Uzbekistan - United Arab Emirates Tax Treaty

AGREEMENT '-"

BETWEEN THE GOVER~NT OF THE UNITED ARAB EMIRATES AND THE GOVERNMENT OF REPUBLIC OF UZBEKISTAN FOR THE AVOIDANCE OF DOUBLE TAXATION A.1W THE PREVENTION OF FISCAL EVASION \VITH RESPECT OF TAXES ON INCOME AAl) CAPITAL

AGREEMENT BETWEEN THE GOVERNMENT THE UNITED ARAB EMIRATES OF AND THE GOVER...lItJMENT THE REPUBLIC OF UZBEKISTAN OF FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT OF TAXES ON INCOME AND CAPITAL

The Government of the United Arab Emirates and thr Government of the Republic of Uzbekistan 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

1. This Agreement shall apply to taxes on income and on capital imposed on behalf of a Contracting State or its territorial- administrative subdivisions

or local authorities or by local governments irrespective of the manner in which they are levied. 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or capital. including taxes on gains from alienation of movable or immovable property as well as taxes on capital appreciation and taxes on the total amounts of wages or salaries paid by enterprises. 3. The existing taxes to which this Agreement shall apply are: a) in the case of the Republic of Uzbekistan : (i) the tax on income (profit) oflegal persons;

(ii) the tax on income of individuals; (iii) the property tax;

(hereinafter referred to as "Uzbekistan taxes") ;

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b) in the case of the United Arab Emirates: .:

(i)

individual income tax; and

(ii)

corporation tax; (hereinafter referred to as "U.A.E. taxes").

4. This Agreement shall also apply to any identical or substantially similar taxes which are imposed by either of the Contracting State 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.

Article 3 GENERAL DEFINmONS

1. 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, the Republic of Uzbekistan or the United Arab Emirates; b) the term "Uzbekistan tl means the Republic of Uzbekistan, and by the use in the geographical sense includes its territory, the territorial waters and air space over them where the Republic of Uzbekistan may exercise sovereign rights and jurisdiction including rights to use the subsoi1 and natural resources in accordance with international law and the laws of the Republic of Uzbekistan ;

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c) the term "United Arab Emirates", means the United Arab Emirates and when used in a geographical sense, means the area in which the territory is under its sovereignty as well as the territorial sea, airspace and submarine areas over which the United Arab Emirates exercises, in conformity with international law and the law of United Arab Emirates sovereign rights, including the mainland and islands under its jurisdiction in respect of any activity carried on in connection with the exploration for or the exploitation of the natural resources; d) the term "tax" means Uzbekistan tax or U.A.E. tax as the context requires; e) the term "person" includes an individual, a company or any other body ofpersons; 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" means respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; -~-

h) the tenn "national" means: (i) any individual possessing the nationality of a Contracting State~

(ii) any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.

The teon "international traffic" means any transpon by ships, aircraft or road vehicles operated by an enterprise of a Contracting State, except when the ship or aircraft and automobile is operated solely between places in the other Contracting State.

The teon "competent authority" means: a) in case of Republic of Uzbekistan - the State taxation Conunittee of the Republic ofUzbekistan or its authorized representative; and b) in the case of U .A.E. - the Ministry of Finance and Industry or its authorized representative.

4. As regards the application of this Agreement by either of the Contracting States, any tenn not defmed therein shall - unless the context otherwise requires- have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies.

Article 4

RESIDEJ"7 1.

For the purposes of this Agreement, the term "resident of a Contracting State" means any person who under the laws of that State is liable to tax therein by reason of his domicile, residence, place of management, place of registration or any other criterion of a similar nature. But this tenn does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.

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2.

Where by reason of the provisions of paragraph 1 of this Artic]e an individual is deemed to be a resident of both Contracting States then his status shall be dermed as follows: a) he shaH be deemed to be a resident of the Contracting State in which he has a permanent home available to him. If he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the Contracting State with which his personal and economic relations are closer (center of vital interests); b) if the Contracting State in which he has his center of vital interests cannot be determined, or if he does not have a pennanent home available to him in either Contracting States, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national; and d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.

ArticleS PERMANENT ESTABLISHMENT

1. 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 partly carried on.
2. The term "permanent establishment "shall include

specifically:

g)

a)

a place of management;

b)

a branch;

c)

an office;

d)

a factory;

e)

a workshop;

f)

an installation or structure for the exploration of natural resources;

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

a farm or plantation.

3. The term "permanent establishment" also includes: a) a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than twelve months period; b) the furnishing of services, including consul tansy services, by an enterprise of a Contracting State through employees or other personnel in the other Contracting State, provided that such activities continue for a period or periods aggregating more than nine months within any twelve month period.
4. Notwithstanding the provisions of paragraphs I to 3, 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;

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c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or for collecting information, for the enterprise;

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e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e) provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character ; and

g) The sale of goods or merchandise belonging to the enterprise displayed in the frame of an occasional temporary fair or exhibition after the closing of the said fair or exhibition, provided that involving parties or companies fulfill all requirements in either Contracting States. 5. Notwithstanding the provisions of paragraphs I and 2 of this Article 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 of this Article applies - shall be deemed to be a permanent establishment in the first - mentioned State if: a) He has an habitually exercises 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 fust - mentioned State a stock of goods or merchandise belonging to the enterprises from which he regularly sells good or merchandise for, or on behalf of, such enterprises, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business,

would not make this fixed place of business a permanent establishment under the provisions of that paragraph. or c) He maintains 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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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. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a pennanent establishment of the other.

Article 6 INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
2. The term "immovable property" shall have the meaning which it has under the 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 law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right of work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property.

The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable propeny.

4.

The provisions of paragraphs 1 and 3 of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Article 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall only be taxable in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
2. Subject to the provisions of paragraph 3 of this Article where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. It is not allowed to deduct to the permanent establishment the sums paid to its leading establishment or to any other of resident's payments for the establishments by way of royalty, duty or other similar use of patents or the other rights, or by way of commission payment for the provided concrete services or for the management or by way of interest payment in an amount that is lent to the permanent establishment.
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

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apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 of this Article shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary, the methods of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article. 5.

No profits shall be attributed to a pennanent establishment by reason of the mere purchase by the permanent establishment of goods or merchandise for the enterprise.

For the purpose 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 a 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.

Article 8 lNTER..N'ATIONAL TRANSPORT

1. Notwithstanding the provisions of Article 7, profits derived by a resident

of a Contracting State from the operation of ships or aircraft or road vehicles in international traffic shall be taxable only in that State. 2. The provisions of paragraph 1 of this Article shall also apply to profits referred to in those paragraphs derived by a resident of a Contracting State from its participation in a pool, a joint business or an international operating agency. 3. In this Article a) the tenn "profits" includes: (i)

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

(ii) interest on sums generated directly from the operation of ships, aircraft or road vehicle in international traffic which is incidental to such operation; b) the tenn "operation of ships, aircraft or road vehicle" in international traffic by a person, includes: (i)

the charter or rent of ships, aircraft or road vehicle;

(ii) the rent of containers and related equipment, and (iii) the alienation of ships, aircraft or road vehicle, containers and related equipment by that person provided that such charter, rent or alienation is incidental to the operation by that person of ships, aircraft or road vehicles in international traffic. 4. In respect of operation of ships, aircraft or road vehicles in international traffic carried on by an enterprise of a Contracting State, if an enteIprise of Uzbekistan will be exempt from the value added tax in D.A.E. then the enterprise ofD.A.E. shall also be exempt from the value added tax in

Uzbekistan.

Article 9 ASSOCIATED El\7ERPRISES

1. Where: a) an enterprise of a Contracting State partICIpates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State ; or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State; and in either case conditions are made or imposed between the two enterprises in their commercial or fmancial 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. 2. Where a Contracting State includes in the profits of an enterprise of that State, and taxes accordingly, profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise of the first - mentioned State if the conditions made between the two

enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this 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. 2.

However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient and the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed : a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than partnership) which holds directly at least 25 per cent of the capital ofthe company paying the dividends; b) 15 percent of the gross amount of the dividends in all other cases. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends paid.

3. Notwithstanding the provisions of paragraphs 1 and 2, 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 territorial- administrative subdivision or local authority thereof or: in the case of Uzbekistan - the Central Bank, the National Bank of the Foreign Economic Activity of the Republic of Uzbekistan or any other similar government institution that will be agreed by the competent authorities of the Contracting States; in the case of V.A.E. - the Central Bank, Abu Dhabi Investment Authority, Abu Dhabi Fund for Economic Development or any other similar government institution that will be agreed by the competent authorities of the Contracting States. 4.

The term "dividends" as used in this Article means income from shares, ')ouissance~' shares of ')ouissance" 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 State of which the company making the distribution is a resident.

The provisions of paragraphs 1, 2 and 3 of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent persona] services from a fixed base situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14~ as the case may be, shall apply. 6. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State, or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or 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.

Article 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but, if the recipient (the beneficial owner of the interest) is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

3. Notvvithstanding the provisions of paragraphs 1 and 2, interest 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 interest is that other State itself, a territorial- administrative subdivision or local authority thereof or : a) in the case of Uzbekistan - the Central Bank or the National Bank of the Foreign Economic Activity of the Republic of Uzbekistan or any other similar government institution that will be agreed by the competent authorities of the Contracting States; b) in the case of U .A.E. - the Central Bank, Abu Dhabi Investment Authority or Abu Dhabi Fund for Economic Development or any other similar government institution that will be agreed by the competent authorities of the Contracting States.
4. The term "interest" as used in this Article means income from debt­ claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the 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 ofthis Aniele.

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The provisions of paragraphs 1, 2 and 3 of this Anicle shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services form a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 and Article 14, 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 territorial- administrative subdivision, a local authority thereof or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fIXed base is situated.

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Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship. the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of payments shall remain taxable according to the laws of each Contracting State, due regard being bad to the other provisions of this Agreement. Notwithstanding the provisions of Article 7 of this Agreement, interest arising in a Contracting State paid to and hold by a resident of the other Contracting State shall be exempt from tax in the first-mentioned State if it was paid in respect of loan made, guaranteed or insured, or in respect of any other debt-claim or credit guaranteed or insured on behalf of the other Contracting State by its authorized organ.

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Article 12 ROYALTIES 1.

Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

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 recipient is the beneficial owner of the royalties then the tax so charged shall not exceed 10 per cent of the gross amount of 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 literary or artistic work (including cinematograph films, and films or tapes for radio or television broadcasting) and for the use of, or the right to use, any copyright of scientific work, patent, trade mark, design or model, plan, secret fonnu1a or process, or for information concerning industrial, commercial or scientific experience.

The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State carries on business in the other Contracting State in which the royalties arise, through a pennanent establishment situated therein or performs in that other State independent personal services from a fixed base situated therein and the right or property in respect of which the royalties are paid is directly 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 that State itself, a territorial-administrative subdivision, a local authority thereof or a resident of that State. "''here, however, the person paying the royalties, whether he is a resident of a Contracting State not, has in a Contracting State a pennanent 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 person, the

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amount of the royalties, having regard to the use, right or infonnation for which they are paid, exceeds for whatever reason, 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 1.

Gains derived by a resident of a Contracting State from the alienation of immovable property, referred in Article 6, situated in the other Contracting State may be taxed in that other State.

Gains from the alienation of movable property forming part of the of a pennanent establishment which an business property 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 pennanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

Gains from the alienation of ships, aircraft or road vehicles operated in international traffic by an enterprise of a Contracting State or from the alienation of movable property pertaining to the operation of such ships, aircraft or road vehicles, shall be taxable only in that Contracting State.

Gains from the alienation of shares of the capital stock of a company the property of which consists directly or indirectly principally of immovable property situated in a Contracting State may be taxed in that State.

Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 4 of this Article shall be taxable only in the Contracting State of which the alienator is a resident.

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Article 14 INDEPENDENT PERSONAL SERVICES

Income derived by a resident of a Contracting State in respect of professional or other activities of an independent character shall be taxable only in that State except in the following circumstances, when such income may also be taxed m the other Contracting State: a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other State; or b) if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve-month period concerned;

The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as wel1 as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15 DEPENDENT PERSONAL SERVICES 1.

Subject to the provisions of Articles 16, 17, 18, 19 and 20 of this Agreement, 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 of this Article remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first·mentioned State if:

a) the recipient is present in the other 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 pennanent 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, aircraft or road vehicle operated by an enterprise of a Contracting State in international traffic may be taxed in that State.

Article 16

TEACHERS AND RESEARCHERS An individual who is a resident of a Contracting State immediately before mal."ing 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 research or both at such educational institution or scientific research institution shall be exempted from tax for a period not exceeding three years in that other State on any remuneration for such teaching or research provided that such remunerations arise from the sources situated outside this State.

Article 17 STUDE~"TS AND TRAINEES

1. A student or business apprentice who, immediately before Vlsltmg 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 ta.x in that first-mentioned

Contracting State on payments made to him by persons residing outside that fIrst-mentioned Contracting State for the purpose orms maintenance, education or training. 3. An individual who, immediately before visiting a Contracting State is or was resident of the other Contracting State and who is temporary present in the fIrst-mentioned State for the purpose of study, research or training as a recipient of a grant, allowance or award from a scientifIc, educational, religious or charitable organization or under a technical assistance 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 18 DIRECTORS' FEES Directors' fees and similar payment 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 State may be taxed in that other State.

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

Article 20 GOVERNMENT SERVICES 1 a) Remuneration, other than a pension, paid by a Contracting State or a terri tori al- administrative 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. -T\ ­

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b )Notwithstanding the provisions of sub-paragraph a) of this paragraph, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: (i)

is a national of that State; or

(ii) did not become a resident ofthat State solely for the purpose of rendering the senrices.

a) Any pension paid by, or out of funds created by, a Contracting State or a territorial- administrative 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, l8 and 19 of this Agreement shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a territorial- administrative subdivision or a local authority thereof.

Artic1e 21

ARTISTS A.1W SPORTSMEN 1.

Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as a public entertainer, such as a theater, motion picture, radio or television artists, or a musician, or as an sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

Where income in respect of personal activities exercised by an entertainer or an sponsrnan in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding

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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. Notwithstanding the provisions of paragraphs 1 and 2 of this Article income derived from such activities perfonned within the frame work of cultural agreements concluded between the Contracting States are reciprocally exempted from tax only if such activities are sponsored by the Government of a Contracting State or financed by public fund of both Contracting States and the activities are not carried out for the purpose of profits.

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Article 22 OTHER INCOME

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1. Items of income of a resident of a Contracting State, wherever arising, which are not expressly dealt within the foregoing Articles of this Agreement shall be taxable only in that State.

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2. The provisions of paragraph 1 of this Article 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, or perfonns in that other State independent personal services from a fixed base siruated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

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Article 23 CAPITAL

Capital represented by immovable property as defmed in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other Contracting State. Capital represented by movable property forming part of the business property of a permanent estabiishment 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

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independent personal services, may be taxed in that other Contracting State. 3.

Capital represented by ships, aircraft and road vehicle operated by enterprise of a Contracting State in international traffic and by movable property pertaining to the operation of such ships, aircraft or road vehicle shall be taxable only in that Contracting State.

All other elements of capital of a resident of a Contracting State shall be taxable only in that State. Article 24

METHODS OF ELIMINATION OF DOUBLE TAXATION 1.

Where a resident of a Contracting State derives income or ov.IJlS property which, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on income and on capital of that resident, an amount equal to the income tax and capital paid in that other State.

Such deductions in either case shall not exceed that part of income tax or capital, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in that other State.

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Where in accordance with any provision of the Agreement income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capitaL

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For the purposes of paragraph 1 of this Article, profits income and capital gains owned by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Agreement shall be deemed to arise form sources in that other Contracting State.

Where the amount of tax exempted or reduced under cenain special incentive measures provided by domestic legislation of a Contracting State is deemed to have been paid in Contracting State, then it shall become deductible from tax of the other Contracting State.

Article 25 NON - DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected taxation therewith, which is other or more burdensome than the other State and connected requirements to which nationals of that in the same circumstances in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.
2. The taxation on a pennanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be the taxation levied on less favourably levied in that other State than the same activities. This enterprises of that other State carrying on provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs or reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.
3. Stateless persons who are residents of a Contracting State shall not be subjected in either 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 the State concerned in the same circumstances are or may he subjected.
4. Except where the provisions of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of detennining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable property of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

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5.

Enterprises of a Contracting State, the capital of which is wholly or by one or more partly owned or controlled, directly or indirectly, 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 ML~UALAGREEMENTPROCEDURE

1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this 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 I 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 notiftcation of the action resulting in taxation not in accordance with the provisions of the Agreement.
2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement. They may also

consult together for the elimination of double taxation in cases not provided for in the Agreement. 4. 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.

Artiele27 EXCHANGE OF INFORM.4.TION _~

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by the Agreement insofar as the taxation thereunder is not contrary to the Agreement. The exchange of infonnation is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as infonnation obtained under the domestic laws of that State and shall be disclosed only to persons or authorities. including courts and administrative bodies, concerned with the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes 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 1 be construed so as to impose one of either 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 (orclre public). Article 28 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 29 ENTRY INTO FORCE Each of the Contracting States shall notify to the other through diplomatic channels the completion of the procedures required by its law for the bringing into force of this Agreement. This Agreement shall enter into force on the date of the later of these notifications and shall thereupon have effect : a)

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in respect of taxes withhe1d at source, to income derived on or after 1 January in the calendar year next following that in which the Agreement enters into force;

b) in respect of other taxes, to such taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following that in which the Agreement enters into force. c)

Article 30 TERMINATION This Agreement shall remain in force until terminated by one of the Contracting States. Either Contracting State may terminate the Agreement, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year beginning after the expiration of five years from the date of entry into force of the Agreement. In such event, the Agreement shall cease to have effect: -1",­

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in respect of taxes withheld at source, to income derived on or after 1 January in the calendar year next following the year in which the denouncement notice is given;

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in respect of other taxes, to such taxes chargeable for any tax year beginning on or after 1 January in the calendar year next following that in which the denouncement notice is given. In witness whereof the undersigned, duly authorised thereto have Signed this Agreement.

Done in duplicates atTnMa.kJ this bltf.':;J day of l, -I.'!.::?-<:J in the Uzbek, Arabic and English languages, all texts being equally authentic. In case of divergence in interpretation English text shall prevail.

For the Government of the United Ara

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For the Government of the Republic of Uzbekista

PROTOCOL At the moment of signing the Agreement between the Government of the United Arab Emirates and the Government of the Republic of Uzbekistan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital, the undersigned have agreed that the following provisions shall form an integral part of the Agreement. 1. It is understood that, in the case of Uzbekistan, the "tax on capital referred to in the Preamble and other Articles of this Agreement means property tax of Uzbekistan. II

2. For the purpose of paragraph I of Article 4, the term "resident" in the case of the U .A.E. shall include: a) the Federal Government of the United Arab Emirates or any territorial-administrative subdivision, local authority or local governments thereof; b) any governmental institutions created under public law such as the Central Bank, the government funds, corporations, authorities, foundations, agencies or any other similar entities established in the United Arab Emirates; and c) any inter-governmental entity established in the United Arab Emirates in whose capital the United Arab Emirates subscribes together with other States.

Ad Article 7: Nothing in this Agreement shall affect the right of the Government of the United Arab Emirates, its territorial- administrative subdivision or local authorities to apply its own laws related to the taxation of income derived from the petroleum and natural resources. Such activities will be taxed according to the laws of the United Arab Emirates.

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Ad Article 12 paragraph 2: It is understood that the tenn "royalties" does not include payments in respect of the operation of mines or quarries or the exploitation of natural resources.

with reference to the entire Agreement, it is agreed that any income and profits derived by the Government of a Contracting State, its territorial administrative subdivisions and local governments or its investments of fmancial institutions, including gains from the alienation of movable and immovable property situated in that other State, shall be exempt from taxes on such income, profits and gains levied on that other Contracting State.

Done in duplicate att~h.~~.~\ The t.n..... day of..... 2001:., in the Uzbek, Arabic and English languages, all texts being equally authentic.

fu the case of divergence of interpretation, the English text shall prevaiL

For the Government of The United Arab Emirates

For the Government of The Republic of Uzbekistan