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RS 0.672.978.55 Agreement of 7 November 1985 between the Swiss Federal Council and the Government of the Republic of Venezuela to avoid double taxation in respect of air transport

Original Language Title: RS 0.672.978.55 Accord du 7 novembre 1985 entre le Conseil fédéral suisse et le Gouvernement de la République du Venezuela en vue d’éviter la double imposition en matière de transports aériens

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0.672.978.55

Original text

Agreement

Between the Swiss Federal Council and the Government of the Republic of Venezuela with a view to avoiding double taxation in respect of air transport

Concluded on 7 November 1985
Entered into force by exchange of notes on 17 March 1986

(State 17 March 1986)

The Swiss Federal Council and the Government of the Republic of Venezuela,

Desiring to conclude an agreement with a view to avoiding double taxation in respect of taxes on profits and net income of air navigation undertakings,

Have agreed as follows:

Art. 1

For the purposes of this Agreement:

A.
The expressions "one of the Contracting States" and "the other Contracting State" refer, according to the context, to the Swiss Confederation or the Republic of Venezuela.
B.
The term "enterprise of one of the Contracting States" means an air navigation undertaking whose actual direction is in that Contracting State and which is carried on either by a resident of that Contracting State and not resident In the other Contracting State or by a partnership or capital created and organised in accordance with the legislation in force in the first State. The expression shall be deemed to include any activity carried on by one of the Contracting States, its political subdivisions or local authorities through an enterprise or by a company of a Contracting State in which that State One of its political subdivisions or local authorities has an interest.
C.
The term "air navigation exercise" refers to the professional carriage of passengers, cargo and mail by the owner, lessee or charterer of aircraft.
Art. 2

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.

Art. 3

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.

Art. 4

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.

Art. 5

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.

Art. 6

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.

Art. 7

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:

For the Government

From the Republic of Venezuela:

Bernardino Sciolli

Simon Alberto Consalvi


RO 1986 800


Status March 17, 1986