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Law On The Conclusion Of Double Taxation Treaty Between Denmark And Israel

Original Language Title: Lov om indgåelse af dobbeltbeskatningsoverenskomst mellem Danmark og Israel

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Table of Contents

Appendix 1

Promise of the conclusion of the double taxation agreement between Denmark and Israel

We, by God's grace, the Queen of the Danes, do our thing.

The parliament has adopted the following law, and we know that the following law has been approved by Parliament's consent :

§ 1. The Agreement of 9. In September 2009, between the Government of the Kingdom of Denmark and the Government of Israel to avoid double taxation and the prevention of tax evasion, as far as income taxes are concerned, it may be drawn on behalf of Denmark. The Agreement is included in Annex 1 to this Act.

Paragraph 2. The Agreement shall enter into force and shall apply in Denmark following the provisions of Article 29 of the Agreement.

Paragraph 3. The Agreement between the Government of the Kingdom of Denmark and the Government of Israel to avoid double taxation and the prevention of tax evasion as regards income tax and property taxes, signed on to the 27. June 1966 is repealed and its provisions cease to have effect in accordance with the provisions of Article 29 (1). 3, in the Agreement referred to in paragraph 1. 1.

§ 2. People, like the 9th. September 2009 was a resident of Israel and, at this time, pensions received, social services and similar payments that could be taxed in Denmark pursuant to Article 17 of the Convention referred to in paragraph 1 (1). 1, shall be exempt from taxation in Denmark of the amounts in question if such amounts are to be paid pursuant to Article 17 or Article 21 of the Agreement referred to in Section 1 (1). Three, only to be taxed in Israel.

Paragraph 2. Tax exemption pursuant to paragraph 1. 1 shall cease if the person concerned ceases to be resident in Israel or where pensions, social services and similar payments referred to in paragraph 1 shall be discontinued. 1, cease. However, this does not apply if the right to a service ends and is replaced by the right to another service in the immediate extension thereof.

Paragraph 3. Exclution may not be granted after paragraph 1. 1 if the derogation has been removed in accordance with paragraph 1. 2.

§ 3. The law shall enter into force on 1. December, 2009.

§ 4. The law does not apply to the Faroe Islands and Greenland.

Givet on Amalienborg, the 20th. November 2009Under Our Royal Hand and SeglMARGRETHE R ./ Kristian Jensen

Appendix 1

AGREEMENT

BETWEEN THE KINGDOM OF DENMARK AND THE GOVERNMENT OF THE STATE OF ISRAEL TO AVOID DOUBLE TAXATION AND PREVENT TAX EVASION AS REGARDS INCOME TAXES

The Government of the Kingdom of Denmark and the Government of Israel,

which wish to conclude a collective agreement to avoid double taxation and prevent tax evasion as regards income taxes ;

has agreed to :

ARTICLE 1

Persons covered by the Agreement

This Agreement shall apply to persons belonging to one or both of the Contracting Governments.

ARTICLE 2

Taxes covered by the Agreement

This Agreement shall apply to taxes on income printed on behalf of a Contracting Government or its political subdivisions or local authorities, without regard to how they are charged.

2. As taxes on income, all taxes levied on all income or part of the income, including taxes on the disposable or property of immovable or immovable property, shall incubated the total salary sum paid by undertakings, and as taxes on wealth increment.

3. The applicable taxes applicable to the Agreement shall be :

a) In Denmark :

i) the income tax for the State ;

(ii) the municipal income tax,

(hereinafter referred to as ' Danish tax `).

b) In Israel :

i) income tax and corporation tax (including taxes on capital gains), and

(ii) tax on profits by disposing of property in accordance with the laws on the taxation of immovable property,

(hereinafter referred to as 'Israeli tax').

The Agreement shall also apply to taxes of the same or substantially the same species, which, after the date of agreement, is printed as a supplement to or instead of the applicable taxes. The competent authorities of the Contracting Parties shall inform each other of significant changes made in their tax legislation.

ARTICLE 3

Common definitions

1. Except as otherwise in the context of the context, the following terms have been expressed in the following Agreement :

a) The terms ' a Contracting Government ` and ' the other Contracting Government ' means Denmark or Israel, as well as the context.

b) The term ' Denmark ` means the Kingdom of Denmark, including any area outside Denmark's territorial waters which, in accordance with international law and according to Danish law, may or later have been designated as an area within which Denmark the ability to exercise sovereignty rights in the field of investigation and exploitation of natural deposits at the bottom of the sea or in its underground waters and with regard to other activities for the purpose of investigation and economic exploitation of : the area. The term does not include the Faroes and Greenland.

c) The term "Israel" means the State of Israel and covers in a geographical sense the territory of the State of Israel's right to tax, including its territorial waters and the waters adjaculled to the external border of the territorial waters, and the marine bottom and subsoil of such areas, over which State of Israel, in accordance with international law and the laws of the State of Israel, exercise sovereignty or other rights and jurisdiction.

d) The term ' person ` includes a natural person, a company, a fund and any other group of persons.

(e) The term "company" means any legal person or entity which is treated as a legal entity in fiscal terms.

(f) The term ' undertaking ` shall be used in any form of a business exercise.

g) The terms ' operation of a Contracting Government ' and ' undertaking in the other Contracting Government ' means an undertaking operated by a person resident in a Contracting Government and an undertaking operated by a person who is a person who is is established in the other Contracting Government.

(h) The term ' international traffic ' means any transport by ship or aircraft used by an undertaking which has its true seat in a Contracting Government except where the ship or the plane is used exclusively between places in : the other Contracting Government.

i) The term ' competent authority ` means :

i) in Denmark : the tax minister or his representative delegate,

(ii) in Israel : the Minister for the Finance or his authorized representative.

j) The term "citizen" means :

i) any natural person who has the birthright of a Contracting Government ;

(ii) any legal person, stakeholder or association, which consists in force of the laws in force in a Contracting Government.

c) The term ' business activity ` includes the exercise of free trade and of the other activities of an independent nature.

2. The application by a Contracting Government of the Agreement to each time shall be subject to the importance given to it by the relevant legislation at the time in the legislation of the State concerned, unless otherwise provided by the Agreement. the taxes applied by the Agreement, as any matter in the tax havens used in this state, must precaride the importance of this term in other places in the legislation of this State.

ARTICLE 4

Tax Home

1. In this Agreement, the term ' means a person belonging to a Contracting Government ' shall mean any person under the law of that State as a result of the place of residence, registered office, company registration, seat of management, or any other criteria of a similar nature, including that State and any associated political subsection or local authority. However, this expression does not include a person who is taxable in this state only of income from sources in this state.

2. A legal person resident in a Contracting Government under the legislation of this State and which is generally exempt from taxation in this State shall be deemed to have been established in this Contracting Party, in the application of this Agreement ; State.

3. If a natural person after the provisions of paragraph 1 is established in both Contracting Governments, his status shall be determined in accordance with the following rules :

a) He shall be considered only to be the resident of the State where he has a permanent residence at his disposal. If he has a permanent residence at his disposal in both states, he shall be considered to be a resident of the State with which he has the strongest personal and economic relations (the centre of his life interests).

b) If it cannot be decided in which state he has the centre of his life interests, or if he does not have a permanent residence in any of the Member States, he shall be considered only to be at home in the state in which he usually has a stay.

c) If he usually has a stay in both countries or if he does not have such a residence in any of them, he shall be considered only to be the resident of the State where he is a national.

d) If he is a national of both States or if he is not a citizen of any of them, the competent authorities of the Contracting Parties shall decide the question by mutual agreement.

4. If a non-physical person, in accordance with paragraph 1 of paragraph 1, is established in both Contracting Governments, it shall be considered only to be resident in the State in which its true management has its seat.

Article 5

Fixed operational location

1. In this Agreement, the term ' firm operating location ' means a regular business location by means of an undertaking ' s undertaking wholly or in part.

2. The term ' firm operating location ` shall comprise in particular :

a) a place from which an undertaking is led,

b) a branch,

c) an office,

d) a factory,

(e) a workshop ; and

(f) a mine, an oil or gas source, a quarry or any other place where natural occurrences are to be extracted.

3. a building site or installation or installation, or an installation, a drilling or a ship used in the investigation of natural occurrences, is only a fixed operating point where the business is in more than 12 months. The activity of an undertaking linked to another undertaking shall be deemed to have been exercised by the undertaking, which is linked to the establishment of the undertaking concerned ;

a) the substance of the latter is essentially the same as that of the latter undertaking ; and

b) are employed by the same project or the same operation ;

unless the activities concerned are carried out simultaneously. For the purposes of this paragraph, undertakings shall be deemed to be connected when the same persons, directly or indirectly, are part of the management of the control or capital of the undertakings.

Notwithstanding the previous provisions of this Article, ' regular farm ` shall not be considered to include :

a) the use of the information solely for the purposes of storage, exhibition or delivery of the goods of the undertaking ;

b) the maintenance of a stock associated with the purpose of storage, exhibition or delivery,

c) the maintenance of a stock related to the operation solely for the purposes of processing operations in another undertaking,

d) maintaining a firm business location solely for the purpose of making purchases of goods or collecting information for the undertaking,

(e) maintaining a firm business location solely for the purpose of exercising any other undertaking of preparatory or remedial operations ;

(f) maintaining a firm business location solely to exercise any combination of the activities referred to in (a) to (e), provided that the overall business of the business as a result of this combination is of preparatory or a correcting character.

5. If a person who is not an independent representative, as mentioned in paragraph 6, is acting on behalf of a business and this person in a Contracting Government, and usually carries out a power of attorney to conclude contracts in the name of the operation, this must be done ; the undertaking, notwithstanding the provisions of paragraphs 1 and 2, shall be deemed to have a fixed operating facility in this State in respect of any undertaking which this person undertakes, unless this person is limited to such activity, which : has been mentioned in paragraph 4 and which, if carried out by means of a permanent place of business, would not make this solid ; a business location for a firm operating point in accordance with the provisions of this paragraph.

6. An undertaking shall not be deemed to have a permanent operation in a Contracting Government, simply because it operates in this State by means of a mediator, Commission or any other independent representative, provided that such persons act ; within the framework of their customary business activities.

7. the fact that a company belonging to a Contracting Government shall check or be checked by a party belonging to the other Contracting Government, or which operates in this other State (whether or not engaged in the State) ; by means of a fixed operating facility or otherwise, one of the companies is not considered to be a firm operating facility for the other.

ARTICLE 6

Income of immovable property

1. Income, as a person belonging to a Contracting Government, the acquiring of real estate (including the income of land or forestry) situated in the other Contracting Government may be subject to tax in this other state.

2. The term ' immovable property ` shall have the same meaning as it has in the legislation of the Contracting Government where the property is situated. In all cases, the expression shall include accessories to immovable property, crew and tools used in land and forestry, rights on which the provisions of civil law on land use shall apply, the right of use to immovable property and the right to access ; variable or flat-rate payments as remuneration for the exploitation of, or the right to use, mineral deposits, sources and other natural occurrences. Ships, boats and aircraft are not considered to be immovable property.

3. The provisions of paragraph 1 shall apply to income derived from direct use, renting or use in any other form of immovable property.

4. The provisions of paragraph 1 and 3 shall also apply to the income of fixed property belonging to an undertaking.

Article 7

Deserts on business

1. Profit to be paid by an undertaking in a Contracting Government may only be taxed in this state unless the undertaking operates in the other Contracting Government by means of an established operating location. In the case of the operator of the operator, the profit of the undertaking may be taxed in the other state, but only the part thereof which may be attributed to this firm operating location.

2. If an undertaking in a Contracting Government operates in the other Contracting Government through an established operating location, then, except in paragraph 3, the provisions of paragraph 3 shall result in other, in each Contracting Government, to this fixed ; the operation takes place the profit which it could be expected to achieve if it had been a free and independent undertaking engaged in the same or similar undertaking on the same or similar conditions, and which, under the conditions of such conditions, were carried out ; relationships did business with the operation of which is a firm operating facility.

3. The establishment of a fixed operating spot may be deductible at the costs incurred for the fixed operation, including the management and administration of the administration, whether the costs incurred in that State ; where the fixed operating location is situated or elsewhere.

4. If it has been customary in a Contracting Government to employ the profit of a fixed operating site on the basis of a breakdown of the total profits of the undertaking between its various departments, nothing shall be prevented by paragraph 2 ; this Contracting Government to employ the taxable profit on the basis of such a common distribution. However, the chosen distribution method must be such that the result will be in accordance with the principles laid down in this Article.

5. No profit should be carried out to a fixed operating point simply because this fixed operation has carried out the purchase of goods for the undertaking.

For the purposes of applying the preceding paragraphs, the profits being carried out to the permanent farm shall be replaced by the same year, unless there is good and full reason for using a different approach.

7. If revenue includes income as referred to in other articles of this Agreement, the provisions of these other articles shall not be affected by the provisions of this Article.

ARTICLE 8

Fortyonly on international traffic

1. Profit for operation of ships or aircraft in international traffic can only be taxed in the Contracting Government where the real management of the enterprise has its seat.

2. If a company has its actual management seat on a ship or a boat, the seat of the tenant shall be deemed to be in the Contracting Government where the ship ' s home port is situated or, if there is no such homeland, in the Contracting Government, where the one who drives the ship is based.

For the purposes of applying this Article, the following shall be the subject of the following benefit from the operation of ships or aircraft in international traffic :

a) Deserts by the rental of ships or aeroplanes with a crew ("hour" or "voyage").

b) Profit for rental of ships or aeroplanes without crew ("bareboat") if the rental income is close to the profits of ships or aircraft in international traffic.

4. Profit for use, on-call or rental of containers (including trailers, barges and similar equipment for the carriage of containers) used for the carriage of goods in international traffic may only be taxed in the Contracting Government ; where the real-life management of the undertaking has its seat.

5. The provisions of paragraph 1 (4) shall also apply to profits by participating in a pool, a business community or an international operation organisation.

6. If the undertakings from different countries have joined together to drive ships or aircraft in international traffic through a business consortium, the provisions of this Article shall apply only to that part of the profit corresponding to that part of the consortium owned by an undertaking in a Contracting Government.

Article 9

Bundling Undertaking

1. If

a) an undertaking in a Contracting Government, directly or indirectly, in the management of, control of, or capital of an undertaking in the other Contracting Government, or

b) the persons directly or indirectly participate in the management, control of, or capital of both an undertaking in a Contracting Government and in the other Contracting Government,

and in some of these cases between the two undertakings, they have been agreed or set out in terms of their business or financial relations that deviate from the terms and conditions agreed between independent undertakings, may any profit which, if these conditions had not been in place, would have been attributed to one of these undertakings, but which, because of these conditions, has not been added to this, shall be taken into account by the profit of this undertaking and shall be taxed accordingly.

2. If a Contracting Government to the profit of a undertaking in the State of this State is included-and in accordance with it, the tax of the other Contracting Government has been taxed by this other State, and so on. profit margin, which would have been taken to the operation of the former State, the conditions which have been established between the two undertakings would have been the same as that would have been agreed between independent undertakings, shall be the same ; the second state shall make an appropriate adjustment to the tax amount calculated by the profit. The other provisions of this Agreement and the competent authorities of the Contracting Parties shall, where necessary, consult each other, shall take due account of the other provisions of this Agreement and, if necessary, consult each other.

Article 10

Exbooty

1. Exboots paid by a party belonging to a Contracting Government to a person belonging to the other Contracting Government may be subject to tax in this other state.

However, this yield may also be taxed in the Contracting Government where the company paying out the proceeds is based, and in accordance with the law of this State, but where the legal owner of the proceeds is established in the other Contracting Party ; Member States shall not, therefore, be more than :

a) 0%. of the gross amount of the yield if the rightful owner is a company (excluding a stakeholder), which directly or indirectly owns a minimum of 10%. of the capital of the undertaking which pays the proceeds, and this proportion is owned for a period of at least one year within which the yield is imploded.

b) 0%. for the gross amount of the proceeds where the legal owner is the other Contracting Government or of the central bank of the State or of any public authority or other public body (including a financial institution) owned or controlled by : The government of this other state.

c) 0%. of the gross amount of the yield if the rightful owner is a pension fund or similar institution which provides for pension schemes to which natural persons are able to be able to make safe retirement provision when such pensions are provided ; the other similar institution has been established, tax-recognised and controlled in accordance with the law of this other State.

d) 10%. of the gross amount of the yield in all other cases.

The competent authorities of the Contracting Parties shall set out by mutual agreement the detailed rules for the implementation of these restrictions.

This paragraph shall not affect access to taxing the company of profits from which the yields are paid.

3. The term ' yield ` means the income of shares, 'jouissance' shares or 'jouissance' rights, those of mine agents, the units or other non-debt entitlements and which give the right to share in profits ; as well as the income of other company rights, which have been subject to the same tax treatment as the income of shares in accordance with the law of the State in which the company that carries out the encoding is based.

4. The provisions of paragraph 1 and 2 shall not apply where the rightful owner of the provider, which is indigenous to a Contracting Government, operates in the other Contracting Government where the profit-paying company is indigenous, through a there is a fixed operating site and the stock holding which is based on the payment of the proceeds shall have a direct connection with such a fixed operation location. In this case, the provisions of Article 7 shall apply.

5. If a company belonging to a Contracting Government acquires profits or income from the other Contracting Government, then the other Member State may not impose any tax on the benefits provided by the company, unless the proceeds are paid ; a person resident in this other State, or unless the shareholding which is based on the payment of the proceeds, has a direct connection with a fixed farm operating in this other State, or to the company of the company, or non-unloaded profits on the company's non-defledable profits, even though it is : derive profit or not, wholly or partially, of profit or income derived from that other state.

Article 11

Interesters

1. Rents originating from a Contracting Government and shall be paid to a person resident in the other Contracting Government may be subject to tax in this other state.

2. (a) Such interest may, however, also be taxed in the Contracting Government from which they originate and in accordance with the law of this State, but if the rightful owner of the interest is situated in the other Contracting Government, the tax on which it is not imposed shall be : exceed 5%. the gross amount of the interest rate of interest.

(b) A person who is resident in a Contracting Government may instead of the tax that would be imposed on the income of (a), to be taxed by its interest income, as though this revenue income was income in business and should be taxed, in accordance with Article 7. The competent authorities of the Contracting Parties may lay down reasonable rules on the recruitment and reporting of taxable income. Each competent authority may also lay down procedures to ensure that a person who acquires interest income, presents such books and accounting records necessary to hire the correct tax amount.

Notwithstanding the provisions of paragraph 1 and 2, interest which origination from a Contracting Government shall be exempt from taxation in this State where they are paid :

for a pension fund, which is the home of the other Contracting Government,

to a person belonging to the other Contracting Government concerning professional bonds traded on a stock exchange in the former state, issued by a party belonging to this State,

to the Government of the other Contracting Government, a related political subsection or by local authority or the central bank of this State, in respect of any loans, debt debt or credit granted by such bodies,

in the case of a loan, debt debt, or credit, guaranteed or secured by an institution which is responsible for securing or financing international commercial transactions, which are fully owned by the other Contracting Government.

4. The term ' interest ` means in this Article income of debt claims of any kind, whether they are protected by the immovable property or not, and whether they contain a right to a proportion in the debtor's profit or not, and in particular the income of : State debts and the income of debt securities or depreciation, including agiobelation and gains associated with such debt certificates, bonds or depreciation.

5. The provisions of paragraph 1 and 2 shall not apply where the rightful owner of the interest belongs to a Contracting Government by the other Contracting Government of which interest is derived from the interest of the interest of the interest of the interest of the interest of the interest of the interest of the interest of the interest of its interest. the place of operation and the debt which is due to the interest paid shall be directly related to such a fixed operating facility. In this case, the provisions of Article 7 shall apply.

6. Rents are considered to be derived from a Contracting Government when they are paid by a person resident in this state. If the person who pays interest rates, whether he is the resident of a Contracting Government or not, has a fixed operation location in a Contracting Government for which the debt ratio, the interest rate paid, was the diocese, and such interest whereas such an interest shall be deemed to be incumcred from the state in which the fixed operating location is situated.

7. If a special connection between the person who pays interest and the rightful owner or between them and a third person has caused the interest to be seen in relation to the debt debt in respect of which they are paid exceeds the amount which would be The provisions of this Article shall apply only to the latter amount, as agreed between the paying and the rightful owner, as provided for in this Article. In this case, the excess amount may be taxed in accordance with the legislation of each Contracting Government, taking into account the other provisions of this Agreement.

Article 12

Royalties

1. Royalties resulting from a Contracting Government and whose rightful owner is established in the other Contracting Government may only be taxed in this other state.

2. The term "royalties" means in this Article payments of any kind received as payment for the use, or the right to use, any copyright to a literary, artistic or scientific work, including feature films, any such concept ; patent, trade mark, pattern or model, drawing, secret formula or method of manufacture, or for information on industrial, commercial or scientific experience.

3. The provisions of paragraph 1 shall not apply where the legal owner of the royalty amount belongs to a Contracting Government, operates in the other Contracting Government, from which the royalty amount originates, through one situated in the territory of the Contracting Party ; fixed operating site, and the right or property of the assets paid out of royalties shall be directly related to such a fixed operating site. In this case, the provisions of Article 7 shall apply.

4. If a special connection between the person who pays royalties and the rightful owner or between them and a third person has caused the amount of the royalty to be seen in relation to the use, privilege or information, for which it has been paid ; in excess of the amount which would have been agreed between the paying and the rightful owner, where such a connection had not been provided, the provisions of this Article shall apply only to the latter amount. In this case, the excess amount may be taxed in accordance with the legislation of each Contracting Government, taking into account the other provisions of this Agreement.

ARTICLE 13

Capital gains

1. Profit, as a person belonging to a Contracting Government, the transferee of the immovable property as referred to in Article 6, which is situated in the other Contracting Government, may be subject to tax in this other state.

2. Proceeding by Disposal of the Pipe Property, which forms part of the business asset in a fixed operating facility in a Contracting Government, in the other Contracting Government, including the profit of the disposal of such a fixed operating location, (separately or jointly with the entire undertaking) may be taxed in this other state.

3. Proceeding to the disposal of ships and aeroplanes used in international traffic, or by any movable property associated with the operation of such ships or aircraft, may only be taxed in the Contracting Government where the real management of the enterprise has its own seat.

4. Proceeding to the disposal of containers (including trailers, barges and similar equipment for the transport of containers) used for the carriage of goods in international traffic may only be taxed in the Contracting Government where the actual operation of the undertaking is carried out ; Leadership has its seat.

5. Profit, as a person belonging to a Contracting Government, the transferee of shares, the value of which is of more than 50%, directly or indirectly derived from property situated in the other Contracting Government, may : taxed in this other state.

6. Proposal for the disposal of all other assets other than those referred to in paragraph 1, 2, 3, 4 and 5 may only be taxed in the Contracting Government where the disposable person is the resident, provided that this person is the rightful owner of such products ; capital gains.

7. If the undertakings from different countries have joined the operation of ships or aircraft in international traffic through a business consortium, the provisions of paragraph 3 shall apply only to the part of the profit corresponding to that part of the consortium owned by an undertaking in a Contracting Government.

8. If a person resident in a Contracting Government is established in the other Contracting Government and the former Contracting Government shall tax the unrealized capital gains on this person ' s property at the time of the date of the date of the date of the party ; they are resident in the other Contracting Government, capital gains from before the date in which the person in question became resident in the other Contracting Government shall not be taxed in this other Contracting Government later on ; Disposal of such property.

ARTICLE 14

Income from personal work in employment relations

Subject to the provisions of Articles 15, 17 and 18, other charges may be paid, salary and other similar charges acquired by a person resident in a Contracting Government for personal work, only subject to taxation in this State, except where : the work has been carried out in the other Contracting Government. If the work has been carried out there, it may be taxed in this other state.

Notwithstanding the provisions of paragraph 1, payment acquired by a person resident in a Contracting Government for personal work carried out in the other Contracting Government shall be taxed only in the first state if :

a) the consignee resides in one or more periods which together does not exceed 183 days in a 12-month period commensurate or ends in that fiscal year, and

b) the remuneration is paid for by or for an employer not resident in the other State ; and

c) the remuneration is not borne by a fixed operating facility in the other Member State.

3. Notwithstanding the previous provisions of this Article, payment for personal work carried out on board a ship or aircraft used in international traffic of an undertaking in a Contracting Government shall be subject to taxation in the State where the undertaking Real management has his seat.

Article 15

Constyliorar management

Administrative orars and other similar charges obtained by a person resident in a Contracting Government, in his capacity as a member of a company belonging to the other Contracting Government, may be taxed in this Second state.

Article 16

Artists and sportsmen

Notwithstanding the provisions of Articles 7 and 14, income acquired by a person resident in a Contracting Government as performers such as theatre, film, radio or television shows, or musician or sportsmen or as a sportker or as a sportker, personally engaged in activities as such in the other Contracting Government shall be subject to taxation in this other state.

2. If the income of personal business practised by performers or sportscasts does not belong to the artist or the sportsman himself, but a different person, this income may, notwithstanding the provisions of Articles 7 and 14, are taxed in the Contracting Government in which the activity of the artist or the sportsmen or sportsmen is exercised.

3. The provisions of paragraph 1 and 2 shall not apply to income acquired by the establishment in a Contracting Government of artists or sportsmen, if the visit to this State is wholly or principally supported by one or both of them ; Contracting Governments or any political sub-departments or local authorities or by an institution recognised by one or both of the Contracting Parties as a non-useful institution.

Article 17

Pensions, social services and similar payments

1. Payments as a natural person resident in a Contracting Government shall receive, in accordance with the social security law of the other Contracting Government or by any other scheme from the funds provided for by this other State or of any other Member State, the relevant political subsection or local authority may be taxed in this other state.

2. Without prejudice to the provisions of paragraph 1 of this Article and in Article 18 (2), other, pensions may, and other similar remuneration, originators from a Contracting Government and be paid to a person resident in the other Contracting Party ; State, whether this is done for earlier services or not, only taxed in this other state. However, pensions and other similar charges may be taxed in the first Contracting Government if :

contributions paid by the beneficiary to the pension scheme were deduced in the recipient ' s taxable income in the former Contracting Government under the law of this State ; or

contributions paid by an employer were not a taxable income for the beneficiary of the former State in accordance with the law of this State.

3. Pensions are deemed to be derived from a Contracting Government if they are paid by a pension fund or other similar institution providing pension schemes to which natural persons can join in order to secure retirement benefits when : such pension fund or other equivalent institution has been established, tax-recognised and controlled in accordance with the law of this State.

Article 18

Publicity

1. (a) Gage, salary and other similar remuneration, except for pensions paid by a Contracting Government or to a related political subsection or local authority to a natural person in charge of the post office of this State or subsection or authority may be taxed only in this State.

b) However, such fees, salaries or other similar charges may only be taxed in the other Contracting Government if the contract is carried out in this state, and the person concerned is one of the following State, as :

i) is a citizen of this State ; or

(ii) were not indigenous in this state solely for the purpose of performing the enquired.

2. (a) Any pensions paid by a Contracting Government or any related political subsection or by local authority, or from the funds provided for, to a natural person to carry out the task of this State or subsection, or The authority may only be taxed in this State.

b) However, such a pension may only be taxed in the other Contracting Government if the consignee is a resident of and a national in that State.

3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, salaries and other similar charges, and on pensions paid for the performance of the business operations carried out by a Contracting Government or by a Contracting Government ; belonging to a political subsection or by local authority.

Article 19

Students

Amount, as a student or apprentice, which is, or immediately before visiting a Contracting Government, was in the other Contracting Government and which resides in the first-mentioned state exclusively in study or training purposes ; in the case of his subteam, study or training, do not be taxed in this state subject to the assumption that such amounts derive from sources outside this state.

Article 20

Other income

1. Income, acquired by a person resident in a Contracting Government which has not been processed in the prior articles of this Agreement, irrespective of where they originated, only be taxed in this state.

2. The provisions of paragraph 1 shall not apply to income, with the exception of the income of real estate as defined in Article 6, paragraph 2, if it is operating in the other by a Contracting Government of such income ; Contracting Governments through a holding fixed operating location, and the right or property of the income of the paid income is directly related to such a fixed operating facility. In this case, the provisions of Article 7 shall apply.

Article 21

Repeal of double taxation

Double taxation must be avoided in the following manner :

1. In Denmark :

Where a person resident in Denmark acquires income which, according to the provisions of this Convention, taxed in Israel, unless the provisions of point (c) are to be subject to other provisions, Denmark shall reduce the tax of the person concerned ; the income of an amount equal to the income tax paid in Israel.

However, this deduction may not exceed that part of the income tax calculated before the deduction may be attributed to the income tax which may be taxed in Israel.

If a person belonging to Denmark acquires income which, according to the provisions of this agreement, can only be taxed in Israel, Denmark may include this income in the taxable amount, but must reduce income tax with the part which may be attributeable to the income derived from Israel.

2. In Israel :

If a person belonging to Israel acquires income which, according to the provisions of this Agreement, is subject to tax in Denmark, Israel (subject to Israel ' s legislation relating to relief for foreign taxes, must not be taxed, which shall not be required ; touch on the general principle contained in this paragraph) shall reduce the income tax of the person concerned by an amount equal to the income tax paid in Denmark.

However, this deduction may not exceed that part of the income tax calculated before the deduction may be attributed to the income tax which may be taxed in Denmark.

Article 22

Non-discrimination

1. Member State nationals of a Contracting Government may not be subject to any tax or related claims in the other Contracting Government which are different or more cumbersome other than the taxation and related requirements of nationals of this other ; state under the same conditions, in particular as regards its head office, is or may be subject to notification.

2. The taxation of a fixed farm operating in a Contracting Government of the other Contracting Government may not be less advantageous in this other state than the taxation of undertakings in this other state by the practice of the same establishment.

Subject to the provisions of Article 9, paragraph 1, Article 11, paragraph 7, or Article 12, paragraph 4, shall apply, interest, royalties and other payments made by an undertaking in a Contracting Government to a person resident in the Community ; the other Contracting Government, in the case of the establishment of such an undertaking, deductible tax deductible under the same conditions, which had been paid to a person resident in the former state.

4. The establishments of a Contracting Government whose capital is owned or controlled, directly or indirectly, by one or more persons belonging to the other Contracting Government, may not be subject to any of the former state ; the taxation or related requirements, which are different or more cumbersome than the taxation and related requirements laid down by other similar undertakings in the former or may be subject to the conditions of the latter.

Nothing in this Article may be interpreted in such a way that it obliges a Contracting Government to admit to persons who are not indigenous to this state, the personal or personal benefits, reductions and reductions that it grants to people who : are indigenous to its territory or to its nationals.

The provisions of this Article shall apply to the taxes referred to in Article 2 of this Agreement.

Article 23

Procedure for the conclusion of reciprocal agreements

1. If a person considers that the measures taken by one or both of the Contracting Governments of him may or may not comply with the provisions of this Agreement, he may, irrespective of the legal means, may or may not be in accordance with the provisions of this Agreement. they may be required by the internal legislation of these States, to submit to the competent authority of the Contracting Government where he is established or, where his case is subject to Article 22, paragraph 1, for the competent authority of the competent authority of the Contracting Party concerned, Contracting Government, where he is a national. The matter must be brought before three years from the date on which the first notification has been given to the measure resulting from a tax that is not in accordance with the provisions of this Agreement.

2. The competent authority must, where the notice appears to be justified, and if it is not itself able to reach a reasonable solution, the matter may seek to resolve the matter by mutual agreement with the competent authority of the other Contracting Government for the purpose of the latter ; to avoid taxation that is not in conformity with this Agreement. Any contract concluded shall be carried out without regard to the time limits laid down in the internal legislation of the Contracting Parties.

3. The competent authorities of the Contracting Parties shall seek mutual agreement to resolve any difficulties or doubts which may arise in the interpretation or application of this Agreement. They can also negotiate the avoidance of double taxation in cases not referred to in the Agreement.

4. The competent authorities of the Contracting Parties may enter directly to each other, including through a joint commissions composed of them themselves or their representatives, with a view to the conclusion of an agreement in accordance with them ; previous paragraphs.

5. If

a) Whereas, pursuant to paragraph 1, a person has submitted a case to the competent authority of a Contracting Government due to the fact that the measures taken by one or both of the Contracting Governments have led to taxation which are not in conformity with the provisions of this Agreement, and

b) the competent authorities shall not be able to agree to resolve this matter in accordance with the provisions of paragraph 2 within two years from the date on which the matter has been submitted to the competent authority of the other Contracting Government,

shall be subject to any unsolved questions relating to this matter, subject to arbitration, if the person requests this. However, unsolved questions should not be subject to arbitration if a decision on these matters has already been taken by a court or by a final administrative authority in one of the two States. Unless a person directly affected by the proceedings does not agree to the reciprocal agreement that carries out the arbitration, this recognition shall be binding on both Contracting Governments and shall be implemented regardless of the time-limits that apply to them, Member States ' internal legislation. The competent authorities of the Contracting Parties shall set out by mutual agreement the detailed rules for the application of this paragraph.

6. Section 5 shall apply from the date of an equivalent paragraph (arbitration) in an agreement to the avoidance of double taxation between Denmark and a third country having effect.

ARTICLE 24

Exchange of information

1. The competent authorities of the Contracting Parties shall exchange such information which is likely to be relevant to the implementation of the provisions of this Agreement or to the administration or enforcement of the Contracting Governments ; internal legislation relating to taxation applicable on behalf of the Contracting Governments or their political subdivisions or local authorities, provided that such taxation does not conflict with the agreement. The exchange of information shall not be restricted by Article 1.

2. Any information received by a Contracting Government after paragraph 1 shall be treated as secret in the same way as information provided under the internal legislation of this State and may be communicated only to persons or authorities ; (including courts and administrative authorities) engaged in the equation, collection, recovery, enforcement or prosecution in respect of, or complaints, in relation to the taxes of any kind and description. Such persons or authorities may use this information only for the purposes mentioned. You may communicate information to the public or to court rulings.

The provisions of paragraph 1 and 2 in no case may be interpreted in such a way as to impose an obligation on a Contracting Government to :

a)
to carry out administrative areas which are contrary to the laws and practices of this or other Contracting Government ;
b)
to carry out administrative areas which are contrary to the laws and practices of this or other Contracting Government ;
c)
to communicate information which would reveal any business, business, industrial, commercial or professional secret or method of manufacture, or if disclosure would dispute the general interest (order public).

4. If a Contracting Government asks for information in accordance with this Article, the other Contracting Government shall take steps to obtain the information requested, even though this other State may not have need for them ; information for its own tax purposes. The obligation laid down in the preceding period shall be subject to restrictions in paragraph 3, but in no case allows a Contracting Government not to provide information solely on the grounds that this State does not : himself has any tax interest in such information.

In no case, the provisions of paragraph 3 may be interpreted as allowing a Contracting Government to refuse information simply because the information is to be obtained from a bank, another financial institution, representative or the person who acts as a authorised person or as a guardian or because the information relates to ownership of a person.

ARTICLE 25

Aid for recovery of taxes

Member States shall assist each other in the recovery of tax requirements ; this assistance is not limited by Articles 1 and 2 ; the competent authorities of the Contracting Parties may, by mutual agreement, lay down detailed rules for the use of this aid ; Article.

2. The term ' tax requirements ` means a debit fee on taxes of any kind and name imposed on behalf of the Contracting Governments or their political subdivisions or local authorities as long as such taxation is imposed on the basis of such taxation ; are not in breach of this Agreement or with any other legal instrument to which the Contracting Governments are participants, as well as interest, administrative penalties and costs associated with recovery and the safeguarding of such amounts.

3. When a Contracting Government's tax requirements can be recovered from the legislation of this State and the person who owes it to the amount, not after the legislation of this State may object to recovery at this time, this tax claim shall be required to request from it ; The competent authority of this State shall be recognised by the competent authority of the other State for the recovery. The tax requirement shall be subject to the provisions of this second state, in accordance with the provisions of this second state applying to the recovery of tax requirements, as though the tax claims in question were the own tax requirements of this second state.

4. When a Contracting Government ' s tax requirement is such that, in accordance with its legislation, this State may take measures to ensure the recovery of the claim, this requirement must, at the request of the competent authority of this State, make this tax requirement at the request of the competent authority of the State ; be recognised by the competent authority of the other Contracting Government for the purposes of implementing such measures. This other state must take measures to ensure the tax requirement, in accordance with the provisions of this second state, as though the tax claims in question were the own tax requirements of this second state, regardless of whether the tax claim at the time, where the measures are implemented, they cannot be recovered in the first state, and whether the person who owes it may be disbursing the recovery.

5. A tax requirement recognised by a Contracting Government after paragraph 3 or 4, notwithstanding the provisions of paragraphs 3 and 4, shall not be subject to the time limits or given any preferential treatment which may apply to a tax requirement after this ; State law on the basis of the nature of the report. In addition, a tax requirement recognised by a Contracting Government after paragraph 3 and 4 shall not be subject to any preference which may apply to this tax requirement in accordance with the legislation of the other Contracting Government.

6. Finding the existence or validity of a Contracting Government's tax requirements, or the amount of the amount, cannot be brought before the courts or the administrative authorities of the other Contracting Government.

7. If a tax claim at a time after the submission of a request from a Contracting Government after paragraph 3 or 4, and before the other Contracting Government has recovered and transferred the relevant tax requirements to the former state, cease to be

a) in the case of a request in accordance with paragraph 3, a tax requirement in the former State which can be recovered from the legislation of this State and the person who owes it to the amount, at this time, in accordance with the law of this State, to object to : the recovery, or

b) in the case of a request in accordance with paragraph 4, a tax requirement in the former State in which, in accordance with its legislation, this State may take measures to ensure recovery,

the competent authority of the former State shall immediately inform the competent authority of the other State and, where the other State is chosen, the former State shall either put the request in the request or withdraw it.

The provisions of this Article may, in no case be interpreted, be interpreted as to the obligation of a Contracting Government to :

a) to carry out administrative areas which are contrary to the laws and practices of this or other Contracting Government ;

b) to take measures which would conflict with general interest (order public),

c) to provide assistance if the other Contracting Government has not implemented all reasonable measures for the recovery of the tax requirement, which may be carried out under the legislation or the management practices of that State ;

d) to provide assistance in cases where the administrative burden on this state is clearly not the target of the benefit which the other Contracting Government will achieve.

This Article shall enter into force on the date on which a contractual agreement between Israel and a third country incorporates a corresponding provision (aid for the recovery of taxes) is effective.

Article 26

Members of diplomatic representations and consular posts

Nothing in this agreement affects the tax benefits which members of diplomatic representations or consular offices enjoy in accordance with the general rules or agreements of the international law.

ARTICLE 27

Agreement Benefits Restriction

Notwithstanding the provisions of other articles of this Agreement, a person resident in a Contracting Government may not obtain the benefits resulting from reductions or exemptions for tax established by the Agreement in the other Contracting Party, state if the main objective or one of the main purposes of a transaction or an act by such a person or person connected with such a person was to obtain benefits under the Agreement.

2. The Agreement does not prevent a Contracting Government from applying its internal legislation relating to tax evasion and tax evasion.

Article 28

Territorial extension

1. This Agreement may, either in its entirety or with the necessary modifications, be extended to any part of Denmark's territory, which is specifically excluded from the scope of the agreement, or to any State or territory, for if : international relations Denmark is responsible, and which imposes taxes on a similar nature as those covered by the Agreement. Any such extension has effect from that date and is subject to such changes and conditions, including conditions concerning termination, which may be laid down and agreed between the Contracting Governments of notes to be exchanged by diplomatic means ; or in a different way, in accordance with their constitutional rules.

2. Unless the Contracting Governments agree otherwise, the termination of the agreement of one of the Parties pursuant to Article 30 shall also apply in the same manner as specified in that Article, the application of the Agreement to those parts of Denmark ' s territory or of those referred to in Article 30 ; States or areas to which it has been extended in accordance with this Article.

ARTICLE 29

Entry into force

The governments of the Contracting Governments of the Contracting Governments must, by diplomatic means, give each other a written notification that the conditions laid down in their legislation on the entry into force of this Agreement have been fulfilled.

2. The Agreement shall enter into force on the date of the last of the information referred to in paragraph 1 of paragraph 1 and its provisions shall take effect as regards taxes on the income resulting from the year on which the agreement is entered into : power, and for the following revenue.

3. The Agreement between the Government of the Kingdom of Denmark and the Government of Israel to avoid double taxation and the prevention of tax evasion as regards income tax and property tax is signed on the 27th. The date of June 1966 shall cease to have effect on any form of tax with effect from the date on which this Agreement will take effect on such tax in accordance with paragraph 1 and 2 of this Article and is hereby repealed on the last of these dates.

Article 30

Termination

This Agreement remains in force until it is terminated by a Contracting Government. Each Contracting Party may terminate the Agreement after the expiry of a period of five years from the date of entry into force of the Agreement by means of diplomatic means of giving the other Contracting Government the signature of the notice at least six months before the date of the entry into force of the Agreement ; Expired by a calendar year. In this case, the Agreement shall cease to have effect on taxes on the income resulting from the year on which the notification of termination has been made and the following revenue is received.

The President of the European Union has signed the Agreement, duly authorised by their respective governments, signed by this Agreement.

Done at two copies in Copenhagen on 9. September 2009, which corresponds to the 20th. Elul 5769 in the Hebrew calendar, Hebrew, Danish and English. In the event of a mismatch between the provisions of the agreement, the English text is crucial.

For the Government of the Kingdom of Denmark

Kristian Jensen

For the Government of Israel

Arthur Avnon

PROTOCOL

In the signing of the Agreement between the Government of the Kingdom of Denmark and the Government of Israel to avoid double taxation and prevent tax evasion as regards income taxes, the Government of the Kingdom of Denmark and the State of Israel shall be the Kingdom of Denmark and Israel ; Government agrees that the following provisions shall form an integral part of the Agreement :

1. in the case of Articles 6 and 10,

There is agreement that Article 6 and not Article 10 apply to income which a person belonging to Denmark receives from a real estate investment fund [ REIT ] (Real Estate Investment Trust pursuant to Article 64A3 of the Israeli State, income tax Regulation (income tax Regulation), which is indigenous to Israel.

Article 13 (2), Article 13 (2)

There is agreement that if the competent authorities in mutual agreement are seeking to decide on the issue of the level of capital gains attributed to one of the Contracting Governments in connection with the deflecting tax, then they must be taken. consideration of such factors as a fair trade value for the assets on the day on which the event that triggered the deflect tax was entered.

3. Tax emption

It is a condition that a person resident in a Contracting Government may facilitate the reduction of the tax authorities of the other Contracting Government that a settlement of residence has been submitted and signed by the tax authorities of the other Contracting Party ; the first Contracting Government.