he has in the first-mentioned State a general authority to negotiate and conclude contracts for or on behalf of such enterprise, or
b) he maintains in the first-mentioned State a stock of goods or merchandise from which he regularly sells goods or merchandise for or on behalf of such enterprises, or
c) he secures orders in the first-mentioned State, exclusively or almost exclusively for the enterprise itself or for such enterprise and other enterprises which are controlled by it, or have a controlling interest in it.
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6. A broker, a commission agent or other agent of genuinely independent status who merely acts as an intermediary between an enterprise of one of the Contracting States and a prospective customer in the other Contracting State shall not be deemed to be a permanent astablishment in that other Contracting State in the case where such activities do not involve securing of orders within the meaning of paragraph 5 above and 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 of is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
Article (6) INCOME FROM IMMOVABLE PROPERTY
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 Contracting State.
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The term “immovable property" shall have the meaning which
it has under the 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 provisions of the general law with respect to landed property apply. Usufruct of immovable proparty 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, beats, 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 form of immovable property.
The provisions of paragraph 1 and 3 shall alse 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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Article (7) BUSINESS PROFITS
The profits of an enterprise of a Contracting State shall only be taxable in that State unless the enterprise carries on business in the other Contracting State through & 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
80 much of them as ig attributable to that permanent establishment.
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 distinet 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
incured for the purposes of the permanent establishment,
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including executive and general administrative expenses 50
incured, whether in the State in which the permanent establishment is situated or elsewhere, this provision is applicable irrespective of the limitation provided by the internal laws.
In so far as it has been customary in a Contracting State to determine the profits to be attributed to a permenant establishment on the basis of an apportionment of the total profits of the enterprise to its varicus parts, nothing in this pharagraph shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary, the methods of apportionment adopted shail however be such that the result shalk be in accordance with the principles contained in this Article.
No profits shall be attributed to a permenant establishment by reason of the mere purchase by the permenant establishment of goods or merchandise for the enterprise.
For the purpose of the preceeding paragraphs. the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is
a good and sufficient reason to the contrary.
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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.
Article (6) SHIPPING AND AIRTRANSPORT
Profits derived from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective Managment of the enterprise is situated.
If the place of effective management of a shipping enterprise is aboard a ship, then it shali be deemed to be Bituated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the
operator of the ship is a resident .
The provisions of paragraph 1 shall also apply to profits derived from the participation in shipping or aircraft pools, a joint business or an international operating agency and interest on funds related to the operation of airc craft.
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- Notwithstanding the provision of Article 3 paragraph (q):-
a)
b)
(1) Where - {a)
(b)
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For the purpose of paragraph 1 of this Article, the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State" mean an enterprise designated by the government of the United Arab Emirates or the government of Romania as the context requires.
The competent authorities of the Contracting States shall exchange the lists of enterprises referred to in paragraph {a) above.
Articla (9} ASSOCIATED ENTERPRISES
an enterprise of a Contracting $tate participates directly or indirectly in the management. control Or capital of an enterprise of the other Contracting State; or
the same persons participated 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 énterprises, but by reason of those conditions, have not so accrued,
May be included in the profits of that enterprise and taxed accordingly.
(2) Where a Contracting State includes in the profits of an
enterprise of that State, and taxed accordingly, profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. in determining, such adjustment, due regard shall be paid 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.
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However, such dividends may also be taxed in the
Contracting State in which the company paying the dividend is a resident and according to the laws of that State; but if the cecipient igs the beneficial owner of the dividend,the tax so charged shall not exceed 3% (three percent) of the gross amount of the dividend.
Notwithstanding the provisions of paragraphs 1 and 2 dividends paid by a company which is a resident of either Contracting State shall not be taxable if the beneficial owner of the dividends is :
(a) the Government of any Contracting State or any governmental institutions or entity thereof;
(b) a company which is a resident of either Contracting State and the capital of which is owned directly or indirectly (at least 25% twenty five percent) by the government or governmental institutions of either Contracting States.
The provisions of paragraphs 2 and 3 shall not affect the taxation of the company in respect of the profits out of which the dividends are paid with due consideration to the law for foreign investment.
The term "dividends" as used in this Article means income from shares, "jouissance" shares of "jouissance" rights, mining shares, founders' shares or other rights, not being debt-claims, participating in profits, as well as income
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from other corporate rights 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.
The provisions of paxagraphs 1 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 or 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. tn such case the provisions of Article 7 or 15 shall apply.
Where a company which is a resident of a Contracting State derives profits orc income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.
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Article (11) INTEREST
Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.
However, such interest may be taxed in the Contracting State in which it arises and according to the law of that State, but if the recepient ig the beneficial owner of the interest, the tax s0 charged shall not exceed 3% (three percent} of the gross amount of the interest.
Notwithstanding the provisions of paragraphs 1 and 2 of this Article interest arising in:-
(a) U.A.E and paid to the government of Romania or to its National Bank or to any of its financial institutions shall be exempted from U.A.E tax. .
(b) Romania and paid to the government of the United Arab Emirates or its financial institutions shall be exempted from Romanian taxes.
(c}) Such institutions the capital of which is wholly or Partially owned by the governments of the United Arab Emirates or Romania shall be exempted from ail forms of
taxation related to interest in either Contracting State.
302 4. For the purpose of paragraph 3 the term government:
(a) in case of U.A.E means the government of the United Arab Emirates. and shall include:
- the political subdivision, the local authorities, the local administrations, and the local government. ii) United Arab Emirates Central! Bank, Abu Dhabi Investment Authority and other governmental institutions.
(b) in case of Romania means the government of Romania and shall include:
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Administrative territorial units
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National Bank of Romania
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Romanian Bank for Development
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Romanian Bank for Agriculture
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Romanian Bank for Foreign Trade
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any other Governmental Institutions
The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured hy 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 the premium and prizes attaching to such securities, bonds. or debentures. Penalty charges for late payments shall not be regarded as interest for the purpose of this article.
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The provisions of paragraph Ll and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises,through a permanent establishment or fixed base situated therein, or the person that 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 effectively connected with such permanent establishment or fixed base, in such case the provision of Article 7 and Article 15, as the case may be, shall apply.
Interest shall be deemed to arise in a Contracting State when the payer is the Government of that State, a political subdivision, a local authority or administrative territorail units thereof, orf a resident of that State. Where however, the person paying the interest, whether he is 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 incured, 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.
Where, by reason of a special relkatioship between the payer
and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to
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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 abscence 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 given to the other provisions of this Agreement.
Notwithstanding the provisions of paragraph 1 and 2 of thie Article, the government of one of the Contracting States shall be exempt from tax in the other Contracting State in respect of any form of income being derived by such government and its institutions referred to in paragraph 4 ~ from the other Contracting State.
Article (12) Royalties
Royalties arising in a Contracting State and paid to a resident of the other Contracting State shali 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 recepient is the beneficial owner of the royalties then the tax so charged shall not axceed 3% (three percent} of the gross amount of such royalties.
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Notwithstanding the provisions of paragraph 2, approved
industrial royalities shall be exempted from tax in either Contracting State.
In this Article the term "royalties" means payment of any kind received as consideration for:-
the copy right (other than a literary, dramatic, musical or artistic copy right).patent, design ofr model,plan or secret formula or process trade mark or industrial,commercial and scientific experience, but does not include payment in respect of the operation of mines or quarries or exploitation of natural resources.
The provieions of paragraphe 1 and Zz 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 permenant establishment located therein or performs in that other state independant personal services from a fixed base situated therein and the right of property in respect of which the royalties are paid is directly connected with such permenant establishment or fixed base. In such case the provisions of Article 7 or 15 as the case may be shall apply.
Royalties shall be deemed to arise in a Contracting State
when the payer is that State itself, a political subdivision, a local authority or administrative
306 1. territorial units, thereof or 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 a fixed base then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or a fixed base is situated.
Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other pergon, 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 abscence 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
given to the other provisions of this agreement.
ARTICLE (13) COMMISSION
Commission 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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However, such commission may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the recipient is the beneficial owner of the commission the tax so charged shall not exceed 3% (three percent) of the gross amount of the commission.
The term “commission” as used in thie Article means a payment made to a broker, a general commission agent or to any other person as similar to a broker or agent by the taxation law of the Contracting State in which such payment arises.
The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the commission, being a resident of a Contracting State, has in the other Contracting State in which the commission arises, a permanent establishment with which the activity giving rise to the commission is effectively connected. In such case the provisions of Article 7 shall apply.
Commission shall be deemed to arise in a Contracting State when the payer is that State itself, a territorial - administrative unit or a resident of that State. Where, however, the person paying the commission, whether he is a resident of a Contracting State or not. has in a Contracting State a permanent establishment in connection with which the activities for which the payment is made was incurred, and such commission is borne by such permanent
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establishment, then such commission shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the commission, having regard to the activities 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 that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being made to the other provisions of this Agreement.
Article (14) GAINS FROM THE ALIENATION OF PROPERTY
Gains derived by a resident of a Contracting State from the alienation of immovable property, as defined in paragraph 2 of Article 6,and situated in the other Contracting State may be taxed in the Contracting State in which such property is situated.
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Gains from the alienation of movable property forming part
of the business property of a permanent establishment or a fixed base which an enterprise of a Contracting State hag 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 together with the whole
enterprise) or of such a fixed base, may be taxed in that other State.
Gains from the alienation of ships or aircraft operated in international traffic and movable property pertaining to the operation of such ships or aircraft shall be taxable only in the Contracting State in which the place of
effective management of the enterprise is situated.
Gains from the alienation of any property other than that referred to in paragraphs 1 to 3, shall be taxable only in the Contacting State of which the alienator is a resident.
Article (15) INDEPENDENT PERSONAL SERVICES Income derived by a resident of a Contracting State in
respect of professional services or other independent activities of a similar charachter may be taxed by that
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Contracting 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 Contracting State, but only as much as it is attributable to that fixed base.
The term "proffessional services" include especially independant scientific, literary and artistic education or teaching activities as weli as the independant activities of physicians, lawyers, engineers, architects, accountants -and dentists.
Article (16) DEPENDENT PERSONAL SERVICES
Subject te the provisions of Articles (17},(20),(21),and (22) salaries, wages and other similar remuneration derived by 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:
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a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned, and
b) the remuneration is paid by, or on behalf of, an employer, who is not a resident of the other Contracting State, and
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 shall be taxed only in the Contracting State in which the place of effective management of the enterprise is situated.
Article (17) TEACHERS AND RESEARCHES
An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State and who, at the invitation of any university, college, school or other similar educational institution or scientific research institution visits that other State for a period not exceeding three years solely for the purpose of teaching or conducting research or both at such educational institution or scientific research institution
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shall be exempted from tax for a period not exceeding three years in that other State on any remuneration for such teaching or research.
ARTICLE (18) STUDENTS AND TRAINEES
A student or business apprentice whe. immediately before visiting a Contracting State is or was a resident of the other Contracting State and who is present in the first mentioned Contracting State for the Purpose Of his education or training shall be exempt from tax in that first-mentioned Contracting State on:
(a) payments made to him by persons residing outside that first-mentioned Contracting State for the purpose of his maintainance, education or training; and
(b) remuneration from employment in that first-mentioned Contracting State. provided that such employment being a full time employment, lasts not more than 183 days in the year of assessment.
An individual who, immediately before visiting a Contracting State is or was resident of the other Contracting State and who is temporarly present in the first-mentioned State primarily for the purpose of study,
research or training as a recipient of a grant, allowance
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or award from a scientific, educational, religious or charitable organisation or under a technical assisstance Programme entered into by the Government of a Contracting State shall, from the date of his arrival in the first-mentioned State in connection with that visit, be exempt from tax in the State, for a period not exceeding the period of the grant.
Article (19) DIRECTORS' FEES
Directors' fees and similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
Article (20) PENSIONS AND ANNUITIES
Subject to the provision of paragraph (2) of Article 21 pensions, annuities and other similar remuneration paid to the resident of a Contracting State in consideration of Past employment shall be taxable only in that State.
The term pensions, annuities and other similar remuneration as used in this article means periodic paymente made after
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retirement in consideration of past employment or by way of the compensation for injuries recieved in connection with past employment.
Article (21) GOVEENMENT SERVICES
Remuneration including pensions paid by a Contracting State, a political subdivision, a Local authority or administrative territorial units thereof to any individual in respect of services of public nature rendered to that State, subdivision, local authority or administrative territorial units shall be taxable only in that State. However such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State, if the individual is a resident of that State, a Rational of that State and not a national of the first mentioned State.
The provisions of Articles (16),(17), and (20) shall apply to remuneration or pensions in respect of services rendered in connection with any trader business carried on by one of the Contracting States, a political subdivision, local authority of administrative territorial units thereof.
The previsions of paragraph 1 shail likewise apply in
respect of remuneration paid under a development assistance programme of a Contracting State, a political subdivision,
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a local authority or administrative territorial unite thereof out of funds exclusively supplied by that state or its political subdivision, a local authority Or administrative territorial units to a specialist or volanteer seconded to the other State with the consent of Chat other State.
Article (22) ARTISTS AND ATHLETES
Notwithstanding the provisions of Articles 15 and 16, income derived by a resident of a Contracting State as a public entertainer, such as a theatre, motion picture, radio or television artists, or a musician, or as an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State in which these activities are performed.
Where income in respect of personal activities exercised by an entertainer or an athlete in his capacity as such accrues not to the entertainer of athlete himself but to another person, that income may. notwithstanding the provisions of Articles 7. 15 and 16, be taxed in the Contracting State in which the activities of the
entertainer or athlete are axercised.
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Income derived from such activities performed within the frame work of cultural agreements concluded between the Contracting States are reciprocally exempted from tax only if such activities are sponsered by the government of a Contracting State and the activities are not carried out for the purpose of profits.
Article (23) OTHER INCOME
Items of income of a resident of a Contracting State, wherever arising, which are not expressly 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, derived by a resident of a Contracting State, if this resident carries on business in the other Contracting State through a permanent establishment situated therein, ofr 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 provisons of Article 7 or Article 15, as the case may be, shall apply.
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Article (24) CAPITAL
Capital represented by immovable property as defined in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in the Contracting State in which the property is situated.
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 the Contracting State in which the permanent establishment or fixed base is situated.
Capital represented by ships and aircraft operated in international traffic and by movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
All other elements of capital of a resident of a Contracting State shall be taxable only in that state.
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(Article 25) METHODS OF ELIMENATION OF DOUBLE TAXATION
Double taxation shall be elemenated as follows:
{a)in case of United Arab Emirates:-—
according to the legislation of the U.A.E.taking into account the general principle of avoidance of double
taxation with adherance of either credit or debit method.
(b)in case of Romania:-—
The
in
Taxes paid by Romanian residents in respect of income or capital taxable in the United Arab Emirates, in accordance with the provisions of this Agreement, shall be deducted from the Romanian taxes due according to the Romanian fiscal laws. Such deduction shall not, however,exceed that part of the income tax or capital tax, as computed before the deduction ig given which is attributable to the income or the capital which may be taxed in that other State.
Article (26) NON-DISCRIMINATION
nationals of a Contracting State shall not be subjected the other Contracting State to any taxation or any
requirement connected therewith which is other or more
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burdensome than that which the nationals of the other State
in same circumustances are or may be subjected.
The taxation or relief of taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be lese favourably levied in that other Contracting State than the taxation levied on enterprises of that other State carrying on the same activities in the same circcumustances and under the same methods.
(a} This article shall not be construed ag obliging a Contracting State to grant to residents of the other Contracting State any personal allowances. reliefs and reductions for taxation purposes an account of civil status or family responsibility which it grants to its own residents.
(b}) Nothing in this Article shall be construed as imposing a legal obligation on a Contracting State to extend to the residents of the other Contracting State, the benefit of any treatment, preference or privilege which may be accorded to any other State or its residents by virtue of the formation of a customs union, economic union, a free trade area or by virtue of any regional or sub-regional arrangement relating wholly or mainly to movement of capital and/or taxation, to which the first-mentioned State may be a party pursuant to the peactice of either Contracting State.
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Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly of indirectly, by one or more residents of the other Contracting State not resident in the first mentioned state, shall not be subject in the first-mentioned Contracting State to any taxation or any requirement connected therewith which is other or more burdensome than that to which other similar enterprises of that first mentioned State are subjected.
In this article the term "taxation" means taxes of every kind and description which are the subject of this Agreement.
Article (27) MUTUAL AGREEMENT PROCEDURE
Where a resident of a Contracting State considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this convention, he may, without prejudice tc the remedies provided by the national laws of those States, address to the competent authority cf the Contracting State of which he is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted within three years from the first notification of the action resulting in taxation not in accordance with this Agreement.
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The competent authority of the Contracting State shall endeavour, if the objection appears to it to be justified
and if it is not by itself able to arrive at an appropriate solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation not in accordance with this Agreement.
The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties ocr doubts arising as to the interpretation or application of this Agreement. They may also consult together for elemination of double taxation in cases not provided for in this Agreement.
The competent authorities of the Contracting States shall, when necessary, communicate with each other directly for the purpose of applying this Agreement and reaching an agreement in the sense of the preceedings paragraphs.
Article (28) EXCHANGE OF INFORMATION
The competent authorities of the Contracting States shall exchange such information as is necessary for the carrying out the provisions of this Agreement. Any information so exchanged by a Contracting State shall be treated as secret in the same manner as information obtained under the
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domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or Prosecution in respect of, Or the getermination of appeals in relation to, the taxes covered by this Agreement. 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 paragraph lL be construed sO as to impose on one of the Contracting States the
obligations:
(a} to carry out administrative measures at variance with the laws or the administrative practice of that or of the other Contracting State:
(b) to supply information which are 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 industrial, commercial or professional secret or trade Process, or information, the disclosure of which would be contrary to public policy or public order.
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Article (29)
DIPLOMATIC AND CONSULAR OFFICIALS
The provision of this Agreement shall not affect the fiscal privileges of members of diplomatic or consular missions under the general rules of international law or under the provisions of special agreements.
Article (30) ENTRY INTO FORCE
Ll. The Government of the Contracting State shall notify to @ach other that the domestic laws requirements for the entry into force cf this Agreement have been complied with.
- The Agreement shall enter into force thirty days after the date of the latter of the notifications referred to in paragraph 1 of this Article and its provisions shall have effect:
(i) in respect of withholding tax on income and taxes on capital gains derived by a non-resident, in relation to income and capital gains derived on or after lst January in the calendar year immediately following that in which the Agreement enters into force.
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(ii} in respect of other taxes, in relation to income of
any basis period beginning om or after lst January in the calendar year immediately following that in which the Agreement enters into force.
Article (31) TERMINATION
This agreement shall continue in effect unless either of the Contracting State deliver a written notification through the deplomatic channel for its desire to terminate this Agreement: such a written notification must be given on or before the 30th of June in any calendar year beginning after the expiration of a period of five years from the date of its entry into force.
in such event this Agreement shall cease to have effect:
(i) in respect of withholding tax on income and taxes on Capital gains derived by a non-resident, in relation to income and capital gains derived on or after ist January in the -calendac year immediately following that in which the notice of termination is given;
(ii) in respect of other taxes. in relation to income of any basis period beginning on or after lst January in the calendar year immediately following that in which the notice of termination is given.
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In witness whereof
undersigned, duly authorised
thereto, by their respective Governments, have signed thia
Agreement.
Done at Abu Dhabi on the llth of April, 1993 corresponding to 19 Shawal H.G. 1414 in duplicate in the Arabic, English and
Romanian languages, both texts,
being equally authentic.
In the case there is any divergence of interpretation of the
provisions of this Agreement the English text shall prevail.
FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES
AHMED HUMAID AL - TAYER MINISTER OF STATE FOR FINANCE AND INDUSTRY
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FOR THE GOVERNMENT OF ROMANTA
FLOHIN GEORGESZU MINISTER OF ATE MINISTER OF FINANCE
PROTCCOL
At the signing today of the Agreement between the Government of the United Arab Emirates and the Government of Romania for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income and capital, the undersigned have agreed upon the following provisions which shall form an integral part of this Agreement:
L. Nething in this Agreement shall affect the right of the Government of the United Arab Emirates, its political subdivision or local authorities to apply its own laws related to the taxation of income derived from the petroluem and natural resources such activities will be taxed according to the law of the United Arab Emirates.
In witness whereof the undersigned. duly authorized thereto, by the ecespective Governments have signed this protocol.
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Done in duplicate at Abu Dhabi this 11th April corresponding to Shawal 19th H.G. 1414 in the Arabic, Romanian and English languages, both texts being equally authentic.
In the case there is any divergence of interpretation of
this Protocol, the English text shall prevail.
FOR THE GOVERNMENT OF THE FOR THE GOVERNMENT OF THE UNITED ARAB EMIRATES ROMANTA
AHMED HUMAID AL - TAYER MINISTER OF STATE FOR FINANCE AND INDUSTRY
OF STATE MINISZER OF FINANCE
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