Act On The Tax Treaty Between Denmark And Kuwait Reprinted Definitive Series

Original Language Title: Act on the tax treaty between Denmark and Kuwait Omtryk

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Overview (table of contents) Annex 1 The full text of the Act on the tax treaty between Denmark and Kuwait WE Margrethe the Second, by the Grace of God Queen of Denmark, hereby proclaim: The Folketing has passed and we have given our Royal Assent to the following Act: section 1. The provisions of the Agreement of 22. June 2010, the Kingdom of Denmark and Kuwait for the avoidance of double taxation and prevention of fiscal evasion with respect to two taxes on income and wealth, see. Annex 1, applies in this country. § 2. This Act comes into force after publication in the Official Gazette. PCS. 2. This Act shall apply from the time when the agreement referred in paragraph 1 in accordance with two Article 29 shall enter into force, and then have effect in accordance with Article 29 § 3. This Act does not apply to the Faroe Islands and Greenland. Given to Christiansborg Palace, May 2, 2011 Under Our Royal Hand and Seal Margrethe r./Peter C Annex 1 Agreement between the Government of the Kingdom of Denmark and the Government of the State of Kuwait for the avoidance of double taxation and prevention of fiscal evasion with respect to two taxes on income and wealth taxes The Government of the Kingdom of Denmark and the Government of the State of Kuwait promote mutual economic relations, wishing two city concluding observations in a convention for the avoidance of double taxation and prevention of fiscal evasion with respect to two taxes on income and on capital, have agreed as follows: Article 1 the person covered This Convention shall apply to person's who are residents of one or both of the Contracting States. Article 2 Taxes Covered 1. This Convention shall apply to taxes on income and on capital imposed on name of a Contracting State or of its political subdivisions or local authorities, irrespective of how they are levied. 2. As income and wealth taxes must be considered all taxes imposed on total income or capital or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or sala ries paid by enterprises as well as taxes on capital appreciation. 3. The existing taxes two which the Convention shall apply are in particular: a) in Kuwait: (i) the corporation tax (corporate income tax); (ii) the contribution from net profits of Kuwaiti stock owning companies payable to the Kuwait Foundation for the Advancement of Science (KFAS Group) (the contributions from the net profits of the Kuwaiti share-holding companies payable to Kuwait Foundation for the Advancement of Science (KFAS Group)); (iii) Zakat (Zakat); (iv) taxes imposed under the Act on support two national staff (the single support of national employee subjected tax law); (hereinafter referred to as "Kuwaiti tax"). (b)) in Denmark: (i) the income tax; (ii) the municipal income tax; (hereinafter referred to as "Danish tax"). 4. The Convention shall also apply to taxes of the same or substantially the same kind of a Contracting State after the date of signature of the Convention in addition to or in place of the existing taxes. The competent authorities shall notify Contracting States ' each other of any significant changes that have been made in their tax. Article 3 General Definitions 1. Unless the context otherwise requires, the following terms of this Agreement the meanings set out below: (a) the terms "a Contracting State)" and "the other Contracting State" mean, as the context requires, Kuwait and Denmark; (b)) the term "Kuwait" means the State of Kuwait's territory, including any area beyond the territorial sea which in accordance with international law and by Kuwaiti law is or may then be designated as an area in which Kuwait may exercise sovereign rights and jurisdiction; (c)) the term "United States" means the Kingdom of Denmark including any area outside the territorial waters of Denmark, in accordance with international law and under Danish law is or may then be designated as an area within which Denmark may exercise sovereign rights with respect to the exploration and exploitation of natural resources on the seabed or its subsoil and the superjacent waters in and with respect to two other business operations for the exploration and economic exploitation of the area; the term does not include the Faroe Islands and Greenland; (d)) the term "person" includes an individual, a company and any other body of person; e) the term "national" means any individual poss essing the nationality of a Contracting State and any legal person, partnership or association deriving into force of the law in force in a Contracting State; f) the term "company" means any body corporate or any entity which for tax purposes is treated as a legal person; g the terms "enterprise) of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a person domiciled in a Contracting State and an enterprise carried on by a person who is resident of the other Contracting State; h) the term "international traffic" means any transport by ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; in) the term "tax" means, as the context, Kuwaiti tax or Danish tax; (j) the term "competent authority") means: (i) In Kuwait, the Minister of Finance or the Minister of Finance authorized representative; (ii) In Denmark, the Minister for Taxation or its authorized representative; k) the term "activity" includes the performance of professional and other activities of an independent character. 2. a Contracting State's application of the Agreement at any time, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has to that time in that Contracting State concerning the taxes two which the Convention applies, any meaning shall under the tax laws applicable in that Contracting State prevailing over a meaning to the term under other laws applicable in that State. Article 4 Resident 1. In this Convention, the term "a person who is a resident of a Contracting State" means: (a)) In Kuwait, a natural person who is domiciled in Kuwait and is a Kuwaiti national and a company which is incorporated in Kuwait. (b)) In Denmark, any person who, under the laws of Denmark is liable by reason of his two tax therein domicile, residence, place of management or any other criterion of a similar nature. This term does not include a person who is liable to two tax in Denmark only of income from sources in Denmark or property, located in Denmark. 2. For the purposes of paragraph 1, ' a person who is a resident of a Contracting State "include all of the following: (a)) that Contracting State Government and any of its political subdivisions or local agencies; (b)) any government institution established for in that Contracting State under public law such as company National Bank, fund, authority, foundation, agency, or other similar entity; c) any entity incorporated in that Contracting State if the entire capital of the device is obtained of that Contracting State or any of its political subdivisions or local authorities, or by any government institution, as defined in point (a)) or b) of this paragraph, together with other states. This Commission shall only apply to the portion of the unit corresponding to the stake in the unit, which is owned by a Contracting State or any of its political subdivisions or local authorities, or by any government institution, as defined in point (a)) or b) of this paragraph; (d)) in Denmark: A legal person established for in Denmark by the law of Denmark with the purpose of providing pension and other similar services two individuals and is generally exempt from tax in Denmark. 3. If a natural person under the provisions of paragraph 1 is a resident of both Contracting States, then his status shall be determined as follows: a he shall be deemed to be) a resident of the Contracting State in which he has a permanent home available two him. If he has a permanent home available in both Contracting States, two him he shall be deemed to be a resident of the Contracting State with which his personal and economic relations (center of vital interests); (b)) if it can not be determined "in the Contracting State he has his centre of vital interests, or if he has not a permanent home available two him in any of the Contracting States, he shall be deemed to be a resident of the Contracting State, where he has an habitual abode; c if he has an habitual abode) in both Contracting States or if he does not have such a stay in any of them, he shall be deemed to be a resident of the Contracting State of which he is a national; (d)) if his status can not be determined "in accordance with (a)) two c), the Contracting States competent authorities settle the question by mutual agreement. 4. If a non-natural person in accordance with paragraph 1 is a resident of both Contracting States shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. Article 5 Permanent establishment 1. In this Convention, the term "permanent establishment" means a fixed place of business through which an enterprise business activities wholly or partly carried on. 2. The term "permanent establishment" includes especially: (a)) a place from which a management; b) a branch; c) an office; d) a factory; e) a workshop; and f a mine, an oil or) gas well, a quarry or any other place of extraction of natural resources. 3. A building site or construction, assembly or installation project or supervisory activities construction in connection therewith, performed in a Contracting State constitutes a permanent establishment if such site, project or activities continue for a period of more than nine months. 4. services, including consultancy or management assistance, as an enterprise of a Contracting State through employees or other personnel engaged supplies by the enterprise for this purpose in the other Contracting State, constitutes a permanent establishment if the enterprise of this nature is maintained in one or more periods together, represent more than nine months within any 12-month period. 5. An installation or drilling rig or ship used for the exploration of natural resources, constitutes a permanent establishment only if it lasts or the activity continues for more than 12 months. Activity carried on by an enterprise associated with another enterprise shall be regarded as carried on by the enterprise with which it is associated, if the activity in question: a) is substantially the same as that exercised by the laughter enterprise and b) relate to the same project or the same operation, unless those activities are performed simultaneously. For the purposes of this paragraph, undertakings considered connected when the same person participate directly or indirectly in the management, control or capital of the enterprises. 6. Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall not be deemed two include: a) the use of facilities solely for the purpose of storage, display or delivery of goods belonging to the enterprise; (b)) the maintenance of a stock of goods belonging to the enterprise solely for the purpose of storage, display or delivery; (c)) the maintenance of a stock of goods 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 collecting information for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on any other activity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities specified in subparagraphs a) two e) activities, provided that the fixed place overall business resul ting from this combination is of a preparatory or auxiliary character. 7. If a person who is not an agent of an independent status two whom paragraph 8, the term "acting in a Contracting State on name of an enterprise of the other Contracting State, that enterprise shall, notwithstanding the provisions of paragraphs 1 and 2 shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise , if such person has, and habitually exercises in the first-mentioned State an authority two conclude contracts in the name, unless that person are limited for such activities, as mentioned in paragraph 6 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of this paragraph. 8. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it's on business in that other Contracting State through a broker, general commission agent or any other agent of independent status, provided that such person's are acting in the scope of their business. However, if such a representative company exercised wholly or almost wholly on name of that enterprise and other enterprises which are controlled by it or have a controlling share of it, he should not be regarded as an independent representative in this paragraph. 9. 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 Carrie's on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not of itself mean that either company a permanent 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 which is Contracting State may be taxed in that other Contracting State. 2. The term "immovable property" shall have the meaning which it has under the law of the Contracting State where the property is located. The term shall in any case include property accessory two immovable property, livestock and equipment used in agriculture and forestry, rights to two which the provisions of general law respecting landed property apply, usufruct of immovable property and rights two variable or fixed payments as consideration for the use of, or the right to work, mineral deposits, sources and other natural resources. Ships and aircraft shall not be regarded as immovable property. 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting or use in any other form of real estate. 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and two income from immovable property used for the performance of professional services. Article 7 Business Profits 1. Profits derived by an enterprise of a Contracting State shall be taxable only in that State unless the enterprise's on business in the other Contracting State through a permanent establishment, which is located in that other Contracting State. If the enterprise's or has carried business activities in this way, can make the profits taxed in the other Contracting State but only so much of them as is attributable to two that permanent establishment. 2. If an enterprise of a Contracting State on business in the other Contracting Carrie's State through a permanent establishment situated therein, shall, unless the provisions of paragraph 3 second, in each Contracting State two that permanent establishment attributed the profit that could be expected to achieve if it were a distinct and independent enterprise that was engaged in the same or similar activities under the same or similar conditions and who completely free conditions did business with the enterprise of which the permanent establishment it is. 3. On appointment of a permanent establishment profits shall be allowed as deductions those deductible expenses which are incurred for the permanent establishment, including general expenses incurred for management and administration, whether the costs incurred in the State in which the permanent establishment is situated, or elsewhere. 4. No profits shall be attributed to a permanent establishment, simply because that permanent establishment has procured goods for the enterprise. 5. If it has been customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an apportionment of the enterprise's total profits of its various parts, nothing in paragraph 2 shall prec lude that Contracting State from determining the profits to be taxed by such an apportionment. The method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles laid down in this article. 6. If the information is available to the competent authority of a Contracting State is inadequate to determine the profits to be attributed to a permanent establishment of a person, nothing in this Article shall affect the Contracting State competent authority use by law or regulation in that Contracting State relating to the determination of the tax liability of that permanent establishment is at the discretion of the competent authority in that State of the gains as taxable for the permanent establishment, provided that such legislation or rules shall be applied according to the information is available to the competent authority in accordance with the principles in this article. 7. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary. 8. Where profits include items of income or gains which are dealt with in other Articles of this Convention separat, the provisions of these Articles shall not be affected by the provisions of this article. Article 8 Shipping and Air transport 1. Profits derived by an enterprise of a Contracting State from the operation of ships or aircraft in international traffic shall be taxable only in that State. 2. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic include the following: a) profits from the rental of ships or aircraft unmanned (bareboat charter), b) profits from the use, maintenance or rental of containers (including trailers and related equipment for the transport of containers) used for the transport of goods or goods when such a purely such use, respectively, such maintenance or clean, closely linked with the operation of ships or aircraft in international traffic. 3. The provisions of paragraphs 1 and 2 shall also apply to profits from the participation in a pool, a joint business or an international operating agency. 4. In cases where enterprises from several countries have agreed two operate ships or aircraft in international traffic along in the form of a joint business, the provisions of this Article shall apply only two that part of the profits as corresponds to the participation in this business community, owned by an enterprise of a Contracting State. Article 9 ASSOCIATED ENTERPRISES 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 person 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 of these cases between the two enterprises are made or imposed conditions in their commercial or financial relations which differ from those, which would be made between independent enterprises, then any profits which, but for those conditions hatred not occured, would 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 therewith. 2. If a State Party to the profits of an enterprise of that Contracting State-and taxes accordingly-profits on which an enterprise of the other Contracting State has been charged tax in that other Contracting State two and the profits so included are profits which would have accrued to the enterprise of the first-mentioned Contracting State if the conditions agreed upon between the two enterprises hatred been those which would have been made between independent enterprises , then that other State shall make an appropriate adjustment Contracting to the amount of tax that is calculated on those profits. In determining such adjustment must take due account of the other provisions of this Agreement, and the Contracting States ' competent authorities shall consult with each other. Article 10 Dividends 1. Dividends paid by a company which is a resident of a Contracting State to a person who is a resident of the other Contracting State may be taxed in that other State. 2. Such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and by the law of that State, but if the internal owner of the dividends is a resident of the other Contracting State, not exceed: (a) tax charged sow) 0 per cent. of the gross amount of the dividends if the benificial owner is a company (other than a partnership) which holds directly to least 25 per cent. the capital of the company paying the dividends and has owned this part of the capital of an uninterrupted period of one year, and the dividend during this period; b) 0 per cent. of the gross amount of the dividends if the internal owner of the dividends is the other Contracting State or any government institution or any entity that is a resident of the other Contracting State in accordance with Article 4. 2 (a)) two (c)). c) 5 per cent. of the gross amount of the dividends if the owner is a pension fund court or other similar institution providing pension schemes in which individuals may participate to secure retirement benefits, where such pension fund or other similar institution is recognized for tax purposes, established for and controlled in accordance with the law of that other State; d) 15 percent. the gross amount of the dividends in all other cases. The Contracting States ' competent authorities shall by mutual agreement settle the mode of application of these limitations. This paragraph shall not affect the taxation of the company in respect of the profits out of which dividends are paid. 3. The term "dividends" as used in this Article means income from shares, "jouissance ' Shares or ' jouissance ' rights, mining shares, founders ' shares or other rights, not being debt entitling the holder to a share in profits, as well as income from other corporate rights which is subject to the same tax treatment as income from shares by the law of the State in which the company making the distribution is a resident. 4. The provisions of paragraphs 1 and 2 shall not apply if the owner is a resident Court of a Contracting State, Carrie's on business in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein, and the shareholding which is the basis for payment of the dividend is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, unless such dividends are paid to a person resident in that other State or insofar as the holding, which is the basis for payment of the dividend is effectively connected with a permanent establishment situated in that other State subject the company's undistributed profits, nor 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. 6. If a Contracting State has charged withholding tax at a higher rate than the tax allowable under the provisions of this Agreement, the application for a refund of the excess amount is late to the competent authority of that State within a period of three years after the end of the calendar year in which the tax is charged. Repayment must be made within a six-month period from the date the request was submitted to the competent authority. 6-month period may be extended if both Contracting States agree that the appropriate documentation is submitted to the competent authority of the forms Party. Article 11 Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State who is the owner of such interest shall be benificial taxable only in that other Contracting State. 2. 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 or not in the debtor's profits or not, and especially income from government securities and income from bonds or debentures, including premiums and prizes attaching two such securities, bonds or debentures , as well as income that is subject to the same taxation treatment as income from money lent by the tax law of the Contracting State in which the income originate. 3. The provisions of paragraph 1 shall not apply if the owner is a resident Court of a Contracting State, Carrie's on business in the other Contracting State in which the interest arises, through a permanent establishment situated in that other Contracting State and the debt which is the basis for the interest paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 4. Interest shall be deemed the two arise in a Contracting State when the payer is a person who is a resident of that State. If the person paying the interest, whether he is a resident of a Contracting State or not, has a permanent establishment in a Contracting State in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed the two arise in the Contracting State in which the permanent establishment is situated. 5. If a special relationship between the payer and the benificial owner or between both of them and some other person, the amount of the interest in relation to the debt claim for which they are paid, exceeds the amount which would be been agreed between the payer and the Court, if such a connection owner hatred not occurred, the provisions of this Article shall apply only to the amount of laughter. In that case, the excess amount is taxable according to the laws of each Contracting State, due regard to the other provisions of this Agreement. 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 Contracting State. 2. Such royalties may also be taxed in the Contracting State in which they arise, and by the law of that State, but if the internal owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent. the gross amount of the royalties. 3. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and works on film, tape or other means of reproduction for use in connection with television or radio broadcasting, any patent, trade mark , design or model, plan, secret formula or process, or for information (know-how) concerning industrial, commercial or scientific experience. 4. The provisions of paragraphs 1 and 2 shall not apply if the royalties benificial owner who is resident of a Contracting State, Carrie's on business in the other Contracting State in which the royalties arise, through a permanent establishment situated in that other Contracting State and the rights or property, as the basis for the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply. 5. Royalties shall be deemed two arise in a Contracting State when the payer is a person who is a resident of that State. If the person paying the royalties, whether he is a resident of a Contracting State or not, has a permanent establishment in a Contracting State in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed two arise in the Contracting State in which the permanent establishment is situated. 6. If a special relationship between the payer and the royalties benificial owner or between them and some other person, the amount that the royalties in relation to the use, right or information for which they are paid, exceeds the amount which would have been agreed between the payer and the Court, if such a connection owner hatred not occurred, the provisions of this Article shall apply only to the amount of laughter. In that case, the excess amount is taxable according to the laws of each Contracting State, due regard 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 to two in Article 6, which is situated in the other Contracting State may be taxed in that other Contracting State. 2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an Enterprise of a Contracting State has in the other Contracting State, including gains from the alienation of such a permanent establishment (alone or with the whole enterprise) may be taxed in that other Contracting State. 3. Profits of an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State. 4. Gains from the alienation of any property other than those referred in paragraphs 1, 2 and two 3 shall be taxable only in the Contracting State of which the alienator is a resident. 5. In cases where enterprises from several countries have agreed two operate ships or aircraft in international traffic along in the form of a joint business, the provisions of paragraph 3 shall only apply to the part of the profits as corresponds to the participation in this business community, owned by an enterprise of a Contracting State. Article 14 Dependent Personal employment 1. Subject to the provisions of Articles 15, 17, 18, 19 and 20 leads, sala ries, wages and other similar remuneration derived by a person domiciled in a Contracting State in respect of work 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 Contracting State. 2. Notwithstanding the provisions of paragraph 1, remuneration derived by an individual who is 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 Contracting State if: a the recipient is present) in the other Contracting State for a period or periods not exceeding 183 days in any 12 month period commencing in or ending in the fiscal year concerned , and b) the remuneration is paid by or for an employer is not a resident of the other Contracting State, and (c) the remuneration is not borne by) a permanent establishment or a fixed base which the employer has in the other Contracting State. 3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a Contracting State may be taxed in that State. Article 15 Directors ' fees Directors ' fees and other similar remuneration derived by a person who is a resident of a Contracting State in his capacity as a member of the board of directors or similar body of a company which is a resident of the other Contracting State shall be taxable only in the first-mentioned Contracting State. Article 16 Artists and Athletes 1. Notwithstanding the provisions of Article 15, income derived by a person who is a resident of a Contracting State as an entertainer, such as theatre, motion picture, radio or television artiste, or a musician, or as a sportsman from his personal activities as such exercised in the other Contracting State may be taxed in that other Contracting State. 2. Where income in respect of personal activities pursued as an entertainer or athlete accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the artist or athlete's activity is carried out. 3. The provisions of paragraphs 1 and 2 shall not apply to income, as entertainers or athletes who are residents of a Contracting State from his personal activities as such exercised in the other Contracting State if the visit two that other State in the substantially supported by public funds of the first-mentioned Contracting State, including funds from any of its political subdivisions or local authorities or authorized institution , or income derived by a non-profit making organization in respect of such activities, provided that no Part of its income is payable to or otherwise available for the personal benefit of its owners, founders or members. Article 17 Pensions, benefits and similar payments 1. Payments by a natural person who is a resident of a Contracting State, under the social security legislation of the other Contracting State or under any other scheme out of funds created by that other State or political subdivision or local authority may be taxed in that other State. 2. Subject to the provisions of this Article, paragraph 1 and Article 18, paragraph 2 leads to another, pensions and other similar remuneration arising in a Contracting State and paid to a resident of the other Contracting State, whether in consideration of past services or not be taxable only in the other Contracting State. Such pensions and other similar remuneration shall be taxed in the first-mentioned Contracting State if: a) contributions paid by the recipient to the pension scheme were deducted from the taxable income beneficiary's in the first-mentioned Contracting State under the law of that State; or b) contributions paid by an employer were not taxable income to the recipient of the first-mentioned Contracting State under the law of that State. 3. The pension shall be deemed two arise in a Contracting State if paid by a pension fund or other similar institution providing pension schemes which individuals may join in order to secure retirement benefits, where such pension fund or other similar institution, recognized for tax purposes established for and controlled in accordance with the law of that State. Article 18 Government Service 1. a) Sala ries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a political subdivision or local authority thereof to an individual in respect of services rendered two that Contracting State or subdivision or authority shall be taxable only in that State. b) such sala ries, wages and similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that Contracting State and the individual is a resident of that Contracting State who: (i) is a national of that Contracting State; or (ii) did not become a resident of that Contracting State solely for the purpose of rendering. 2. a Any pension paid by a Contracting) State or a political subdivision or local authority, or out of funds created by them, to an individual in respect of services rendered two that Contracting State or subdivision or authority shall be taxable only in that Contracting State. (b) such pension shall be taxable) only in the other Contracting State if the individual is a resident of and a national of that other Contracting State. 3. The provisions of Articles 14, 15 and 17 shall apply to sala ries, wages and other similar remuneration and pensions in respect of services rendered two in connection with a business carried on by a Contracting State or a political subdivision or local authority. Article 19 Teachers and researchers An individual who is, or was immediately before visiting a Contracting State a resident of the other Contracting State and who at the invitation of the first-mentioned Contracting State Government or from a university, college, school, museum or other cultural institution in that first-mentioned Contracting State or under an official program of cultural exchange staying in that Contracting State for a period not exceeding two consecutive years solely for the purpose of teaching , giving lessons or conduct research that such institution shall be exempt from tax in that Contracting State in his salary for this business, where income derived from sources outside that State. Article 20 Students 1. Payments which a student or apprentice who is, or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned Contracting State solely for the education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State. 2. For grants, scholarships and remuneration from employment not covered by stykke1, a student or apprentice as referred in paragraph 1 In addition, two during such studies or such training be entitled to the same exemptions, rebates granted or deductions for tax, granted two-person resident in the Contracting State of the business. Article 21 Other income 1. Items of income of a person who is a resident of a Contracting State and not dealt with in the foregoing Articles of this Convention shall be, irrespective of their origin, shall be taxable only in that State. 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in Article 6, paragraph 2, if in a Contracting State of the recipient of such income FAZ on business in the other Contracting State through a permanent establishment situated establishment and the right or property which underlie the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 shall apply. Article 22 Capital 1. Capital represented by immovable property referred two in Article 6, owned by a person who is a resident of a Contracting State and situated in the other Contracting State may be taxed in that other Contracting State. 2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State may be taxed in that other Contracting State. 3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a Contracting State and movable property pertaining to the operation of such ships and aircraft, shall be taxable only in that State. 4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State. 5. In cases where enterprises from several countries have agreed to operate two ships or aircraft in international traffic along in the form of a joint business, the provisions of this Article shall apply only to the portion of the assets corresponding to the proportion of the business community, owned by an enterprise of a Contracting State. Article 23 Elimination of Double Taxation 1. The laws in force in the Contracting States shall continue to govern the taxation in the respective Contracting States except in this Agreement agreed rules which would have otherwise. 2. It is agreed that double taxation shall be avoided in accordance with the following paragraphs of this article: 1) a) In Kuwait: Where a person who is a resident of Kuwait derives income or capital which, in accordance with the Owens this Agreement may be taxed in both Kuwait and Denmark, the Kuwait deduction from the tax on the income in an amount equal to the income tax paid in Denmark , and a deduction from the tax on the capital by an amount equal to the wealth tax paid in Denmark. Such deduction shall not, however, exceed that part of the income tax or capital tax as computed before the deduction is given, which is attributable to the income or the capital which may be taxed in Denmark. (b)) In Denmark: a. In cases where a person who is a resident of Denmark derives income or capital which, in accordance with the Owens this Agreement may be taxed in Kuwait, Denmark shall-unless the provisions of section (c) leads to another-deduction in the tax on income or capital in an amount equal to the income tax or capital tax paid in Kuwait. b. The credit shall not in any case exceed that part of the income tax or capital tax as computed before the deduction is given, which is attributable to the income or the capital which may be taxed in Kuwait. c. If a person who is a resident of Denmark derives income or capital which, in accordance with the Owens this Agreement shall be taxable only in Kuwait, Denmark may include this income or capital in the tax base, the but shall in the income tax or capital tax be deductible the portion of the income tax or capital tax, which is attributable to the income derived from Kuwait , or the capital owned in Kuwait. 2) For the purposes of this Article, the Zakat, as mentioned in Article 2, paragraph 3, points (a), point (iii), regarded as an income tax. Article 24 Non-discrimination 1. Nationals of a Contracting State may not be in the other Contracting State any taxation or any requirement connected two therewith which is other or more burdensome than the taxation and connected requirements two which nationals of that other State in the same circumstances are or may be subjected. 2. The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. This commissions shall not be as obliging a Contracting State trued cons two grant two individuals who are resident of the other Contracting State any personal allowances, reliefs and reductions on account of civil status or family dependents which it grants resident within its own territory. 3. Enterprises of a Contracting State whose capital is wholly or partly owned or controlled, directly or indirectly, by one or more person's who are residents of the other Contracting State may not be in the first-mentioned State any taxation or any requirement connected two therewith, which is other or more burdensome than the taxation and connected requirements two which other similar enterprises of the first-mentioned State are or may be subjected. 4. Notwithstanding paragraphs 1, the provi clips in 2 and 3, nothing in this Article shall affect the right of each Contracting State two grant exemption from or reduction of taxation under its domestic laws, regulations or administrative practices two its own nationals resident in that Contracting State. How exemption or reduction does not apply in respect of that part of the capital of companies that are owned by the person who are nationals of the other Contracting State. 5. Nothing in this Article shall be interpreted as imposing a legal obligation on a Contracting State two extend two-person resident in the other Contracting State, the benefit of any treatment, favor or privilege that can be granted any other State or two person resident in that State by virtue of the formation of a customs union, economic union, special agreements or free trade area or by virtue of any regional or sub-regional event wholly or mainly two movement of capital and/or taxes which the first-mentioned Contracting State subject. 6. Notwithstanding the provisions of Article 2, the provisions of this Article shall apply to taxes of every kind and description. Article 25 The procedure of Mutual Agreement 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 the remedies may be prescribed in these Contracting States domestic law, present his case to the competent authority of the Contracting State of which he is a resident or , if his case is covered by Article 24, paragraph 1, of the competent authority of the Contracting State of which he is a national. The case must be presented within three years from the date on which granted him the first notification of the action resul ting in taxation not in accordance with the provisions of the Agreement. 2. The competent authority shall, if the objection appears to it to be justified and if it can not reach a fair solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State in order to avoid taxation which is not in accordance with the agreement. Any agreement reached shall be implemented notwithstanding any time limits laid down in the Contracting States ' own laws. 3. The Contracting States ' competent authorities shall endeavor by mutual agreement to resolve difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not covered by the Agreement. 4. The Contracting States ' competent authorities may communicate directly with each other, including through a joint commission consisting of thems elves or their representatives, with a view two concluding observations in an agreement in accordance with the preceding paragraphs. Article 26 Exchange of information 1. The Contracting States ' competent authorities shall exchange such information as is foreseeably relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on name of the Contracting States, their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained by its internal law, and shall be disclosed only two person 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 paragraph 1, or the oversight of the above. Such person's or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 3. The provisions of paragraphs 1 and 2 shall in no case be cons trued so as two impose on a Contracting State the obligation: a to carry out administrative measures) two variance with that or the other Contracting State laws and administrative practice; (b)) two supply information which is not obtainable by this or the other Contracting State or normal management practices; (c) supply information which would disclose) to any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 4. If a Party requests information pursuant to this Article, the other Contracting State shall use the measures available to obtain the requested information, whether the other State may not need such information for its own tax purposes. The bond in the preceding sentence shall apply subject to the limitations of paragraph 3 but in no case shall such limitations be cons trued so as to enable a Contracting State two decline two supply information solely because it does not have any tax interest in such information. 5. In no case shall the provisions of paragraph 3 be cons trued so as to enable a Contracting State two decline two supply information solely because the information is successfully by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it that co-relates two ownership interests in a person. Article 27 Miscellaneous Rules 1. The provisions of this Agreement shall not be cons trued so as two limit in any way any exception, exemption, deduction, allowance or other discounts, as now or then accorded either (a)) by a Contracting State relating to the determination of the tax imposed by that Contracting State; or (b) any other special event) city on taxation in connection with the economic or technical cooperation between the Contracting States. 2. The competent authorities of each Contracting State may lay down rules in order to implement the provisions of this Agreement. Article 28 Members of diplomatic missions and consular posts Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions, consular office or international organization enjoyed by international law, common law or the specific agreements. Article 29 Entry into force Each of the Contracting States shall notify the other of the implementation of the constitutional requirements for the entry into force of this Agreement. The Agreement shall enter into force on the date of the later of these notifications and its provisions shall thereupon have effect in both Contracting States: a in respect of withholding taxes), on amounts paid or credited on or after 1 January of the year in which the agreement is signed; (b)) in respect of other taxes, for taxable periods beginning on or after January 1 of the year following the year in which the agreement is signed. Article 30 Termination This Agreement shall remain and Duration in force until terminated by a Contracting State. Each Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination of the Agreement to least six months before the end of any calendar year following the expiration of a period of five years from the year in which the Convention enters into force. In that case, the Convention shall cease to have effect in both Contracting States (a) in respect of withholding taxes), on amounts paid or credited on or after 1 January in the year in which the notification of termination; (b)) in respect of other taxes, for taxable periods beginning on or after January 1 of the year following the year in which the notification of termination. In WITNESS WHEREOF the duly authorized under signed, being by their respective governments, have signed this Agreement. Done in Kuwait, 10 Rajab 1431 H corresponding two 22 June 2010, in duplicate in Danish, Arabic and English languages, all texts being equally authentic. In case of divergence, the English text shall prevail. For the Government of the Kingdom of Denmark, on behalf of the Government of the State of Kuwait Christian König Feldt Khalifa m. Hamada Danish Ambassador Permanent Secretary, Ministry of Finance Protocol On signing the Agreement for the avoidance of double taxation and prevention of fiscal evasion with respect to two taxes on income and on capital between the Government of the State of Kuwait and the Government of the Kingdom Denmark has signed "agreed that the following provisions shall form an integral part of the Agreement: 1. In Articles 5 and 7 It is agreed that when an enterprise of a Contracting State sells goods or Carrie's on business in the other Contracting State through a permanent establishment situated therein, that the permanent establishment's profits shall only be based on the remuneration attributable to the actual activity of the permanent establishment for such sales or such person. In particular as regards contracts for inspection, supply, installation or construction of industrial, commercial or scientific equipment or property or public works, where an enterprise has a permanent establishment, then such permanent establishment profits shall only be based on the proportion of the contract which effectively done by the permanent establishment in the State in which the permanent establishment is situated. Gains related to the proportion of the contract which is carried out by an enterprise's head office shall be taxable only in the State where the undertaking is situated. 2. In Article 10, paragraph 2, point (a) It is understood that when dividends are paid by a company which is a resident of Denmark to a company which is resident in Kuwait, and such dividends by the current legislation in Kuwait taxed at a rate that is lower than 15 per cent, then Denmark levy a tax not exceeding 15 per cent. of the gross dividend amount. 3. Articles 11 and 12 A Contracting State may, in accordance with the tax laws of that State taxing interest and royalties paid by a company which is a resident of that Contracting State to a company, a trust, a partnership or any other legal person who is a resident of the other Contracting State where: (a) more than 50 per cent). of the capital or of the voting rights in the company, the trust, the partnership or the other legal person receiving the interest or royalties, owned or controlled directly or indirectly by a person or of related companies, trusts, partnerships or other legal entities, which is not a resident of a Contracting State or the European Union or the European Economic Area , and (b)) the interest or royalties would not be subject to a reduced tax rate or exemption in the Contracting State in which they arise in accordance with any tax treaty or other agreement between this state and other states or jurisdictions, if they were paid directly from the company in the first-mentioned State any person or two related companies, trusts or partnerships or other legal entities that directly or indirectly participate in the ownership or control of the company two which the interest or royalties are paid. For the purposes of these provisions, the term "related companies, trusts or partnerships or other legal entities" means companies, trusts or partnerships or other legal entities in which the same person participate directly or indirectly in the management, control or capital. In WITNESS WHEREOF the duly authorized under signed, being by their respective governments, have signed this Agreement. Done in Kuwait, 10 Rajab 1431 H corresponding two 22 June 2010, in duplicate in Danish, Arabic and English languages, all texts being equally authentic. In case of divergence, the English text shall prevail. For the Government of the Kingdom of Denmark, on behalf of the Government of the State of Kuwait Christian König Feldt Khalifa m. Hamada Danish Ambassador Permanent Secretary, Ministry of Finance

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