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

Subscribe to a Global-Regulation Premium Membership Today!

Key Benefits:

Get a Day Pass for only USD$19.99.
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 published in PARLIAMENT ISSUING the OFFICIAL GAZETTE NR. 19 of February 12, 1992 to ratify 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 tax on income and on capital, signed at San Jose on July 12, 1991.


Annex 1 agreement between the Governments of Romania and the Republic of Costa Rica concerning the avoidance of double taxation in respect of income tax and capital tax In the desire to promote and strengthen relations between the two countries in the internal affairs of Romania and the Government of the Republic of Costa Rica have agreed as follows: Chapter 1 article 1 persons covered this Agreement shall apply to persons who are residents of one or both of the Contracting States.


Article 2 Taxes covered 1. This agreement shall apply to taxes on income and on capital imposed by each Contracting State, or of their administrative-territorial units, without taking into account the perceptual system.
2. Are considered tax on income and on capital all taxes on total income, on total capital, or on elements of income or of capital, including taxes on revenue derived from the alienation of property or real estate, as well as taxes on capital revaluation.
3. The agreement shall apply to the following taxes: (a) existing) in regards to Romania:-the tax on income of individuals;
-tax on profits of legal persons;
-tax on wages and other similar remuneration;
-tax on income from agricultural activities;
-tax on profits of foreign subsidiaries and companies with foreign capital participation, established according to the Romanian legislation;
(hereinafter tax English) b) regarding Costa Rica:-income tax benefits to businesses and individuals carrying out activities thereof;
-income tax natural persons carrying out activities dependent;
-taxation of remittances.
(hereinafter referred to as Costa Rican tax)
This agreement shall apply also to any identical taxes or any analogous nature which would be required in addition to or in place of the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant change that will occur in the respective tax legislation by the end of each calendar year.


Chapter 2 article 3 General Definitions 1. For the purposes of this agreement, insofar as it does not establish context: a) the terms a Contracting State and the other Contracting State shall appoint in this context Romania and Costa Rica;
  

b) Romania Romania and means, used in a geographical sense, indicates the Romanian territory, including its territorial sea, and exclusive economic zone and its continental shelf to which Romania exercises sovereign rights in accordance with domestic law and international law relating to the exploration and exploitation of natural resources, existing biological and mineral waters, on the bottom and in the subsoil thereof;
  

c) Costa Rica Costa Rica and means, used in a geographical sense, indicates the territory of Costa Rica, including territorial and airspace or territorial waters, the continental shelf, as well as Costa Rica's economic zone over which they exercise the exclusive rights in accordance with its internal legislation and international law relating to the protection, preservation and exploitation of natural riches and resources in maritime waters , and in their basement;
  

d) includes a person physical person, a company and any other group of persons legally established in one of the Member States;
  

e) indicate any society, including representatives of legal persons and companies or firms formed on the basis of the Romanian laws or the laws of costaricane, or any entity which is treated as a body corporate for tax purposes in accordance with the tax legislation of each Contracting State;
  

f) terms enterprise of a Contracting State enterprise of the other Contracting State mean respectively an enterprise run by a resident of a Contracting State and an enterprise run by a resident of the other Contracting State;
  

g) national means all individuals having the nationality of a Contracting State and all legal entities or other entities formed on the basis of laws in force in a Contracting State;
  

h) the term international traffic means any transport by a ship or aircraft vehicle operated by an enterprise of a Contracting State, except when that carriage is carried out solely between places in the other Contracting State;
  

(I) the term competent authority) means: 1. in Romania, Minister of economy and finance or his authorised representative;
2. in Costa Rica, the Minister of finance or his authorised representative.
2. as regards the application of the agreement by either 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 which are the subject of the agreement, unless the context otherwise requires.


Article 4 1. For the purposes of this agreement, the term resident of a Contracting State means any person who, under the laws of that State, is subject to tax in that State by reason of his domicile, residence, place or administration or any criterion of a similar nature.
2. where, under the provisions of paragraph 1 of this article an individual is a resident of both Contracting States, the legal status they shall be determined in accordance with the following rules: a) is considered the resident of the Contracting State where it has a permanent home. If he has a permanent home in both Contracting States, it is considered to be the Contracting State residency with personal and economic activities are important;
  

b) if the Contracting State in which he holds the main activities cannot be determined, or if the person does not have a permanent home in any one of the Contracting States, shall be considered a Contracting State of residence where commonly reside;
  

(c) if such person owns) a home in both Contracting States or in neither of them, the State is considered residence whose contractor is national;
  

d) If this person is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
  

3. where under the provisions of paragraph 1 of this article, a person other than an individual is resident of both Contracting States, in this case will be deemed the residence of the Contracting State in which the headquarters of his flocks.


Article 5 1. For the purposes of this agreement, the term permanent establishment means a fixed place through which the enterprise operates, in whole or in part, to his work.
2. the term permanent establishment includes especially: a a place of leadership);
  

b) a branch;
  

c) an Office;
  

d) a factory;
  

e) a workshop;
  

f) a mine, a quarry or any other place of extraction of natural resources;
  

g) a construction site or installation, insofar as the period exceeding 12 months.
  

3. the term permanent establishment does not include: (a) an installation) use solely for the purpose of storage, display or delivery of goods or merchandise on the basis of a contract of sale of goods or merchandise belonging to the enterprise;
  

b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
  

c) maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of being absorbed by another undertaking;
  

d) sale of goods or merchandise belonging to the enterprise, exhibited as part of a temporary exhibition or fair after closing the market or exhibition;
  

e the maintenance of a fixed place) solely for the purpose of purchase of goods and products or for the collection of information for the enterprise;
  

f the maintenance of a fixed place), used exclusively for the enterprise in order to advertise, to provide information, for scientific research or for similar activities which have a junior or auxiliary character, for the enterprise.
  

4. A person working in a Contracting State on behalf of an enterprise of the other Contracting State, other than an agent of an independent status within the meaning of paragraph 5, shall be considered a permanent establishment in the first Contracting State if it has power in this state that you exercise routinely, let him to conclude contracts on behalf of the enterprise, provided that this activity is not limited to the purchase of goods or merchandise for the enterprise.
5. An enterprise of a Contracting State shall not be considered to have a permanent establishment in the other Contracting State merely because of the fact that it carries on its business in that other State through a broker, general Commission agent or any other agent of an independent status, provided that such persons acting in the ordinary course of their business.

6. the fact that a company which is resident of a Contracting State controls or is controlled by a company which is resident of the other State (whether through a permanent establishment or otherwise) is not in itself enough to make one of these company a permanent establishment of the other.


Chapter 3 Article 6 income from immovable property 1. Income from immovable property, including income from agriculture and forestry, may be taxed in the Contracting State in which such property is situated.
2. the term immovable property shall have the meaning which it has under the law of the Contracting State in which the goods in question is situated. The term shall include, in any case, all the accessories, property, livestock and equipment used in the exploitation of agricultural and forestry, rights to which the provisions of general law respecting landed property, usufruct of immovable property and rights to variable or fixed amounts for the exploitation of mineral deposits and other natural resources, or that the price of the right of exploitation; vessels and aircraft are not considered real estate.
3. The provisions of paragraph 1 of this article shall apply to income derived from the direct exploitation, rental or leasing, as well as from any form of exploitation of real estate.
4. The provisions of paragraphs 1 and 3 of this article shall also apply to the income from immovable property of an enterprise and income from immovable property used for the exercise of independent professions.


Article 7 the benefits of undertaking 1. The benefits of an enterprise of a Contracting State may be subject to tax in that Contracting State unless the enterprise exerts the activity in the other Contracting State through a permanent establishment situated therein. If the undertaking to practise in this way, the benefits of the enterprise may be taxed 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, an enterprise of a Contracting State to exercise its activity in the other Contracting State through a permanent establishment situated in that other Contracting State, shall be assigned to each State, to that permanent establishment, the benefits that could be expected if they had established a distinct and separate enterprise, exercised the same or similar activities in the same or similar conditions, and with all the warning with independent undertaking whose registered office is permanent.
If the undertaking to practise in this way, the benefits of the enterprise may be taxed in the other Contracting State but only to the extent that they are attributable to that permanent establishment.
3. To determine the benefits of a permanent Office are admitted to decrease expenditure incurred for the purposes intended by this permanent establishment, including Executive and general administrative expenses, regardless of the fact that have been conducted in the State in which the permanent establishment is situated or elsewhere.
4. To the extent that in a Contracting State shall be accepted as benefits attributable to a permanent establishment should be determined on the basis of the total benefits to be taxed to the enterprise or between its component parts nothing in paragraph 2 of this article shall preclude that Contracting State from determining the profits to be taxed to benefits according to the usual distribution; However the method of apportionment adopted shall be of such nature that the result obtained conforms with the principles contained in this article.
5. No benefit shall be attributed to a permanent establishment for the simple fact that it buys goods or merchandise for the enterprise; However if this permanent establishment sells these goods and commodities, the benefit will attribute.
6. In order to implement the provisions of the preceding paragraphs, the benefits attributable to a permanent establishment ends each year, using the same method, except for the case when there are valid and sufficient reason to the contrary.
7. When the benefits include income dealt with 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 derived from mining operations of vessels, aircraft and vehicles in international traffic shall be taxable only in the State in which is situated the effective leadership of the company.
2. If the place of effective management of a shipping enterprise is located aboard a ship, this place is considered located in the Contracting State in which the port is located the ship or base, if there is no such port, in the State in which the vessel is operating.
3. the provisions of paragraph 1 of this article shall also apply to the benefits derived from the participation in a pool, a joint operation or through an international body.
4. With all the provisions of the provisions of paragraph 1 of this article and of article 23. 7, the benefits coming from farms, air battles and road by an enterprise of a Contracting State, mainly used for transport solely between two points situated in a Contracting State shall be taxable in that State.


Article 9 associated enterprises When an enterprise: (a)) of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State and, in one case either in the other, the two businesses are related in their commercial or financial relations through accepted or imposed conditions which differ from those which would have been made between independent enterprises, the benefits that these conditions would have been obtained from one of the businesses, but they could not be obtained due to these conditions, may be included in the benefits of that enterprise and taxed in consequence.
  


Article 10 Dividends 1. Dividends paid by a company which is resident of a Contracting State to a resident of the other Contracting State, may be taxed in the other State.
2. However, such dividends may also be taxed in the Contracting State in which the company paying the residence, according to the laws of that Contracting State; When the recipient is the beneficial owner of the dividends, and the topic of tax in the other Contracting State the tax so charged shall not exceed: a 5 per cent of the total) gross dividends if the beneficial owner is a company other than societies which would utilize directly at least 25% of the capital of the company to the Subscriber;
  

b) 15% of the total gross domestic product of the dividends in all other cases. The competent authorities of the Contracting States shall determine by mutual agreement, form of application of these limitations.
  

The provisions of this paragraph shall not affect the taxation of the company for the proceeds of which were paid dividends.
3. the term dividends, used in this article means income from shares, rights of use, from the sides, from the sides of the founder, or other rights, except in the case of claims, as well as other income assimilated to income from shares under the actions with tax law of the Contracting State in which the company making the distribution is resident.
4. The provisions of paragraphs 1 and 2 of this article shall not apply if 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 situated therein, and the holding of shares by virtue of which the dividends are paid is effectively connected with the activities carried out by such permanent establishment or fixed base. In this situation applies the provisions of art. 7 or 15, as applicable.
5. where a company which is a resident of a Contracting State carries out the benefits or income from the other Contracting State, this other State cannot charge any tax on the dividends paid by the company, than to the extent that the participation of generating dividends is effectively connected with a permanent establishment or a fixed base situated in that other State, nor to claim any tax with the title of tax benefits that, upon company's undistributed benefits, even if the dividends paid or the undistributed benefits consist, in whole or in part, of benefits or income arising from that other State.


Article 11 Interest 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such interest may also be taxed in the Contracting State in which it arises, in accordance with the legislation of that State; If the beneficial owner of the interest is subject to tax in the other State, the tax so charged shall not exceed 10% of total gross income.
The provisions of paragraph 2 of this article shall not apply to interest paid by virtue of a loan granted and guaranteed, directly or indirectly, of a Contracting State, an administrative-territorial unit or a public body (includes financial institutions or banks).

3. the term interest, as used in this article, indicate the income from debt-claims of every kind, whether or not secured by mortgage and whether or not a right to participate in profits, and in particular, income from securities, effects or public obligations, including awards and bonuses for these effects, or titles. Penalty charges for late payment shall not be regarded as interest for the purpose of this article.
4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State has in the other State, where the company paying the interest is resident, a permanent establishment, or performs independent personal services from a fixed base situated therein, and the debt by virtue of which interest is paid is effectively connected with the activities carried on through a permanent establishment or fixed base. In this situation applies the provisions of art. 7 or 15, as applicable.
5. Interest shall be treated as originating 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 paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness was incurred over which interest is charged and such interest shall bear that permanent establishment or fixed base also, interest shall be considered as originating in the Contracting State in which the permanent establishment is situated or fixed base.
6. When, by reason of the special relations that exist between the borrower and lender or between both of them and some other person, the amount of the interest exceeds the amount that would be agreed upon in the absence of such relationship, the provisions of this article shall apply only to this last mentioned amount. In this case, the excess part of the payments for the taxable according to the laws of each Contracting State, due to the other provisions of this agreement.


Article 12 Fees 1. Fees arising in a Contracting State and a resident of the other Contracting State may be taxed in that other State.
2. However, such fees may be taxed in the Contracting State in which they arise and according to the laws of that State, but if the person who receives the Commission is beneficial, the tax so charged neputind exceed 5% of the gross amount of the fee.
3. the term of any amounts paid commissions indicate individuals for services rendered as an intermediary, Commission or any other person assimilated to an intermediary or agent by the tax law of the Contracting State in which they arise such amounts.
4. The provisions of paragraph 1 and 2 of this article shall not apply if the beneficial owner of the fee, being a resident of a Contracting State has in the other Contracting State in which a permanent establishment fee, and obtain Commission is directly connected with such permanent establishment. In such case, the provisions of article 362 are applied. 7.5. The Commission shall be considered as originating in a Contracting State when the payer is that State itself, a territorial-administrative unit or a resident of that State. However, when the person paying the fee, whether or not resident in a Contracting State, has in a Contracting State the obligation of payment of Commission and such fee shall be borne by the permanent establishment, then the Commission will consider that originates in the Contracting State in which the permanent establishment is situated.
6. where by reason of the special relations that exist between the borrower and lender or between both of them and some other person the amount of commissions exceeds, for whatever reason, the amount which would have been agreed upon in the absence of such relationship, the provisions of this article shall apply only to this last mentioned amount. In this case, the excess part of the payments under the legislation remains taxable each Contracting State, due to the other provisions of this agreement.


Article 13 Royalties 1. Royalties obtained in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.
2. However, such royalties may also be taxed in the Contracting State and from which it arises according to the laws of that State, but if the beneficial owner of the royalties is subject to tax in the other State, the tax so charged shall not exceed 10% of the gross amount of fees 3. The term royalties as used in this article, indicate the amounts of any kind received as consideration for the use of, or the right of use of a copyright of a literary, scientific or artistic works, including cinematographic films, films and magnetic strips intended for radio and television, and has a patent, trademark or trade factory design pattern plan, some secret formulas or processes, as well as for the right to use and right of use of an industrial, commercial or scientific, or for information on experience in the field of industrial, commercial or scientific.
4. The provisions of paragraphs 1 and 2 of this article shall not apply if the beneficial owner of the royalties is a resident of a Contracting State and the other Contracting State where the company paying the royalties is a resident a permanent establishment or a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with the activities carried out by such permanent establishment or fixed base. In such event, the provisions of article 5 shall apply. 7 or 15, as applicable.
5. royalties are regarded as arising in a Contracting State when the payer is that State itself, a territorial-administrative unit or a resident of that State. However, when the person paying the royalties, whether he is or not residence in a Contracting State a permanent establishment or a fixed base, such fees are considered as originating in the Contracting State in which the permanent establishment is situated or fixed base.
6. where by reason of the special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed between the payer and the recipient in the absence of such relationship, the provisions of this article shall apply only to this last mentioned amount.
In this case, the excess part of the payments under the legislation remains taxable each Contracting State, due to the other provisions of this agreement.


Article 14 of the capital Earnings 1. Gains arising from the alienation of immovable property, as are defined in paragraph 2 of article 4. 6 shall be taxable in the Contracting State in which they are located.
2. gains arising from the alienation of movable goods forming part of the business property of a permanent establishment which an enterprise of a Contracting State in the other Contracting State or of movable property belonging to a fixed base available to a resident of a Contracting State in the other Contracting State independent personal exercise of professions, including gains arising from the alienation of that permanent establishment (alone or with the whole enterprise) , or fixed base shall be taxable in that other State.
3. Gains from the alienation of ships, aircraft and vehicles and road vehicles operated in international traffic and movable property associated with this operation are not taxable in the Contracting State in which, in accordance with the second subparagraph of article stipularile. 8, gains from such activities are taxable.
4. Gains from the alienation of property, other than those referred to in paragraphs 1, 2 and 3 of this article, shall be taxable only in the Contracting State of which the transferor is resident Article 15 independent Professions 1. Income derived by a resident of a Contracting State from exercising a profession or other independent activities with similar character shall be taxable only in that State unless such resident has a fixed base available to him in the other Contracting State for the purpose of exercising his activity. If he has such a fixed base, the income may be taxed in the other Contracting State.
2. the term includes especially independent professions independent scientific, literary, artistic, educational or teaching activities as well as the exercise of the profession of doctor, lawyer, engineer, architects, dentists and accountants.


Article 16 dependent Professions 1. Subject to the provisions of article 7. 17, 19, 20, 21, 22, and soldele wages and other similar remuneration derived by a resident of a Contracting State receives for the employment shall be taxable only in that State, provided that the activity is exercised in the other Contracting State. If the activity is exercised in the other Contracting State, the remuneration received from this activity is liable to tax in that other State. 2. By way of derogation from the provisions of paragraph 1 of this article, remuneration which a resident of a Contracting State receives for his work wage, exercised in the other Contracting State, if: a) the remains in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in the tax year, and b the remuneration is paid) by an individual or on behalf of a person who committed and not to other State residency and c the remuneration is not borne by) by a permanent establishment or a fixed base which the one who commits it has in the other State.

  

3. By way of derogation from the provisions of the preceding provisions of this article, remuneration for the performance of gainfully employed on board a vessel, aircraft and road vehicles operated in international traffic is taxable in the Contracting State in which the place of effective management is situated in the enterprise.


Article 17 the remuneration of Board members Tantiemele, chips and other remuneration received by a resident of a Contracting State in his capacity as a member of the Board of directors or supervisory bodies of a company resident in the other Contracting State shall be taxable in that other State.


Article 18 Artistes and athletes 1. By way of derogation from the provisions of art. 15 and 16, income derived by a resident of a Contracting State, as professionals, such as a theatre, motion picture, radio or television and musical interpreters, and athletes, from their professional activity exercised in the other Contracting State, may be taxed in that other State 2. When the income in respect of personal activities of such professional performances or athlete accrues not its but to another person, by way of derogation from the provisions of art. 7, 15 and 16, that income may be taxed in the Contracting State in which the activities are exercised or performances of pro athlete.
3. Income derived from such activities in the framework of a special program for cultural exchange between the Contracting States, shall be exempt from taxation on each other.


Article 19 Pensions subject to the provisions of article 3. 20, pensions and other similar remuneration paid to a resident of a Contracting State by a previous activity are not taxable in that State, if a national law stipulates.


Article 20 public officials 1. a) remuneration, other than a pension, paid by a Contracting State or an administrative-territorial unit of an individual in connection with services rendered to the Government of that State or an administrative-territorial unit, it will require only in that State.

b) However, such remuneration shall be taxable in that other Contracting State only if the services are rendered in that State and the recipient is a resident if the remuneration of that State who: (i) possess the nationality of that State, or () did not become a resident of that State solely for the purpose of rendering the services.
2. the provisions of article 4. 16, 17 and 19 shall apply to remuneration paid by virtue of the services rendered within the framework of activities for a Contracting State or an administrative-territorial unit.


Article 21 Teachers Remuneration of teachers and other faculty members, residents of a Contracting State, who teach or carrying out research at a university or any other educational institution, officially recognized by the other Contracting State, shall not be taxed in the first State.


Article 22 students and interns the sums which a student or business apprentice who is or was before the resident of a Contracting State and who lives in the other Contracting State solely for the purpose of continuing studies, it receives to cover the costs of maintenance, education or training, are not taxable in that other State provided that they come from outside sources, this other State.


Chapter 4 capital tax tax article 23 capital 1. The capital made up of immovable property, as defined in paragraph 2 of article 4. 6, shall be taxed in the Contracting State in which such property is situated.
2. capital goods consisting of forming part of the business property of a permanent establishment of an enterprise, or chattels belonging to a fixed base used for the practice of professions is taxable in the Contracting State in which the permanent establishment is situated or fixed base.
3. ships, aircraft and road vehicles operated in international traffic and movable property belonging to such exploitation shall be required only in the Contracting State in which is situated the effective leadership of the company.
4. All other elements of capital of a resident of a Contracting State shall be taxable in that State.


Article 24 other income items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Agreement shall be taxable in that State.


Chapter 5 Article 25 methods of avoidance of double taxation 1. Double taxation will be avoided in the following manner: with regard to Romania, the tax payable by a resident of Romania's capital and income obtained in Costa Rica, in accordance with the provisions of this agreement, shall be deducted from the total tax payable under the laws of the Romanian, Romanian tax.
This deduction may not exceed the tax fraction calculated before deduction corresponding to elements of income received in that other State.
2. With regard to Costa Rica, proceeds in the other Contracting State shall be exempt in their entirety.


Chapter 6 General provisions article 26 non-discrimination 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which obligations are or may be subjected to nationals of that other State are in the same situation. By way of derogation from the provisions of art. 1, this provision shall also apply to nationals of a Contracting State who are not residents of any of the Contracting States.
2. A Contracting State shall not increase taxation to a resident of the other Contracting State, including items of income that have already been taxed in the other Contracting State shall, after the expiry of the period laid down by national legislation, and in any event after three years from the end of the reporting period.
3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be established on terms less favourable in that other State than the taxation established enterprises of that other State carrying on the same activities.
Nothing contained in this article shall not be construed as obliging a Contracting State to grant to individuals not resident in that State any of the deductions, benefits and reductions in taxation, personal information, which are granted to individuals so resident, taking into account their condition to their civil and family matters.
4. Enterprises of a Contracting State whose capital is owned in whole or in part, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the other Contracting State to any taxation or any bond in connection therewith to be other or more burdensome than the taxation and obligations in relation to which they are or may be subject to similar enterprises of the first-mentioned State.
5. the provisions of this article shall apply to all taxes of any kind and name.


Article 27 mutual agreement Procedure 1. Where a resident of a Contracting State considers that the measures taken by one or both of the Contracting States result or will result for him a tax which does not comply with this agreement, he may, irrespective of the remedies provided for by national law of those States, to submit the case to the competent authority or of the Contracting State of which he is a resident. The case must be presented within the other Contracting State for a period of 3 years from the date of communication of tax resulting from a tax which does not comply with the provisions of this agreement.
2. the competence of the Authority shall endeavour, if the objection appears to it to be justified and them if it is not itself in so far as to make a proper settlement 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 provisions of this agreement.
3. the competent authorities of the Contracting States shall endeavour to resolve by mutual procedure any difficulties or doubts arising as to the interpretation or application of this agreement. They may also have to reach agreement to avoid double taxation in cases not provided for in this agreement.
4. the competent authorities of the Contracting States may communicate directly with one another in order to achieve an agreement in the sense of the preceding paragraphs. If in order to facilitate this agreement, it takes an oral exchange of opinions, this Exchange will have to be done through a Commission consisting 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 such information as is necessary for the application of the provisions of this agreement and of the national laws of the Contracting States concerning taxes covered by this agreement insofar as the taxation is not contrary to this agreement.
Any information so obtained will be secret outfit, insofar as this is permitted by the laws of the Contracting States and shall not be divulged to persons or authorities, than with the assessment or collection of taxes provided for in this agreement.
2. the provisions of paragraph 1 of this article shall not in any event be interpreted as impunind on a Contracting State the obligation: (a)) to take administrative measures at variance with the laws or administrative practice, own one or the other Contracting State;
  


b) to supply information that cannot be obtained on the basis of legislation or administrative practice within his normal one or of the other Contracting State;
  

c) to supply information which would reveal a trade secret, business, industrial or professional, or information the disclosure of which would be contrary to public policy.
  


Article 29 diplomatic and Consular Officials any provision of this Agreement shall affect the fiscal privileges enjoyed by diplomatic or consular officials, as well as other international organizations, by virtue of general rules of international law or under the provisions of special agreements.


Chapter 7 final provisions Article 30 final provisions 1. This agreement shall be subject to 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 of approval.
2. the provisions of this agreement will be effective as follows: a) if Romania, for taxes on income and on capital expenditure incurred in this reporting period, from 1 January of the calendar year of the entry into force of this agreement;
  

b) regarding Costa Rica, with respect to proceeds in a fiscal period, beginning 1 October until 30 September of the following year or any other period approved by tax law.
  


Article 31 Termination this Agreement shall remain in force for an indefinite period. Each Contracting State may denounce it diplomatically, through a notice of termination is given up to June 30 of each calendar year, starting from the fifth year following the entry into force of the agreement. In this case, this Agreement shall cease to have effect on 31 December of the calendar year during which the denunciation will be notified.
Signed in San Jose on July 12, 1991, in two original copies in Spanish and Romanian languages, both texts being equally authentic.
-------------

Related Laws