Key Benefits:
Original text
(State 17 March 1986)
For the purposes of this Agreement:
1. Subject to the provisions of s. 3 of this Agreement, all profits and net income derived by an enterprise of one of the Contracting States from the exercise of air navigation shall be exempt in the other Contracting State from all taxes of that Contracting State of which it is or May be liable for profits and net income.
2. This Agreement does not, however, apply to municipal taxes in Venezuela. If Venezuela were to grant an exemption from its communal taxes in a similar future agreement with a third country, this exemption will apply automatically to this Agreement.
3. The provisions of this Article shall also apply to profits and net income arising from participation in a pool, a joint operation or an international operating agency.
1. The exemption under s. 2 shall apply to an enterprise of one of the Contracting States which regularly serves, during the calendar year of signature of this Agreement, an airport situated in the territory of the other Contracting State.
2. This exemption shall also apply, subject to an amicable agreement between the Contracting States, to an undertaking of one of the Contracting States which would subsequently operate a scheduled service to an airport situated on the Territory of the other Contracting State or to any other air navigation undertaking of one of the Contracting States which may be designated by one of the Contracting States.
The Contracting States shall endeavour, by mutual agreement, to resolve the difficulties or doubts which may be caused by the application of this Agreement through consultations.
This Agreement shall in no case be construed as granting the exemption provided for in Art. 2 to undertakings other than those defined in s. 1, para. B.
Each Contracting State shall notify the other as soon as possible in writing using the diplomatic channel the completion of the procedures required by its legislation for the implementation of this Agreement. This Agreement shall enter into force on the date of the last of those notifications and shall then apply to the net profits and revenues realized in the course of the social year following its entry into force.
This Agreement shall remain in force for an indefinite period, but it may be terminated by one of the Contracting States by giving six months' written notice to the other Contracting State and, in such a case, it shall cease to apply to Net profits and revenues realized after December 31 of the calendar year in which the notice is given.
In witness whereof, The undersigned, duly authorized by their respective Governments, have signed this Agreement.
Done at Caracas, on November 7, 1985, in duplicate in the French and Spanish languages, both texts being equally authentic.
For the |
Swiss Federal Council: |
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RO 1986 800