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Law No. 9 Of 5 February 1992 On Ratification Of The Agreement Between The Government Of Romania And The Government Of The Republic Of Costa Rica Concerning The Avoidance Of Double Taxation In Respect Of Income Tax And Capital Tax

Original Language Title:  LEGE nr. 9 din 5 februarie 1992 pentru ratificarea Acordului dintre Guvernul României şi Guvernul Republicii Costa Rica privind evitarea dublei impuneri în materie de impozit pe venit şi pe capital

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LEGE No. 9 of February 5, 1992 for the ratification of the Agreement between the Government of Romania and the Government of the Republic of Costa Rica on the avoidance of double taxation on income and capital
ISSUER PARLIAMENT
Published in OFFICIAL MONITOR NO. 19 of 12 February 1992



The Agreement between the Government of Romania and the Government of the Republic of Costa Rica on the avoidance of double taxation on income and capital tax, signed in San José on 12 July 1991, is ratified. + Annex 1 AGREEMENT between the Government of Romania and the Government of the Republic of Costa Rica on the avoidance of double taxation on income and capital In the desire to promote and strengthen relations between both countries, in internal affairs, the Government of Romania and the Government of the Republic of Costa Rica have agreed the following + Chapter 1 + Article 1 Data subjects This Agreement shall apply to persons who are resident of one or both Contracting States. + Article 2 Targeted taxes 1. This Agreement shall apply to income and capital taxes, levied by each Contracting State, or to their administrative-territorial units, without taking into account the system of perception. 2. They are considered income and capital tax all taxes on total income, on total capital, or on income or capital items, including taxes on gains from the alienation of goods or buildings, as well as taxes on capital revaluation. 3. The following existing taxes shall apply: a) As regards Romania: -the tax on incomes made by individuals; -the tax on profits made by legal entities; -the tax on salaries and other similar remuneration; -the tax on incomes made from agricultural activities; -the tax on the profit of foreign representations and companies with foreign capital participation, constituted according to the Romanian legislation; ((hereinafter referred to as Romanian tax) b) As regards Costa Rica: -the tax on the benefits of businesses and individuals performing gainful activities; the income tax on natural persons who carry out dependent activities; -tax on remittances on the outside ((hereinafter referred to as costarican tax) This agreement also applies to any taxes of an identical or analogous nature that would be imposed in addition or instead of existing taxes. The component authorities of the Contracting States shall notify each other of any significant changes that will occur in those tax laws by the end of each calendar year. + Chapter 2 + Article 3 General definitions 1. For the purposes of this Agreement, in so far as the context does not establish a different interpretation a) the terms of a contracting state and another contracting state designate in this context Romania and Costa Rica; b) the term Romania means Romania and, used in a geographical sense, indicates the territory of Romania, including its territorial sea, as well as its exclusive economic zone and the continental shelf to which Romania exercises its sovereign rights in accordance with domestic and international law on the exploration and exploitation of existing natural, biological and mineral resources in maritime waters, on the bottom and in their basement; c) the term Costa Rica means Costa Rica and, used geographically, indicates the territory of Costa Rica, including the airspace of its territory, its territorial waters, the continental shelf, as well as the economic zone over which Costa Rica exercise exclusive rights in accordance with its domestic law and international law on the protection, preservation and exploitation of all natural resources and riches in maritime waters, on the bottom and in their basement; d) the term person includes a natural person, a company and any other group of persons legally constituted in one of the states; e) the term of the company indicates any legal persons, including the representations and companies constituted on the basis of the Romanian laws or the costarican laws, or any entity that is considered as a legal person for the purpose of taxation in compliance with the tax laws of each Contracting State; f) the terms of the undertaking of a contracting State undertaking of the other Contracting State signify, respectively, an undertaking run by a resident of a Contracting State and an undertaking run by a resident of the other Contracting State; g) the national term means all natural persons who have the citizenship of a contracting state and all legal entities or other entities established on the basis of the laws in force in a contracting state; h) the term international traffic means any transport carried out by an aircraft or motor vehicle operated by an undertaking of a Contracting State, unless such transport is carried out only between places situated in the other Contracting State; i) the term competent authority means: 1. in Romania, the Minister of Economy and Finance or his authorized representative; 2. in Costa Rica, Minister of Finance or his authorized representative. 2. As regards the application of the Agreement by each Contracting State, any term not defined in the Agreement shall have the meaning assigned to it by the tax legislation of that Contracting State relating to the taxes covered by the Agreement, if the context does not require a different interpretation + Article 4 1. For the purposes of this Agreement, the term resident of a Contracting State shall designate any person who, according to the legislation of this State, is subject to taxation in that State due to his domicile, residence, place of administration or any criterion of a similar nature. 2. When, according to the provisions of paragraph 1 of this Article, a natural person is resident of both Contracting States, its legal status shall be determined in accordance with the following rules: a) is considered a resident of the contracting state where he owns a permanent residence. If he has a permanent residence in both contracting states, he is considered a resident of the contracting state with which personal and economic activities are more important; b) if the contracting state in which this person holds the main activities cannot be determined or if the person does not have a permanent residence in any of the contracting states, is considered a resident of the contracting state where he is normally domiciled; c) if such person has an habitual residence in both Contracting States or in any of them, he shall be regarded as a resident of the Contracting State of which he is a national; d) if the person is a national of both Contracting States or any of them, the competent authorities of the Contracting States shall resolve the matter in agreement. 3. When according to the provisions of paragraph 1 of this article, a person, other than a natural person, is a resident of both contracting states, in this case he will be considered a resident of the contracting state in which the seat of his management is located flocks. + Article 5 1. For the purposes of this Agreement, the term permanent establishment means a fixed place whereby the undertaking carries out, in whole or in part, its activity. 2. The term permanent establishment shall include, in particular: a) a driving seat; b) a branch; c) an office; d) a plant; e) a workshop; f) a mine, a career or any other place of extraction of natural resources; g) a construction or assembly site, in so far as the period exceeds 12 months. 3. The permanent establishment shall not include: a) the use of an installation exclusively for the purpose of storage, exposure or delivery of goods or goods on the basis of a contract of sale of goods or goods belonging to the undertaking; b) maintaining a stock of products or goods belonging to the enterprise exclusively for the purpose of storage, exposure or delivery; c) maintaining a stock of goods or goods belonging to the undertaking solely for the purpose of taking over by another undertaking; d) the sale of products or goods belonging to the company, exhibited within a tirade or temporary exhibitions after the closure of the mentioned circulation or exhibition; e) the maintenance of a fixed place exclusively for the purpose of buying goods and products or for the collection of information for the enterprise; f) maintaining a fixed place, used exclusively for the enterprise in order to advertise, to provide information, for scientific research or for similar activities that have a preparer or auxiliary character for the enterprise. 4. A person operating in a contracting state on behalf of an enterprise from the other contracting state, other than an agent with an independent status within the meaning of paragraph 5, shall be considered permanent establishment in the first contracting state if it has this State of powers which it habitually exercises, allowing it to enter into contracts on behalf of the undertaking, provided that the activity of that person is not limited to the purchase of goods or goods for the undertaking. 5. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State solely due to the fact that it exercises its activity in that other State through a broker, a general commission agent or of any other independent agent, provided that such persons act within their normal business. 6. The fact that a company that is resident of a contracting state controls or is controlled by a company that is resident of the other state (either through a permanent establishment or otherwise) is not by itself sufficient to make one of these companies a permanent establishment of the other. + Chapter 3 + Article 6 Income from real estate 1. The income from immovable property, including income from agriculture and forestry, may be imposed in the contracting state in which these goods are located. 2. The term real estate has the meaning that is attributed by the legislation of the contracting state in which the goods in question are located. The term will include in any case, all the accessories of the real estate, the living inventory and the equipment used in agricultural and forestry operations, the rights to which the provisions of the common law on land ownership apply, the use of immovable property and the right to variable or fixed amounts for the exploitation of mineral deposits and other natural resources or as the price of their right of exploitation; ships and aircraft are not considered immovable property. 3. The provisions of paragraph 1 of this Article shall apply to income obtained from direct exploitation, rental or lease, as well as any form of exploitation of immovable property. 4. The provisions of paragraphs 1 and 3 of this Article shall also apply to income arising from immovable property of an enterprise and income from immovable property used in the exercise of an independent profession. + Article 7 Company benefits 1. The benefits of an undertaking of a Contracting State may be subject to taxation in this Contracting State, unless the undertaking exercises activity in the other Contracting State through a permanent establishment located there. If the company exercises its activity in this way, the benefits of the enterprise may be imposed in the other contracting state, but only to the extent that they are attributable to that permanent establishment. 2. By way of derogation from the provisions of paragraph 3 of this article, when an undertaking of a Contracting State exercises its activity in the other Contracting State through a permanent establishment located in that Contracting State, shall be awarded in each State, that permanent establishment, the benefits it could achieve if it constituted a separate and separate undertaking, exercising identical or similar activities, under identical or similar conditions, and dealing with all independence with the undertaking whose permanent establishment is. If the company exercises its activity in this way, the benefits of the enterprise may be imposed in the other contracting state, but only to the extent that they are assigned to that permanent establishment. 3. In determining the benefits of a permanent establishment are admitted to decrease the expenses incurred for the purposes pursued by this permanent establishment, including the management expenses and general administration expenses, regardless of the fact that have been carried out in the State where the permanent establishment is located or elsewhere. 4. To the extent that in a Contracting State it is customary that the benefits attributable to a permanent establishment be determined on the basis of a distribution of the total benefits of the undertaking between its various component parts no provision of paragraph 2 of this Article does not prevent this Contracting State from determining the taxable benefits according to the usual distribution; however, the method of distribution adopted must be such that the result obtained is in conformity with the the principles contained in this Article. 5. No benefit will be assigned to a permanent establishment for the simple fact that it buys goods or goods for the enterprise; however if this permanent establishment sells these goods and goods, the benefit will be assigned to it. 6. In order to apply the provisions of the preceding paragraphs, the benefits attributed to a permanent establishment shall end each year, by the same method, unless there are valid and sufficient reasons to do otherwise. 7. When the benefits include income treated separately in other articles of this Agreement, the provisions of those articles shall not be affected by the provisions of this Article. + Article 8 Transport undertakings 1. The benefits from operations of exploitation of ships, aircraft and vehicles in international traffic will be imposed only in the state where the effective management of the enterprise is located. 2. If the place of the actual management of a shipping undertaking is on board a ship, this place shall be deemed situated in the Contracting State in which the port of the ship is situated or, if there is no such port, in the State where the one exploiting the ship is a resident 3. The provisions of paragraph 1 of this article shall also apply to benefits derived from participation in a pool, joint exploitation or an international exploitation body. 4. With all provisions of the provisions of paragraph 1 of this article and of art. 7, the benefits derived from the naval, aircraft and road operations by an undertaking in a contracting State, mainly used, for the exclusive transport between two points located in a Contracting State, are taxable in this stat. + Article 9 Associated enterprises When: a) an undertaking in a Contracting State shall participate directly or indirectly in the management, control or capital of an undertaking of the other Contracting State, or b) the same persons participate, directly or indirectly, in the management, control or capital of an enterprise in a contracting state and an enterprise in the other contracting state and, either in one case or in the other, the two undertakings are linked in their commercial or financial relations by accepted or imposed conditions, which differ from those which would have been established between independent undertakings, the benefits which, without these conditions, would have been obtained by one of the enterprises, but could not be obtained due to these conditions, can be included in the benefits of this undertaking and imposed accordingly. + Article 10 Dividends 1. The dividends paid by a company that is resident of a contracting state, to a resident of the other contracting state, may be imposed in the other state. 2. However, these dividends may be imposed in the contracting state in which the dividend paying company is resident, according to the legislation of this contracting state; when the recipient of dividends is their beneficiary and subject of taxation in the other state contractor the tax so established will not be able to exceed: a) 5% of the gross total of dividends, if the beneficiary is a company, other than the persons companies, who would use directly at least 25% of the capital of the company to which they subscribe; b) 15% of the gross total of dividends in all other cases. The competent authorities of the Contracting States shall, in agreement, establish the form of application of those limits. The provisions of this paragraph do not affect the taxation of the company for the benefits from which the dividends 3. The term dividends, used in this article means income derived from shares, from rights of use, from mining parties, from parts of founder, or other rights, except receivables, as income from other assimilated social parts income from shares in accordance with the tax law of the contracting state in which the dividend distribution company is resident. 4. The provisions of paragraphs 1 and 2 of this Article shall not apply when the beneficial owner of the dividends, being a resident of one of the Contracting States, has in the other Contracting State a permanent establishment or a fixed base located there, and the holding of the stake by virtue of which the dividends are paid is actually related to the activities carried out through such permanent establishment or fixed base. In this situation the provisions of art. 7 7 or 15, as appropriate. 5. When a resident company of a contracting state carries out benefits or income from the other contracting state, this other state may not charge any tax on dividends paid by the company, except to the extent that participation dividend generators are effectively linked to a permanent establishment or a fixed base located in this other state, nor to prevail any tax, with the title of taxation of undistributed benefits, on the undistributed benefits of the company, even if the dividends paid or the undistributed benefits consist, in whole or in part, from benefits or income from this other State. + Article 11 Dobinzi 1. The Dobindays coming from a Contracting State and paid to a resident of the other Contracting State may be imposed in that other State. 2. However, such interest may also be imposed in the contracting state from which they come, in accordance with the legislation of this State; if the beneficial owner of the interests is subject of taxation in the other state, the tax thus charged will not could exceed 10% of the gross total of interest. The provisions of paragraph 2 of this Article shall not apply to interest paid by virtue of a credit granted and guaranteed, directly or indirectly, by a contracting State, an administrative-territorial unit or a public body (comprising institutions financial or state banks). 3. The terms of interest, as used in this Article, shall indicate the income from claims of any kind, whether or not accompanied by mortgage guarantees and a right to participate in the benefits, and, in particular, the proceeds from public effects, from securities or obligations, including prizes and premiums related to such effects, securities or obligations. Penalties for late payment shall not be considered as interest for the purposes of this Article. 4. The provisions of paragraphs 1 and 2 of this article do not apply if the beneficial owner of the interests, being resident of a contracting state, has in the other state, where the interest-paying company is resident, a permanent establishment or provide independent personal services at a fixed base located there, and the claim by virtue of which the interest is paid is actually related to the activities carried out through such a permanent establishment or fixed base. In this situation the provisions of art. 7 7 or 15, as appropriate. 5. The interests shall be deemed to come from a contracting state when the debtor is the state itself, a territorial-administrative unit or a resident of that state. However, when the person who pays the interest, whether he is a resident of a contracting state or not, has in a contracting state a permanent establishment or a fixed base in relation to which the claim on which the interest is paid and these interest shall be borne by that permanent establishment or fixed base, such interest shall be deemed to originate from the contracting State in which the permanent establishment or the fixed base is situated. 6. When, due to the special relations existing between the debtor and the creditor or between both and another person, the amount of the interest exceeds the amount that would have been agreed in the absence of such relations, the provisions of this Article shall apply only to this last mentioned amount. In this case, the excess part of the taxable payments according to the legislation of each Contracting State, taking into account the other provisions of this Agreement. + Article 12 Commissions 1. Commissions coming from a Contracting State and payments of a resident of the other Contracting State may be taxable in this other State. 2. However, such commissions may be imposed in the contracting state from which they come and in accordance with the legislation of that State, only if the person receiving the commission is the beneficial owner, the tax thus established not exceeding 5% of the amount The commission's gross. 3. The term commissions shall indicate the amounts paid to any person for services rendered as intermediary, commission or any other person assimilated to an intermediary or to a commission by the tax legislation of the contracting state of that come from such amounts. 4. The provisions of paragraph 1 and 2 of this article shall not apply if the beneficial owner of the commission, being a resident of a contracting state, has in the other contracting state from which the commission comes a permanent establishment, and obtaining the commission is directly linked to such a permanent establishment. In such case, the provisions of art. 7. 5. The commission will be considered as coming from a contracting state when the payer is that state itself, an administrative-territorial unit or a resident of that state. However, when the paying person of the commission, whether or not he is a resident of a contracting state, has in a contracting state the obligation to pay the commission and such a commission is borne by the permanent establishment respectively, then the commission shall be deemed to originate from the Contracting State in which the permanent establishment is situated. 6. When due to the special relations existing between the debtor and the creditor or between both and another person the amount of commissions exceeds, regardless of the case, the amount that would have been agreed in the absence of such relations, the provisions of this Article shall be only apply to that last amount. In this case, the excess part of the payments remains taxable, according to the legislation of each contracting state, taking into account the other provisions of this Agreement. + Article 13 Royalty 1. Redevents obtained in a Contracting State and paid to a resident of the other Contracting State may be imposed in that other State. 2. However, such royalties may also be imposed in the contracting state from which they come in accordance with the legislation of that State, but if the beneficial owner of the royalties is subject to tax in the other state, the tax thus established will not be able to exceed 10% of the gross royalty amount 3. The term royalty, as used in this article, indicates the amounts of any nature received for the use or concession of the right of use, of a copyright on a literary, artistic or scientific work, including on cinematographic films, films and magnetic tapes intended for the radio and television, of an invention patent, of a factory or trade mark, drawing, model, plan, secret formulae or procedures, as well as for the use and concession of the right to use industrial, commercial or scientific equipment, or for information relating to experience in the industrial, commercial or scientific field. 4. The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the royalties is resident of a Contracting State and has in the other Contracting State where the royalty-paying company is resident a seat permanent or a fixed base located there, and the right or property for which the royalties are paid are actually related to the activities carried out through such permanent establishment or fixed base. In such a situation, the provisions of art. 7 7 or 15, as appropriate. 5 5. Redevents are considered as coming from a contracting state when the payer is that state itself, an administrative-territorial unit or a resident of that state. However, when the paying person of the royalties, whether or not the resident of a contracting state is a permanent establishment or a fixed base, such royalties are regarded as coming from the contracting state in which the permanent establishment or the base is situated fixed. 6. When due to the special relations between the payer and the beneficiary or between both and another person, the amount of the royalties, considering the use, the right or the information for which they are paid, exceeds the amount that would have been agreed between the payer and beneficiary, in the absence of such relations, the provisions of this Article shall apply only to that last amount. In this case, the excess part of the payments remains taxable, according to the legislation of each contracting state, taking into account the other provisions of this Agreement. + Article 14 Capital gains 1. Cistigures coming from the alienation of immovable property, as defined in paragraph 2 of art. 6, are taxable in the contracting state in which they are located. 2. Cistigs coming from the alienation of movable property being part of the asset of a permanent establishment that an enterprise of a contracting state in which in the other contracting state or from movable property belonging to a fixed base available to it a resident of a Contracting State in the other Contracting State for the exercise of independent personal professions, including the gains from the disposal of this permanent establishment (alone or with the whole enterprise), or this basis Fixed, are taxable in this other state. 3 3. The cysts from the alienation of ships, aircraft and vehicles and road vehicles operated in international traffic, as well as movable property related to this exploitation are not taxable than in the contracting state where, in compliance with the provisions of art. 8, the gains from such activities are taxable. 4 4. Cistigures derived from the alienation of other properties, than those mentioned in paragraphs 1, 2 and 3 of this article, are taxable only in the contracting state whose resident is the transferor + Article 15 Independent professions 1. The incomes made by a resident of a Contracting State from the exercise of a free profession or other self-employed activities of a similar nature shall be taxable only in that State, unless this resident has a fixed base at his provision in the other Contracting State for the purpose of exercising his/her business If it has such a fixed base, income can be imposed in the other contracting state. 2. The term independent professions includes in particular the independent scientific, literary, artistic, educational or pedagogical activities, as well as the independent exercise of the profession of doctor, lawyer, architect engineer, dentist and accountant. + Article 16 Dependent professions 1. Subject to provisions of art. 17, 19, 20, 21, and 22 salaries, scales and other similar remuneration that a resident of a contracting state receives for the employed activity are taxable only in that state, provided that the activity is not exercised in the other Contracting State. If the activity is exercised in the other contracting state, the remuneration received from this activity is taxable in that other state. 2. By way of derogation from the provisions of paragraph 1 of this article, the remuneration that a resident of a contracting state receives for his salary activity, exercised in the other mentioned contracting state, if: a) the beneficiary remains in the other contracting state for a period or periods not exceeding 183 days in total during the fiscal year, and b) the remuneration is paid by a person or on behalf of a person who commits and who is not resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base that the employee has in the other state. 3 3. By way of derogation from the previous provisions of this Article, the remuneration for the pursuit of an employed activity on board a ship, aircraft and road vehicle operated in international traffic shall be taxable in the contracting State in which the place of effective management of the undertaking is located + Article 17 Remuneration of members of the Management Board The tantiems, the present tokens and other remuneration received by a resident of a Contracting State, in its capacity as a member of the board of directors or supervision of a company resident in the other Contracting State, shall be imposed in that other state. + Article 18 Artists and athletes 1. By derogation from the provisions of art. 15 and 16, the incomes made by the residents of a contracting state, as performance professionals, such as theatre, cinema, radio or television artists and musical performers, as well as athletes, from their professional activity carried out in this capacity in the other contracting state, can be imposed in that other state 2. When the income in connection with the personal activities of such a professional of performances or sports does not return to him but to another person, by way of derogation from the provisions of art. 7, 15 and 16, that income can be imposed in the contracting state in which the activities of the professional of performances or the athlete are exercised. 3. The income carried out from such activities carried out in the framework of a special programme for cultural exchanges, concluded between the Contracting States, shall be mutually exempt from taxation. + Article 19 Pensions Subject to the provisions of Article 20, pensions and other similar remuneration paid to a resident by a contracting state for an earlier activity shall be taxable only in this state, if the national law stipulates it. + Article 20 Public functions 1. a) Remuneration, other than pensions, paid by a contracting state or by an administrative-territorial unit to a natural person in connection with services rendered to the government of that state or to an administrative-territorial unit, shall be imposed only in that state. b) However, these remuneration are taxable in this contracting state, only if the services are provided in this state and if the beneficiary of the remuneration is resident of this state which: ((i) possess the nationality of that State, or ((ii) did not become a resident of that State solely for the purpose of providing services. 2. Provisions of art. 16 16, 17 and 19 will apply to remuneration paid by virtue of services provided in the framework of an activity exercised for a contracting state or an administrative-territorial unit of it. + Article 21 Teachers The salaries of teachers and other members of the teaching staff, residents of a contracting state, who teach or carry out scientific research in a university or other educational institution, officially recognized by the other state contractor, are not taxable than in the first state. + Article 22 Students and trainees Amounts that a student or trainee, who is or who was prior resident of a Contracting State and who lives in the other Contracting State solely for the purpose of continuing their studies, receives them to cover their expenses. maintenance, studies or training, are not taxable in this other state provided that they come from sources outside this other state. + Chapter 4 Capital tax + Article 23 Capital taxes 1. Capital constituted of real estate, as those defined in paragraph 2 of art. 6, shall be taxed in the contracting state in which these goods are located. 2. Capital constituted of movable property being part of the asset of a permanent establishment of a company or movable property belonging to a fixed base used for the exercise of a free profession is taxable in the contracting state where it is located permanent establishment or fixed base. 3. Ships, aircraft and road vehicles operated in international traffic, as well as movable property belonging to these holdings, shall be imposed only in the contracting state in which the effective management of the undertaking is situated. 4. All other capital items of a resident of a Contracting State shall be taxable only in this State. + Article 24 Other income The income elements of a resident of a Contracting State, regardless of their origin, which are not treated in the preceding articles of this Agreement, shall be taxed in this State. + Chapter 5 + Article 25 Methods of avoiding double taxation 1. Double taxation will be avoided in the following manner: As regards Romania, the tax paid by a resident of Romania on income and capital obtained in Costa Rica, in accordance with the provisions of this agreement, will be deducted from the total Romanian tax payable, according to the Romanian tax legislation. This deduction may not exceed the tax fraction calculated before the deduction, corresponding to its income items received in this other State. 2. As far as Costa Rica is concerned, the proceeds obtained in the other contracting state will be fully exonerated. + Chapter 6 General provisions + Article 26 Nondiscrimination 1. The nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation related to it, different or more burdensome than the imposition and obligations to which they are or may be subject to the nationality of this the other state in the same situation. By derogation from the provisions of art. 1, this provision also applies to the nationals of a contracting state that are not residents of any of the contracting states. 2. A Contracting State will not increase the taxation of a resident of the other Contracting State, including the income elements that have already been imposed in the other Contracting State, after the expiry of the period provided for by the national legislation, and in any case, after 3 years after the end of the taxable period. 3. The imposition of a permanent establishment that an enterprise of a contracting state has in the other contracting state will not be established under less favorable conditions in that other state than the imposition established by the undertakings of that other state carrying out the same activities. No provision contained in this Article shall be construed as obliging a Contracting State to grant to individuals, who are not resident in that State any of the deductions, facilitations and tax cuts, of a personal nature, which are granted to resident individuals, taking into account their marital status and family problems. 4. Enterprises of a Contracting State whose capital is held in whole or in part, directly or indirectly, by one or more residents of the other Contracting State, shall not be subject in the first Contracting State to any imposing or any bond in connection with it that is different or more burdensome than the imposition and obligations in relation to it to which the like undertakings of the first State mentioned are or may be subject. 5. The provisions of this Article shall apply to all taxes of any kind and name. + Article 27 Amicable procedure 1. When a resident of a Contracting State considers that due to the measures taken by one or both Contracting States result or will result for him a taxation which is not in accordance with this Agreement, he may, regardless of the remedies provided by the national legislation of these States, to submit to the competent authority of the Contracting State the resident of which it is resident. The case must be presented to the other contracting state within a period of 3 years from the date of communication of the tax resulting from a taxation that is not in accordance with the provisions of this Agreement. 2. The competent authority shall endeavour, if the complaint appears to be founded and if it itself is unable to bring an appropriate settlement, to resolve the case on the path of an amicable settlement with the competent authority of the other State contractor, in order to avoid taxation which is not in accordance with the provisions of this Agreement. 3. The competent authorities of the Contracting States shall endeavour to resolve on the path of the amicable procedure any difficulties or doubts resulting from the interpretation or application of this Agreement. They may also agree to avoid double taxation in cases not covered by this Agreement. 4. The competent authorities of the contracting states may communicate directly with each other, in order to achieve a settlement within the meaning of the preceding paragraphs. If, in order to facilitate this agreement, an oral exchange of views is needed, this exchange will have to be carried out through a committee made up of representatives of the competent authorities of the contracting states. + Article 28 Exchange of information 1. The competent authorities of the Contracting States shall exchange information necessary for the application of the provisions of this Agreement and of the national laws of the Contracting States in respect of the taxes covered by this Agreement, the extent to which taxation is not contrary to this agreement. Any information thus obtained will be kept secret, in so far as it is allowed by the legislation of the contracting states and will not be disclosed only to persons or authorities responsible for the establishment or collection of taxes provided for in this agreement. 2. The provisions of paragraph 1 of this article shall in no case be construed as imposing an obligation on a Contracting State: a) to take administrative measures contrary to the own legislation or administrative practice of one or the other Contracting State; b) to provide information that cannot be obtained on the basis of its own legislation or within the framework of its normal administrative practice of one or the other Contracting State; c) to provide information that would reveal a trade, business, industrial or professional secret, or information whose disclosure would be contrary to public order. + Article 29 Diplomatic and consular officials No provision of this agreement will affect the tax privileges enjoyed by diplomatic or consular officials, as well as other international organizations, by virtue of the general rules of international law or by virtue of international law. Special agreements. + Chapter 7 Final provisions + Article 30 Final provisions 1. This Agreement shall be subject to the approval in accordance with the constitutional provisions of each of the Contracting States and shall enter into force on the date of receipt of the last notification 2. The provisions of this Agreement shall apply as follows: a) in the case of Romania, for income and capital taxes related to the taxable period, from January 1 of the calendar year of entry into force of this Agreement; b) with regard to Costa Rica, with regard to the income obtained in a tax period, starting from October 1 to September 30 of the following year, or any other tax period expressly authorized by law. + Article 31 Denunciation This Agreement will remain in force for an indefinite period. Each Contracting State may denounce it by diplomatic means, by a notice of denunciation by 30 June of each calendar year, starting from the fifth year following that of the entry into force of the Agreement. In this case, this Agreement will cease to take effect on 31 December of the calendar year during which the denunciation will be notified. Signed in San José on July 12, 1991, in two original copies in Romanian and Spanish, both texts being equally authentic. -------------