CONVENTION

Between the Grand Duchy of Luxembourg and the Argentine Republic for the elimination of double taxation with regard to taxes on income and on capital and for the prevention of tax evasion and fraud

The Grand Duchy of Luxembourg and the Argentine Republic

Anxious to promote their economic relations and improve their cooperation in tax matters,

Intending to conclude a Convention for the elimination of double taxation with respect to taxes on income and on capital without creating possibilities of non-taxation or of taxation reduced by tax avoidance or fraud (including by treaty shopping mechanisms intended to obtain the relief provided for in this Convention for the indirect benefit of residents of third States),

Have agreed as follows:

SCOPE OF THE CONVENTION

Article 1 – PERSONS CONCERNED

1.This Convention applies to persons who are residents of a Contracting State or of both Contracting States.

2.For the purposes of this Convention, income received by or through an entity or arrangement considered to be wholly or partially transparent for tax purposes under the tax legislation of one of the Contracting States shall be deemed to be the income of a resident of ‘a Contracting State, but only to the extent that such income is treated, for the purposes of taxation by that State, as the income of a resident of that State.
3.This Convention shall not affect the taxation by a Contracting State of its residents, except with regard to the advantages granted under paragraph 2 of article 9 and articles 18, 19, 20, 23, 24, 25 and 27.

Article 2 – TAXES COVERED

1.This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State, of its political subdivisions or of its local authorities, whatever the system of levying.

2.Taxes on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable property, are regarded as taxes on income and on capital. or real estate, as well as capital gains taxes.

3.The current taxes to which the Convention applies are in particular:

a) in Argentina:
i) income tax (Impuesto a las Ganancias); and
ii) the personal property tax (Impuesto sobre los Bienes Personales);
(hereinafter referred to as “Argentine tax”);

b)in Luxembourg:
i) personal income tax;
ii) corporate income tax;
iii) wealth tax; and
iv) municipal business tax;
(hereinafter referred to as “Luxembourg tax”).

4.The Convention also applies to taxes of an identical or similar nature which are established after the date of signature of the Convention and which are added to or replace existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes made to their tax laws.

DEFINITIONS
Article 3 – GENERAL DEFINITIONS

1.For the purposes of this Convention, unless the context requires a different interpretation:

a) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Argentina or Luxembourg;b) the term “Argentina” designates the territory subject to the sovereignty of the Argentine Republic, in accordance with its constitutional and legal provisions and the term “Luxembourg” designates the Grand Duchy of Luxembourg and, when used in a geographical sense, it designates the territory of the Grand Duchy of Luxembourg;

c) the term “person” includes an individual, a company and any other body of persons;
d) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
e) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
f) the term “international traffic” means any transport effected by a ship or aircraft operated by an enterprise the place of effective management of which is in a Contracting State, except when the ship or aircraft is operated only between points located in the other Contracting State;
g) the term “national” means:
i) any natural person who has the nationality of a Contracting State; and
ii) any legal person, partnership or association constituted in accordance with the legislation in force in a Contracting State;

h) the expression “competent authority” means:
i) in the case of Argentina, the Minister of the Treasury or his authorized representative; and
ii) in the case of Luxembourg, the Minister of Finance or his authorized representative.

2.For the application of the Convention at any given time by a Contracting State, any term or expression not defined therein has, unless the context requires a different interpretation or the competent authorities agree on a different meaning in accordance with provisions of Article 25, the meaning assigned to it at that time by the law of that State relating to the taxes to which the Convention applies, the meaning given to this term or expression by the fiscal law of that State prevailing over the meaning attributed to it by the other branches of the law of that State.

Article 4 – RESIDENT

1.For the purposes of this Convention, the expression “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax in that State by reason of his domicile, his residence, place of management, place of registration or any other criterion of a similar nature and also applies to that State as well as to all its political subdivisions or to its local communities. However, this expression does not include persons who are subject to tax in a Contracting State only on income from sources situated in that State or on capital situated there.

2.Where, in accordance with the provisions of paragraph 1, a natural person is a resident of both Contracting States, his situation shall be settled as follows:
a) that person is considered to be a resident only of the State in which he has a permanent home; if he has a permanent home in both states, he is considered a resident only of the state with which his personal and economic ties are closest (center of vital interests);
b) if the State where that person has the center of his vital interests cannot be determined, or if he does not have a permanent home in any of the States, he is considered to be a resident only of the State where she stays in the usual way;
c) if that person is habitually resident in the two States or if he does not habitually reside in either of them, he is considered to be a resident only of the State of which he is a national;
d) if this person has the nationality of both States or if he does not have the nationality of either of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3.Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, it shall be deemed to be a resident only of the State in which its place of effective management is situated.

Article 5 – STABLE ESTABLISHMENT

1.For the purposes of this Convention, the expression “permanent establishment” means a fixed place of business through which an enterprise carries out all or part of its activity.

2.The term “permanent establishment” includes especially:

a) an executive seat,
b) branch,
c) a desk,
d) factory,
e) a workshop and
f) a mine, an oil or gas well, a quarry or any other place of exploration, exploitation or extraction of natural resources.

3.The term “permanent establishment” also includes:
a) a construction, assembly or dredging site or any surveillance activities carried out there, but only when this site or these activities last more than six months;
b) the provision of services by a company, including consultancy services, acting through employees or other personnel engaged by the company for this purpose, but only when activities of this nature are continued (for the same project or related project) in the territory of a Contracting State for a period or periods totaling more than six months within any period of twelve months.

4.Notwithstanding the preceding provisions of this article, it is considered that there is no “permanent establishment” if:

a) facilities are used for the sole purpose of storing, displaying or delivering goods belonging to the company;
b) goods belonging to the company are stored for the sole purpose of storage, display or delivery;
c) goods belonging to the company are stored for the sole purpose of processing by another company;
d) a fixed place of business is used for the sole purpose of purchasing goods or gathering information, for the business;
e) a fixed place of business is used solely for the purpose of carrying on, for the enterprise, any other activity;
f) a fixed place of business is used solely for the purpose of carrying on the activities mentioned in subparagraphs a) to e),

provided that this activity or, in the case referred to in paragraph f), the overall activity of the fixed place of business, is of a preparatory or auxiliary character.

5.Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent enjoying an independent status to which paragraph 6 applies – acts on behalf of an enterprise and has powers in a Contracting State which ” it habitually carries out there enabling it to conclude contracts on behalf of the enterprise, this enterprise is considered to have a permanent establishment in that State for all the activities that this person carries out for the enterprise, unless the activities of that person are not limited to those mentioned in paragraph 4 and which, if carried on through a fixed place of business,would not allow this installation to be considered as a permanent establishment under the provisions of this paragraph.

6.An enterprise of a Contracting State shall not be considered as having a permanent establishment in the other Contracting State merely because it carries on business there through a broker, a commission agent or any other other agent enjoying an independent status, provided that these persons act within the ordinary framework of their activity. However, when the activities of such an agent are carried out exclusively or almost exclusively for the account of this company, and conditions have been agreed or imposed between this company and this agent, in their commercial and financial relations, which are different from those which would have been agreed between independent companies, he is not considered to be an independent agent within the meaning of this paragraph.
7.Whether 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 carries on business there (whether through an establishment stable or not) is not in itself sufficient to make any one of these companies a permanent establishment of the other.

TAXATION OF REVENUES
Article 6 – REAL ESTATE INCOME

1.Income derived by a resident of a Contracting State from immovable property (including income from agriculture, livestock or forestry) situated in the other Contracting State may be taxed in that other State.

2.The expression “immovable property” has the meaning assigned to it by the law of the Contracting State in which the property in question is situated. The expression includes in all cases the accessories, the dead or alive livestock of agricultural holdings, live and forest livestock, the rights to which the provisions of private law apply concerning land ownership, the usufruct of immovable property and the rights to variable or fixed payments for the exploitation or the concession of the exploitation of mineral deposits, sources and other natural resources. Ships, boats and aircraft are not considered real property.

3.The provisions of paragraph 1 apply to income derived from the direct exploitation, rental or leasing, as well as from any other form of exploitation of immovable property.

4.The provisions of paragraphs 1 and 3 also apply to income from immovable property of a business as well as to income from immovable property used for the exercise of an independent profession.

Article 7 – BUSINESS PROFITS

1.The profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on business in the other Contracting State through a permanent establishment situated there. If the business carries on business in such a way, the profits of the business are taxable in the other State, but only to the extent that they are attributable to that permanent establishment.

2.Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on its activity in the other Contracting State through a permanent establishment situated therein, it shall be charged, in each Contracting State, to this permanent establishment the profits that it could have made if it had set up a separate enterprise carrying out identical or similar activities under identical or similar conditions and dealing in complete independence with the enterprise of which it constitutes a permanent establishment.

3.To determine the profits of a permanent establishment, expenses incurred for the purposes pursued by that permanent establishment are allowed as deduction, including management expenses and general administrative expenses thus incurred, either in the State in which the said establishment is located. permanent establishment or elsewhere.

4.While it is customary in a Contracting State to determine the profits attributable to a permanent establishment on the basis of an allocation of the total profits of the enterprise among its various parts, nothing in paragraph 2 shall prevent this from doing so. Contracting State to determine the taxable profits according to the distribution in use; the distribution method adopted must, however, be such that the result obtained complies with the principles contained in this article.

5.Notwithstanding the provisions of paragraph 1, the profits of an enterprise of a Contracting State derived from insurance or reinsurance activities by insuring property situated in the other Contracting State or persons who are residents thereof at the time of the signing of the insurance contract, are taxable in that other State, whether or not the enterprise carries out these activities through a permanent establishment located there. However, in the absence of a permanent establishment, the tax imposed in that other State may not exceed 2.5 per cent of the gross amount of the premium.

6.For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment are determined each year using the same method, unless there are valid and sufficient reasons for proceeding otherwise.

7.Where profits include items of income treated separately in other articles of this Convention, the provisions of those articles shall not be affected by the provisions of this article.

Article 8 – MARINE, INLAND AND AIR NAVIGATION

1.Profits from the operation, in international traffic, of ships or aircraft are taxable only in the Contracting State where the place of effective management of the enterprise is situated.

2.Profits from the operation of vessels used for inland navigation are taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

3.If the place of effective management of a maritime or inland navigation enterprise is on board a ship or boat, this place of business shall be deemed to be situated in the Contracting State in which the home port of that ship is located. or of that vessel, or where there is no home port, in the Contracting State of which the operator of the vessel or vessel is a resident.

4.The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

Article 9 – ASSOCIATED COMPANIES

1.When:
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 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 that, in either case, the two companies are, in their commercial or financial relations, bound by conditions agreed or imposed, which differ from those which would be agreed between independent companies, the profits which, without these conditions, would have been fulfilled by one of the undertakings, but could not in fact be fulfilled because of these conditions, can be included in the profits of that undertaking and taxed accordingly.

2.Where a Contracting State includes in the profits of an enterprise of that State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been taxed in that other State, and the profits so included are profits which would have been realized by the enterprise of the first State if the conditions agreed between the two enterprises had been those which would have been agreed between independent enterprises, the other State makes an appropriate adjustment of the amount of tax therein. been levied on these profits. In determining this adjustment, account shall be taken of the other provisions of this Convention and, if necessary, the competent authorities of the Contracting States shall consult each other.

Article 10 – DIVIDENDS

1.Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other Contracting State.

2.However, dividends paid by a company which is a resident of a Contracting State may also be taxed in that State under the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax thus established cannot exceed:

a) 10 percent of the gross amount of the dividends if the beneficial owner is a company which directly owns at least 25 per cent of the capital of the company which pays the dividends throughout a period of 365 days including the day of payment of the dividends ( changes in ownership that would result directly from a reorganization, such as a merger or demerger, are not taken into account for the purposes of calculating this period);

b) 15 percent of the gross amount of the dividends, in all other cases.

This paragraph does not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3.The term “dividends” used in this article means income from shares, shares or profit-sharing certificates, mine shares, founder’s shares or other beneficiary shares with the exception of claims, as well as income from other shares. Social security is subject to the same tax regime as income from shares by the legislation of the State of which the distributing company is a resident.

4.The provisions of paragraphs 1 and 2 do not apply, where the beneficial owner of the dividends, resident in a Contracting State, exercises in the other Contracting State of which the company paying the dividends is a resident, either an industrial activity or business through a permanent establishment located there, or an independent profession through a fixed base located there, and that the dividend-generating participation is effectively attached to it. In this case, the provisions of article 7 or article 14, as the case may be, 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 levy any tax on the dividends paid by the company, except to the extent that such dividends are paid to a resident of that other State or to the extent that the dividend-generating participation is effectively attached to a permanent establishment or a fixed base situated in that other State, nor levy any tax, in respect of the taxation of profits undistributed, out of the undistributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or in part of profits or income 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, interest arising in a Contracting State may also be taxed in that State under the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so established may not exceed 12 for cent of the gross amount of interest.

3.Notwithstanding the provisions of paragraph 2, interest shall be exempt from tax in the Contracting State from which it arises, in the case of:

a) interest on trade receivables including receivables represented by commercial paper resulting from deferred payments for machinery or equipment supplied by an enterprise, except when such interest is paid between associated enterprises;
b) interest on loans of any kind – which are not represented by bearer securities – granted on preferential terms;
c) interest paid in respect of a loan, claim or credit which is due to that State or granted, granted, guaranteed or insured by the other Contracting State or by the Central Bank, one of its political subdivisions, local communities or export financing agencies.

4.The term “interest” used in this article designates income from debts of any kind, whether or not accompanied by mortgage guarantees or a profit-sharing clause of the debtor, and in particular income from public funds and loan obligations. , including the bonuses and prizes attached to these securities. Penalties for late payment are not considered as interest within the meaning of this article.

5.The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the interest, resident in a Contracting State, exercises in the other Contracting State from which the interest arises, either an industrial or commercial activity through the intermediary a permanent establishment located there, or an independent profession by means of a fixed base located there, and that the interest-generating claim is actually attached to it. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.

6.Interest is considered to have accrued in a Contracting State when the debtor is a resident of that State. However, where the debtor of interest, whether or not a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the debt giving rise to the payment of interest has been contracted and which bears the cost of these interests, they are considered to come from the State where the permanent establishment, or the fixed base, is located.

7.When, by reason of special relations existing between the debtor and the beneficial owner or that both have with third parties, the amount of interest, taking into account the claim for which they are paid, exceeds that of which agreed between the debtor and the beneficial owner in the absence of such a relationship, the provisions of this article only apply to the latter amount. In this case, the excess part of the payments remains taxable according to the legislation of each Contracting State and taking into account the other provisions of this Convention.

Article 12 – FEES

1.Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2.However, royalties arising in a Contracting State may also be taxed in that State under the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax thus established may not exceed:

a) 3 percent of the gross amount of royalties paid for the use or concession of news use;
b) 5 percent of the gross amount of royalties paid for the use or the concession of the use of a copyright in a literary, artistic or scientific work (but not including royalties in respect of cinematographic films, or films or tapes used for radio or television broadcasts);
c) 10 percent of the amount of the royalties in all other cases.

3.The term “royalties” used in this article means remuneration of any kind paid for the use or the concession of the use of news, of a copyright in a literary, artistic or scientific work, including motion pictures, or films or tapes used for radio or television broadcasts, of a patent, a trademark, a design or a model, a plan, a secret formula or process, as well as for the use or concession of the use of industrial, commercial or scientific equipment and for information relating to experience acquired in the industrial, commercial or scientific field, including including remuneration for the provision of technical assistance.

4.The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the royalties, resident in a Contracting State, exercises in the other Contracting State from which the royalties originate, either an industrial or commercial activity by the intermediary of a permanent establishment located there, or an independent profession by means of a fixed base located there, and that the right or property generating the royalties is actually attached to it. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.

5.Royalties are considered to arise from a Contracting State when the debtor is a resident of that Contracting State. However, when the debtor of the royalties, whether or not he is a resident of a Contracting State, has in a Contracting State a permanent establishment, or a fixed base, for which the obligation giving rise to the payment of the royalties has been entered into and who bears the burden of these royalties, they are considered to come from the State where the permanent establishment, or the fixed base, is located.

6.When, by reason of special relations existing between the debtor and the beneficial owner or that both have with third parties, the amount of the royalties, taking into account the service for which they are paid, exceeds that of which agreed between the debtor and the beneficial owner in the absence of such a relationship, the provisions of this article only apply to the latter amount. In this case, the excess part of the payments remains taxable according to the legislation of each Contracting State and taking into account the other provisions of this Convention.

Article 13 – CAPITAL GAINS

1.Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2.Gains from the alienation of movable property which form part of the assets of a permanent establishment which an enterprise of one Contracting State has in the other Contracting State, or from movable property which belongs to a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, including such gains from the alienation of that permanent establishment (alone or with the whole enterprise) or of this fixed base, are taxable in that other State.

3.Gains from the alienation of ships or aircraft operated in international traffic, ships used for inland navigation or movable property assigned to the operation of such ships, aircraft or boats, are taxable only in the Contracting State where the place of effective management of the company is located.

4.Gains which a resident of a Contracting State derives from the alienation of shares or similar rights or interests, such as rights or interests in a partnership or trust (or trust), may be taxed in the country. ‘other Contracting State if, at any time during the 365 days preceding the alienation, such shares, rights or similar participations derive directly or indirectly more than 50 per cent of their value from immovable property, as defined in article 6, located in that other state.

5.Unless the provisions of paragraph 4 apply, gains derived by a resident of a Contracting State from the alienation of shares representing the capital of a company which is a resident of the other Contracting State may be taxed. in that other State, but the tax thus established may not exceed:

a) 10 per cent of the gain when the transferor has held at least 25 per cent of the capital;
b) 15 percent of the gain in all other cases.

6.Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3, 4 and 5 and situated in a Contracting State may be taxed only in the Contracting State of which the transferor is a resident.

Article 14 – INDEPENDENT PROFESSIONS

1.Income derived by a resident of a Contracting State from professional services or other activities of an independent character may be taxed only in that State; however, such income may also be taxed in the other Contracting State in the following cases:
a) if that resident usually has a fixed base in the other Contracting State for the pursuit of his activities; in this case, only the portion of the income which is attributable to the said fixed base may be taxed in the other Contracting State; Where
b) if his stay in the other Contracting State is for a period or periods of a total duration equal to or greater than 183 days beginning or ending during the fiscal year in question; in this case, only the fraction of the income which is derived from activities carried on in that other State may be taxed in that other State.

2.The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants. It does not include the technical assistance referred to in Article 12.

Article 15 – DEPENDENT PROFESSIONS

1.Subject to the provisions of Articles 16, 18 and 19, wages, salaries and other similar remuneration which a resident of a Contracting State receives in respect of paid employment shall be taxable only in that State, unless the 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 State.

2.Notwithstanding the provisions of paragraph 1, remuneration which a resident of a Contracting State receives in respect of paid employment exercised in the other Contracting State shall be taxable only in the former State if:

a) the beneficiary stays in the other State for a period or periods not exceeding in the aggregate 183 days during any twelve month period beginning or ending in the fiscal year concerned, and

b) the remuneration is paid by or on behalf of an employer who is not a resident of the other State, and
a) the remuneration charge is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3.Notwithstanding the preceding provisions of this article, remuneration received in respect of salaried employment carried out on board a ship or an aircraft operated in international traffic, or on board a vessel used for inland navigation, may be taxed. in the Contracting State where the place of effective management of the undertaking is situated.

Article 16 – TANTIMES

Directors’ fees, attendance fees and other similar remuneration which a resident of a Contracting State receives in his capacity as a member of the board of directors or supervisory board, or of a similar body, of a company which is a resident of the other Contracting State, may be taxed in that other State.

Article 17 – ARTISTS AND ATHLETES

1.Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State from his personal activities carried on in the other Contracting State as a performing artist, such as a theater or film artist , radio or television, or that a musician, or as an athlete, are taxable in that other State.

2.When the income from activities that an entertainer or an athlete exercises personally and in this capacity, are attributed not to the artist or to the athlete but to another person, this income is taxable, notwithstanding the provisions of articles 14 and 15, in the Contracting State where the activities of the artist or athlete are carried on.

3.Notwithstanding the provisions of paragraphs 1 and 2, income derived by a resident of a Contracting State from activities carried on in the other Contracting State shall be exempt from tax in that other State if the stay in that other State is fully supported. or substantially by funds of either Contracting State, one of their political subdivisions or local authorities, or takes place under a cultural agreement or arrangement between the Governments of the Contracting States.

Article 18 – PENSIONS

1.Subject to the provisions of paragraph 2 of article 19, pensions and other similar remuneration paid to a resident of a Contracting State in respect of previous employment shall be taxable only in that State
.
2.Notwithstanding the provisions of paragraph 1, pensions and other sums paid under the social security legislation of a Contracting State shall be taxable only in that State.

3.Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration (including lump sum payments) arising in a Contracting State and paid to a resident of the other Contracting State, shall be taxable only in the first Contracting State if such payments result from contributions, allowances or insurance premiums paid to a supplementary pension scheme by the beneficiary or on his behalf, or from allocations made by the employer to an internal scheme, and if these contributions, allowances, insurance premiums or endowments were actually subject to tax in the first Contracting State under the ordinary rules of its tax laws.

Article 19 – PUBLIC FUNCTIONS

1.
a) Salaries, wages and other similar remuneration paid by a Contracting State or one of its political subdivisions or local authorities to an individual in respect of services rendered to that State or to that subdivision or body may be taxed only in that State.

b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and if the natural person is a resident of that State who:
(i) has the nationality of that State, or
(ii) did not become a resident of that State for the sole purpose of rendering the services.

2.
a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by a Contracting State or one of its political subdivisions or local authorities, either directly or by deduction from funds which they have established, to a natural person, in respect of services rendered to that State or to that subdivision or community, are taxable only in that State.
b) However, such pensions and other similar remuneration shall be taxable only in the other Contracting State if the individual is a resident of that State and holds its nationality.

3.The provisions of Articles 15, 16, 17 and 18 apply to wages, salaries, pensions and other similar remuneration paid for services rendered in the course of an industrial or commercial activity exercised by a Contracting State or one of the of its political subdivisions or local communities.

Article 20 – STUDENTS

1.The sums that a student or trainee who is, or who was immediately before going to a Contracting State, a resident of the other Contracting State and who is staying in the first State solely for the purpose of continuing his studies there or his training, received to cover his maintenance, study or training costs are not taxable in that State, provided that they come from sources outside that State.

2.With regard to study allowances, scholarships and remuneration for salaried employment to which paragraph 1 does not apply, a student or trainee within the meaning of paragraph 1 will also have, during the period of his studies or of his training, the right to benefit from the same exemptions, reductions or tax reductions as the residents of the State in which he is staying.

Article 21 – OTHER INCOME

1.Items of income of a resident of a Contracting State, wherever they arise, which are not dealt with in the foregoing articles of this Convention, shall be taxable only in that State.

2.The provisions of paragraph 1 do not apply to income other than income from immovable property as defined in paragraph 2 of article 6, where the recipient of such income, resident of a Contracting State, exercises in the other Contracting State, either an industrial or commercial activity through a permanent establishment situated there, or an independent profession by means of a fixed base situated there, and the law or property income generator is actually attached to it. In this case, the provisions of article 7 or article 14, as the case may be, shall apply.

3.Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State which are not dealt with in the preceding articles of this Convention and which arise in the other Contracting State may also be taxed in that other. State.

TAXATION OF FORTUNE
Article 22 – FORTUNE

1.The fortune constituted by immovable property referred to in Article 6, owned by a resident of a Contracting State and which is situated in the other Contracting State, may be taxed in that other State.

2.Wealth consisting of movable property which forms part of the assets of a permanent establishment that an enterprise of one Contracting State has in the other Contracting State, or of movable property which belongs to a fixed base of which a resident of a Contracting State has in the other Contracting State for the exercise of an independent profession, is taxable in that other State.

3.The fortune constituted by ships and aircraft operated in international traffic, by ships used for inland navigation as well as by movable property assigned to the operation of these ships, aircraft or boats, is taxable only in the State contractor where the place of effective management of the company is located.

4.Capital constituted by shares of a company which is a resident of a Contracting State may be taxed in that State.
5.All other elements of the capital of a resident of a Contracting State are taxable only in that State.

METHODS TO ELIMINATE DOUBLE TAXATION
Article 23 – ELIMINATION OF DOUBLE TAXATION

1.When a resident of Argentina receives income or owns capital which is taxable in Luxembourg in accordance with the provisions of this Convention (except to the extent that those provisions allow taxation by Luxembourg only because the income is also a income received by a resident of Luxembourg or because the fortune is also fortune owned by a resident of Luxembourg), Argentina grants:

a) from the tax he collects on the income of this resident, a deduction of an amount equal to the income tax paid in Luxembourg;
b) from the tax he collects on the wealth of this resident, a deduction of an amount equal to the wealth tax paid in Luxembourg.

In either case, this deduction may not, however, exceed the fraction of the income tax or the wealth tax, calculated before deduction, corresponding as the case may be to the income or to the capital taxable in the Luxembourg.
Where, in accordance with any provision of this Convention, the income which a resident of Argentina receives or the fortune which he possesses are exempt from tax in Argentina, the latter may nevertheless, in order to calculate the amount of the tax on the remainder of the income or fortune of this resident, take into account the exempt income or fortune.

2. Subject to the provisions of Luxembourg law concerning the elimination of double taxation which do not affect the general principle, double taxation is eliminated as follows:

a) When a resident of Luxembourg receives income or has assets which, in accordance with the provisions of this Convention, are taxable in Argentina, Luxembourg shall exempt such income or assets from tax, subject to the provisions of sub-paragraphs b) and c), but may, in order to calculate the amount of tax on the remainder of the resident’s income or capital, apply the same tax rates as if the income or capital had not been exempted.
b) When a resident of Luxembourg receives items of income which, in accordance with the provisions of Articles 10, 11 and 12, paragraph 5 of Article 13, Article 17 and paragraph 3 of Article 21, are taxable in Argentina, Luxembourg grants a deduction from the personal income tax or the corporate income tax of this resident in an amount equal to the tax paid in Argentina. This deduction may not, however, exceed the fraction of the tax, calculated before deduction, corresponding to these items of income received from Argentina.
c) The provisions of subparagraph a) do not apply to income received or to the capital possessed by a resident of Luxembourg, where Argentina applies the provisions of this Convention to exempt such income or capital from tax or applies the provisions of paragraph 2 of article 10, 11 or 12 or of paragraph 5 of article 13 to such income.

SPECIAL PROVISIONS
Article 24 – NON-DISCRIMINATION

1.Nationals of a Contracting State shall not be subject in the other Contracting State to any taxation or obligation relating thereto which is other or more onerous than those to which nationals of that other Contracting State who are in the country are or may be subject. same situation, in particular with regard to the residence. This provision also applies, notwithstanding the provisions of Article 1, to persons who are not residents of a Contracting State or of both Contracting States.

2.The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State is not established in that other Contracting State in a less favorable manner than the taxation of enterprises of that other. State which carry out the same activity. This provision may not be interpreted as obliging a Contracting State to grant to residents of the other Contracting State the personal deductions, allowances and tax reductions according to the situation or the family responsibilities which it grants to its own residents. .

3.Unless the provisions of paragraph 1 of article 9, paragraph 7 of article 11 or paragraph 6 of article 12 apply, interest, royalties and other expenses paid by an enterprise of a State contracting to a resident of the other Contracting State are deductible, for the determination of the taxable profits of that enterprise, under the same conditions as if they had been paid to a resident of the first State. Likewise, the debts of an enterprise of a Contracting State towards a resident of the other Contracting State are deductible, for the determination of the taxable fortune of this enterprise, under the same conditions as if they had been contracted towards a resident. of the first state.

4.Enterprises of a Contracting State, the capital of which is wholly or in part, directly or indirectly, owned or controlled by one or more residents of the other Contracting State, shall not be subject in the first State to any taxation or obligation therein. relative, which is different or heavier than those to which the other similar enterprises of the first State are or may be subject.

5.The provisions of this article apply, notwithstanding the provisions of article 2, to taxes of any kind or denomination.

Article 25 – AMICABLE PROCEDURE

1.Where a person considers that the measures taken by a Contracting State or by both Contracting States result or will result for him or her in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, submit their case to the competent authority of either Contracting State. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2.The competent authority shall endeavor, if the complaint appears to it to be justified and if it is not itself able to find a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, for the avoidance of taxation which is not in accordance with the Convention. The agreement is applied notwithstanding the time limits provided for by the internal law of each of the Contracting States.

3.The competent authorities of the Contracting States shall endeavor, by mutual agreement, to resolve any difficulties or to dispel any doubts which may arise in the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4.The competent authorities of the Contracting States may communicate with each other directly, including within a joint commission composed of these authorities or their representatives, with a view to reaching an agreement as indicated in the preceding paragraphs.

Article 26 – EXCHANGE OF INFORMATION

1.The competent authorities of the Contracting States shall exchange information likely to be relevant for the application of the provisions of this Convention or for the administration or application of the domestic legislation relating to taxes of any kind or name levied on behalf of the Contracting States, of their political subdivisions or their local communities insofar as the taxation provided for is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2.

2.Information received under paragraph 1 by a Contracting State shall be kept secret in the same manner as information obtained under the domestic law of that State and shall only be communicated to persons or authorities (including courts and administrative bodies). ) concerned by the establishment or collection of the taxes referred to in paragraph 1, by proceedings or prosecutions relating to such taxes, or by decisions on appeals relating to these taxes, or by the control of the foregoing. These persons or authorities only use this information for these purposes. They may reveal this information in public court hearings or in judgments. Notwithstanding the above,

3.The provisions of paragraphs 1 and 2 may in no case be interpreted as imposing on a Contracting State the obligation:
a) to take administrative measures at variance with its laws and administrative practice or those of the other Contracting State;
b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
c) to provide information which would reveal a trade secret, industrial, professional or a trade process or information the communication of which would be contrary to public order.

4.If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use the powers at its disposal to obtain the information requested, even if it does not need it for its own tax purposes. The obligation in the preceding sentence is subject to the limitations provided for in paragraph 3 except where such limitations are likely to prevent a Contracting State from communicating information solely because it is of no interest to it within the framework of national.

5.Under no circumstances may the provisions of paragraph 3 be interpreted as allowing a Contracting State to refuse to disclose information solely because it is held by a bank, another financial institution, an agent or a person acting as a agent or trustee or because such information relates to a person’s property rights.

Article 27 – MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

The provisions of this Convention are without prejudice to the fiscal privileges enjoyed by members of diplomatic missions or consular posts by virtue either of the general rules of international law or of the provisions of special agreements.
Article 28 – RIGHT TO BENEFITS
Notwithstanding the other provisions of this Agreement, an advantage hereunder shall not be granted in respect of an item of income or capital if it is reasonable to conclude, taking into account all the facts and circumstances specific to the situation, that the granting of this advantage was one of the main objects of an arrangement or a transaction which made it possible, directly or indirectly, to obtain it, unless it is established that the granting of this advantage in these circumstances would be consistent with the object and purpose of the relevant provisions of this Convention.

FINAL PROVISIONS
Article 29 – ENTRY INTO FORCE

1.Each of the Contracting States shall notify the other, through the diplomatic channel, of the completion of the procedures required by its law for the entry into force of this Convention. The Convention will enter into force on the date of receipt of the last of these notifications.

2.The Convention will be applicable:

a) as regards taxes withheld at source, to amounts paid on or after January 1 of the calendar year immediately following the year in which the Convention enters into force;
b) as regards other taxes on income or on capital, to taxes due for any taxation year beginning on or after 1 January of the calendar year immediately following the year in which the Convention enters into force .

Article 30 – TERMINATION

1.This Convention shall remain in force until it has been denounced by a Contracting State. Each Contracting State may denounce the Convention through diplomatic channels with a minimum notice of six months before the end of each calendar year beginning after the expiration of a period of five years from the date of entry into force of the Convention.

2.In this case, the Convention will cease to be applicable:

a) with regard to taxes withheld at source, to amounts paid on or after January 1 of the calendar year immediately following the year in which notice is given;
b) with regard to other taxes on income or on capital, to taxes due for any taxation year beginning on or after January 1 of the calendar year immediately following the year in which notice is given.

IN WITNESS WHEREOF the undersigned, being duly authorized for this purpose, have signed this Convention.
Done in duplicate at Washington on April 13, 2019, in the English, French and Spanish languages, all texts being equally authentic. In the event of a difference in interpretation between the French and Spanish texts, the English text shall prevail.