CONVENTION
Between the Government of the Grand Duchy of Luxembourg and the Government of the Republic of Armenia for the avoidance of double taxation and the prevention of fiscal and to Prevent Fiscal Evasion with Respect to Taxes on Income and on Capital and exchange of letters relating thereto

 

The Government of the Grand Duchy of Luxembourg and the Government of the Republic of Armenia, desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on Income and Capital, 

have agreed as follows:

 

Article 1

Persons Covered

This Convention shall apply to persons who are residents of one or both of the Contracting States.

 

Article 2

Taxes Covered

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or its local authorities, irrespective of the system of taxation. State or its local authorities, irrespective of the system of collection.

2. There shall be regarded as taxes on income and on capital taxes imposed on total income, on total capital, or on elements of income or capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amount of salaries paid by enterprises, as well as taxes on capital gains.

3. The existing taxes to which the Convention applies include:

(a) in Armenia:

(i) the tax on profits;

(ii) income tax;

(iii) the property tax;

(hereinafter referred to as “Armenian tax”);

(b) in Luxembourg:

(i) the personal income tax;

(ii) the corporate income tax;

(iii) the wealth tax; and

(iv) the municipal business tax,

(hereinafter referred to as “Luxembourg tax”).

4. The Convention shall also apply to any identical or substantially similar taxes imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities The competent authorities of the Contracting States shall notify each other of any significant changes in their respective taxation laws.

 

Article 3

General Definitions

1. For the purposes of this Convention, unless the context otherwise requires

(a) the terms “a Contracting State” and “the other Contracting State” mean, as the context requires, Armenia or Luxembourg, as the context requires;

(b) the term “Armenia” means the Republic of Armenia and, when used in a geographical sense, means the territory, including the lands, waters, entrails of the earth and airspace, over which the Republic of Armenia exercises its rights Republic of Armenia exercises its sovereign rights and judicial authority in accordance with its laws and international law;

(c) “Luxembourg” means the Grand Duchy of Luxembourg and, when used in a geographical sense, means the territory of the Grand Duchy of Luxembourg;

(d) the term “person” includes natural persons, companies and any other bodies of persons

(e) “corporation” means any body corporate or any entity which is treated as a body corporate for tax purposes;

(f) the term “business” means the carrying on of any activity or business

(g) 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 a resident of the other Contracting State;

(h) the term “international traffic” means any transport by a ship, aircraft or road vehicle operated by an enterprise whose place of effective management is in a Contracting State, except where the ship, aircraft or road vehicle is operated solely between points in the other Contracting State

(i) the term “competent authority” means:

(i) in Armenia, the Minister of Finance and the Chairman of the State Revenue Committee or their authorized representatives;

(ii) in Luxembourg, the Minister of Finance or his authorized representative;

(j) the term “national” means:

(i) any individual who is a national of a Contracting State;

(ii) any legal person, partnership or association organized under the laws of a Contracting State;

(k) the terms “activity”, in relation to an enterprise, and “business” include the practice of professions or other activities of an independent character.

 

2. For the purposes of the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State concerning the taxes to which it relates. of that State in relation to the taxes to which the Convention applies, the meaning of such term or expression under the meaning given to that term under the tax law of that State shall prevail over the meaning given to it under other laws of that State.

 

Article 4

Resident

1. For the purposes of this Convention, the term “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, residence, place of registration, place of management or any other criterion of a similar natureand shall also apply to that State and to all the taxpayer is a resident of the United States of America and of the United States of America. However, this term does not include persons who are not However, the term shall not include any person who is subject to tax in that State in respect only of income from sources in that State or of capital situated therein.

 

2. Where, under the provisions of paragraph 1, an individual is a resident of both Contracting States its status shall be determined as follows

(a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which he has a permanent home available to him resident only of the State with which his personal and economic relations are closer (center of vital interests);

(b) if the State in which such person has his centre of vital interests cannot be determined, or if he has no permanent home in any of the States, he shall be deemed to be a resident only of the State in which he has an habitual abode;

(c) if such person has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;

(d) if such person is a national of both States or of neither, 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 Where, under the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, he shall be deemed to be a resident only of the State in which his place of effective management is situated.

 

Article 5

Permanent Establishment

1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

 

2. The term “permanent establishment” includes in particular:

(a) a place of management,

(b) a branch office

(c) an office,

(d) a factory,

(e) a workshop, and

(f) a mine, oil or gas well, quarry or other place of exploration or extraction of natural resources.

(a) A construction or assembly site, or supervisory activities carried on thereon, constitutes a permanent establishment, but only where such site or activities have a duration of more than 12 months.

(b) The furnishing of services, including consulting services, by an enterprise acting through employees or other personnel engaged by the enterprise for that purpose constitutes a permanent establishment, but only where such activities are carried on for a period of more than 12 months. only where activities of that nature are carried on (for the same or a connected project) in the territory of the country for a period or periods aggregating more than 3 months within any 12-month period

 

4. Notwithstanding the foregoing provisions of this Article, a “permanent establishment” shall be deemed not to exist if:

(a) use is made of facilities solely for the purpose of storing, displaying or delivering goods or merchandise belonging to the enterprise;

(b) goods belonging to the business are stored solely for the purpose of storage, display or delivery;

(c) goods owned by the business are stored solely for the purpose of processing by another business;

(d) a fixed place of business is used solely for the purpose of purchasing goods or gathering information for the enterprise;

(e) a fixed place of business is used solely for the purpose of carrying on any other activity of a preparatory or auxiliary character for the enterprise

(f) a fixed place of business shall be used solely for the purpose of carrying on the combined activities referred to in subparagraphs (a) to (e), provided that the overall activity of the fixed place of business resulting from such combination remains of a preparatory or auxiliary character.

 

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent with independent status to whom paragraph 6 applies – is to whom paragraph 6 applies – acts on behalf of an enterprise and has powers in a Contracting State which where a person – other than an agent of an independent status to whom paragraph 6 applies – is acting on behalf of an enterprise and has in a Contracting State an authority habitually exercised by that person to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that enterprise, unless the activities of such person are limited to those referred to in paragraph 4 which, if referred to in paragraph 4 and which, if exercised through a fixed place of business, would not permit that place of business to be regarded as a permanent establishment under the provisions of that paragraph.

 

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent provided that such persons are acting in the ordinary course of their business.

 

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is resident of the other Contracting State or carrying on business in that other State (whether through a permanent establishment or otherwise) is not The fact that 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 which carries on business in that other Contracting State (whether through a permanent establishment or otherwise) shall not of itself constitute a permanent establishment of the other company.

 

Article 6

Income from Real Property

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

 

2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property concerned is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry rights to which the provisions of private law concerning landed property, usufruct and succession apply. of real estate and rights to variable or fixed payments for the exploitation or concession of mineral deposits, springs and other natural resources; ships, boats, aircraft and road vehicles are not vehicles are not considered real property.

 

3. The provisions of paragraph 1 shall apply to income derived from the direct operation, rental or leasing, and any other form of exploitation of real property.

 

4. The provisions of paragraphs 1 and 3 shall also apply to income from the real estate of a company.

 

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 therein. If the enterprise carries on business in such a manner, the profits of the enterprise may be taxed in the other State, but only to the extent that they are 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 business in the the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent the profits which it might be expected to make if it were a separate enterprise engaged in the same or similar activities carrying on the same or similar activities under the same or similar conditions and dealing wholly independently with The taxpayer shall be deemed to have paid the tax on the profits which it would have realized if it had constituted a separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

 

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses incurred for the purposes permanent establishment, including executive and general administrative expenses so incurred, either in the State in which incurred either in the State in which such permanent establishment is situated or elsewhere. However, no deduction shall be allowed in respect of amounts, if any, paid (other than for reimbursement of expenses incurred) to the taxpayer for the purpose of (other than as reimbursement for expenses incurred) by the permanent establishment to the enterprise, as royalties, fees or other similar payments, for the use of patents or other rights, or as a commission for services rendered services rendered or for management activity or, except in the case of a banking enterprise, as interest on money lent to the permanent establishment. In the same way, in calculating the profits of a permanent establishment, no account shall be taken of amounts charged (other than reimbursement of expenses) to the permanent establishment. (other than reimbursement of expenses incurred) by the permanent establishment to the enterprise, as royalties, fees or other similar payments, for the enterprise’s own use, or other similar payments, for the use of patents or other rights, or as a fee for services rendered or for services rendered or for management activity or, except in the case of a banking enterprise, as interest on money lent to the enterprise.

 

4. If it is the practice of 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 to its various parts, nothing in paragraph 2 shall prevent that Contracting State from 2 shall not prevent that Contracting State from determining the taxable profits according to the customary apportionment; the method of apportionment adopted shall, however, be such as to produce a result consistent with the principles contained in this Article.

 

5. No profit shall be attributed to a permanent establishment by reason of its having merely purchased goods or merchandise for the enterprise.

 

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined annually the same method, unless there is good and sufficient reason to the contrary.

 

7. Where profits include items of income which are dealt with separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.

 

Article 8

Maritime and Inland Navigation, Road and Air Transport

1. Profits from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

 

2. Profits from the operation of inland waterway vessels shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

 

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

 

Article 9

Associated Enterprises

1. Where

(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the 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 of an enterprise of the other Contracting State, and in either case the two enterprises are, in their commercial or financial relations, bound by agreed or imposed conditions agreed or imposed conditions which differ from those which would be agreed upon between independent enterprises, profits which, but for those conditions, would have accrued to one of the undertakings but, because of those conditions, did not conditions, may be included in the profits of that enterprise 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 profits on which an enterprise of the other Contracting State has been taxed in that other State, and the profits so included are included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions agreed upon between the the two enterprises had been those which would have been agreed upon between independent enterprises, the other State shall make an appropriate adjustment to the amount of tax imposed therein on such profits where that other State considers the adjustment to be justified. In determining such adjustment, due regard shall be had to the other provisions of In determining such adjustment, due regard shall be had to 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 that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that State. may be taxed in that other State.

 

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is resident, and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed

(a) 5 percent of the gross amount of the dividends, if the beneficial owner is a company (other than a partnership) that owns directly at least 10 percent of the capital of the company paying the dividends;

(b) 15 per cent of the gross amount of the dividends, in all other cases.

The subsection does not affect the taxation of the corporation in respect of the profits used to pay the dividends.

 

3. The term “dividends” as used in this section means income from shares or other beneficial interests shares, with the exception of debt claims, as well as income from other shares which is subject to the same tax regime as income from shares the taxpayer shall be entitled to the same tax treatment as income from shares under the laws of the State of which the company making the distribution is a resident, and to the share of the profits by the lessor of the capital invested in a commercial, industrial, mining or artisanal enterprise, remunerated in the same way as the income from shares. remunerated in proportion to the profit, as well as arrears and interest on bonds when a right to a dividend is for these securities is granted a right to the attribution, in addition to the fixed interest, of an additional interest varying according to the amount of the distributed profit.

 

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State carries on business in the other Contracting State of which the company paying the dividends is a resident through business activity through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. dividends is effectively connected with it. In such case, the provisions of Article 7 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 State, that other State may not impose any tax on dividends paid by the company, except to the extent that such dividends are paid to a resident of the other State. paid to a resident of that other State or to the extent that the holding in respect of which the dividends are paid is effectively connected with a dividends is effectively connected with a permanent establishment situated in that other State, nor impose any tax, in respect of the company’s undistributed profits, even if the dividends paid or the undistributed paid or the undistributed profits consist wholly or partly of profits or income arising in 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

 

2. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the interest may be taxed in that State. However, such interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10 percent of the gross amount of the interest. exceed 10 percent of the gross amount of the interest.

 

3. Notwithstanding the provisions of paragraph 2, the interest referred to in paragraph 1 shall be taxable only in the Contracting State of which the person the Contracting State of which the recipient of the interest is a resident, if the beneficial owner of the interest is a resident of that State and:

(a) is that State or a local authority or public institution thereof,

(b) if the interest is paid by the State in which it is earned or by a local authority or public institution thereof,

(c) if the interest is paid pursuant to a loan, claim, or credit that is due to this state or made, granted, guaranteed, or insured by this state or any of its local governments or export financing agencies,

(d) if the interest is paid under any loan made by a bank.

 

4. The term “interest” as used in this section means income from debt obligations of any kind,  whether or not secured by mortgage or by a provision for participation in the debtor’s profits, and includes income from public funds and bonds, including premiums and prizes attached thereto. However, the term “interest” does not include income referred to in Article 10. Penalties for late payment shall not be considered interest for the purposes of this penalties for late payment shall not be considered as interest within the meaning of this article.

 

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in that State. of a Contracting State carries on business in the other Contracting State in which the interest arises through a permanent through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with effectively connected therewith. In such case, the provisions of Article 7 shall apply.

 

6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the interest is paid, the interest shall be deemed to arise in that State. a permanent establishment in a Contracting State in connection with which the indebtedness on which the interest is paid was incurred and which bears the expense of such interest, such interest shall be interest, such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

 

7. Where, by reason of a special relationship between the payer and the beneficial owner or between the payer and the beneficial owner and other persons, the amount of the interest, having regard to the debt-claim for which it is paid the debtor and the beneficial owner would have agreed in the absence of such relationship, the provisions of this article shall apply only to the latter amount. In such case, the excess part of the payments shall remain payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

 

Article 12

Royalties

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, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient of the royalties of that State, but if the person receiving the royalties is the beneficial owner thereof, the tax so charged shall not exceed 5 percent of the gross amount of the royalties. exceed 5 per cent of the gross amount of the royalties.

 

3. The term “royalties” as used in this Article means payments of any kind for the use of or the right to use the use of, or the right to use, any copyright in any literary, artistic or scientific work, including motion pictures or films or tapes for radio or television, a patent, a trademark, a design, a design patent or a design patent.design, plan, secret formula or process, and for information concerning experience gained in the information relating to industrial, commercial or scientific experience.

 

4. The provisions of paragraphs 1 and 2 shall not apply where the beneficial owner of the royalties, being a resident of a Contracting State carries on business in the other Contracting State in which the royalties arise through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. is effectively connected with it. In such case, the provisions of Article 7 shall apply.

 

5. Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. However, where the person paying the royalties, whether he is a resident of a  Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred and which incurred and which bears the expense of such royalties, such royalties shall be deemed to arise in the Contracting State in which the Contracting State in which the permanent establishment is situated.

 

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and third persons, the the amount of the royalties, having regard to the service for which they are paid, exceeds that for which the the amount of the royalties, taking into account the performance for which they are paid, exceeds the amount that would have been agreed upon by the obligor and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the latter amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

 

Article 13

Capital Gains

1. Gains derived by a resident of a Contracting State from the alienation of real 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 forming part of the business property of a permanent establishment which an enterprise of a Contracting State has enterprise of a Contracting State has in the other Contracting State, including such gains from the alienation of that permanent establishment permanent establishment (alone or with the whole enterprise) may be taxed in that other State.

 

3. Gains from the alienation of ships, aircraft or road vehicles operated in international traffic, inland waterway vessels or

the taxpayer shall be entitled to tax the profits of the business in that other State; or vehicles or ships, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

 

4. Gains derived by a resident of a Contracting State from the alienation of shares or other securities of a company assets of which consist principally of real property situated in the other Contracting State may be taxed in that other State.

 

5. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, 3 and 

4 shall be taxable only in the Contracting State in which the alienation occurs. shall be taxable only in the Contracting State of which the transferor is a resident.

 

Article 14

Income from Employment

1. Subject to the provisions of Articles 15, 17 and 18, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised in the other Contracting State, the remuneration received in respect thereof may be taxed in that other State. shall be taxable in that other State.

 

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if

 

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the calendar 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

(c) the remuneration is not borne by a permanent establishment that the employer has in the other State.

 

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, aircraft or road vehicle operated in international traffic, or aboard a vessel inland navigation, may be taxed in the Contracting State in which the place of effective management of the enterprise is situated.

 

Article 15

Directors’ Fees

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

 

Article 16

Artists and sportsmen

1. a) Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State from his personal activities as an entertainer, such as a theater, motion picture, radio or television artiste, or

(b) income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as an athlete, may be taxed in that other State.

 

2. Where income from activities which an entertainer or sportsperson performs personally and in that capacity is attributed not to the entertainer or athlete himself but to another person, such income may, notwithstanding the provisions of Articles 7 and 14, be taxed in that other State.

notwithstanding the provisions of Articles 7 and 14, such income may be taxed in the Contracting State in which the activities of the entertainer or athlete are exercised.

 

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived by a resident of a Contracting State from his activities as an entertainer or athlete shall be taxable only in that State if the activities were activities were performed in the other Contracting State in the context of a cultural or sporting exchange program approved by both approved by both Contracting States.

 

Article 17

Pensions

1. Subject to the provisions of paragraph 2 of Article 18, pensions and other similar remuneration paid to a resident of a Contracting State in respect of past employment shall be taxable only in that State.

 

2. Notwithstanding the provisions of paragraph 1, pensions and other amounts paid under the social security laws of a Contracting State shall be taxable only in that State. 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 not be taxable in the other taxable in the other Contracting State, if such payments are derived from contributions, allowances or insurance premiums contributions, allowances or insurance premiums paid to a supplementary pension plan by or on behalf of the recipient, or contributions made by the contributions, allowances, insurance premiums or endowments made by the employer to a domestic plan, and if such contributions, allowances, insurance premiums or endowments have actually been the first-mentioned Contracting State.

 

Article 18

Public Offices

 

1.

(a) Salaries, wages, and other similar remuneration paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable 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 the individual is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

2.

(a) Notwithstanding the provisions of paragraph 1, pensions and other similar remuneration paid by a Contracting State or a local authority thereof, either directly or out of funds constituted by them, to an individual to an individual in respect of services rendered to that State or local authority shall be 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 is a national of that State.

 

3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions, and other similar remuneration paid in respect of services rendered in the Contracting State remuneration paid in respect of services rendered in connection with a business carried on by a Contracting State or a State or a local authority thereof.

 

Article 19

Students

Amounts paid to a student or a trainee who is, or was immediately before visiting a Contracting State, a resident of the State and who is present in the first-mentioned State solely for the purpose of furthering his education or training, shall be education or training, receives to defray the expenses of his maintenance, education or training shall not be taxable in that State, provided that such income is derived from sources outside that State.

 

Article 20

Professors and Researchers

1. An individual who goes to a Contracting State to teach or engage in research at university, college, school or other recognized educational institution in that State and who immediately before such departure is or was a resident of the other Contracting State, shall be exempt from tax in the first-mentioned the first-mentioned Contracting State on remuneration derived from such teaching or research for a period not exceeding period not exceeding two years from the date of his first arrival for such purpose, provided that such remuneration from sources outside that State.

 

2. The provisions of paragraph 1 of this Article shall not apply to remuneration received for research, if such research is undertaken not in the public interest but primarily for the private benefit of a particular person or persons.

 

Article 21

Other Income

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State the preceding Articles of this Convention shall be taxable only in that State.

 

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein and situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case, the provisions of In such case, the provisions of Article 7 shall apply.

 

Article 22

Assets

1. Capital represented by immovable property referred to in Article 6 owned by a resident of a Contracting State and situated in the other Contracting State may be taxed in that other State.

 

2. Capital represented by movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State of a Contracting State has in the other Contracting State may be taxed in that other State.

 

3. Capital represented by ships, aircraft and road vehicles operated in international traffic, by inland navigation vessels and by movable property used in the operation of such ships, aircraft, road vehicles or movable property may be taxed in that other State, vehicles or ships, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

 

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

 

Article 23

Elimination of Double Taxation

1. In Armenia, double taxation shall be avoided in the following manner:

 

(a) Where a resident of Armenia derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Luxembourg, Armenia shall allow:

(i) from the tax it levies on the income of such resident, a deduction equal to the income tax paid in Luxembourg

(ii) from the tax it levies on the capital of such resident, a deduction equal to the tax on capital paid in Luxembourg. In either case, however, such deduction may not exceed the fraction of the income tax or the wealth tax paid in Luxembourg. calculated before deduction, corresponding to the income or wealth taxable in Luxembourg, as the case may be. taxable in Luxembourg.

(b) Where, in accordance with any provision of this Convention, income derived or capital owned by a resident of Armenia is exempt from tax in Armenia, Armenia may nevertheless, in calculating the amount of tax on the remaining income or capital of that resident, take into account the exempted income or

 

2. In Luxembourg, subject to the provisions of Luxembourg law concerning the elimination of double taxation which do not affect the general principle thereof, double taxation shall be eliminated in the following manner:

 

(a) Where a resident of Luxembourg receives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Armenia the amount of tax on the remaining income or capital of the resident, apply the same rates of tax as if the income or capital had not been exempted.

(b) Where a resident of Luxembourg receives items of income which, in accordance with the provisions of Articles 10, 11, 12 and 16, may be taxed in Armenia, Luxembourg shall accord to the individual or corporate income tax of such resident, a deduction in an amount equal to the tax paid in equal to the tax paid in Armenia. This deduction may not, however, exceed the fraction of the tax, calculated before deduction, corresponding to such items of income received from Armenia.

(c) The provisions of subparagraph (a) shall not apply to income received or capital owned by a

resident of Luxembourg, where Armenia applies the provisions of this Convention to exempt such income or capital from to exempt such income or capital from tax or shall apply the provisions of paragraph 2 of Articles 10, 11 or 12 to such income.

 

Article 24

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 those to which nationals of that State are or may be subjected. or more burdensome than those to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall apply to any person who is not a national of a Contracting State and is not a national of a Contracting State. This provision shall apply notwithstanding the provisions of Article 1, to persons who are not residents of one or both of the Contracting States.

 

2. Stateless persons who are residents of a Contracting State shall not be subject in either Contracting State to to any taxation or any requirement connected therewith that is other or more burdensome than those to which nationals of the nationals of the State concerned who are in the same situation, in particular with regard to residence.

 

3. The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably than the taxation of enterprises of that other State carrying on the same activity. carrying on the same activity. This provision shall not be construed to require a Contracting State to grant to residents of the other Contracting State personal allowances, reliefs and reductions of tax on the basis of the This provision shall not be construed to require a Contracting State to grant to residents of the other Contracting State the personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own residents.

 

4.  Unless the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 6 of Article 12 are applicable paragraph 6 of Article 12 shall apply, interest, royalties and other expenses paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of that enterprise under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, the debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the same conditions as if they had been contracted with a resident of the first-mentioned State, for the determination of the taxable capital of that contracted with a resident of the first-mentioned State.

 

5. Enterprises of a Contracting State, the capital of which is wholly or partly, directly or indirectly

owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subject in the first-mentioned State to any tax or duty thereon which other or more burdensome than those to which other similar enterprises of the first-mentioned State are or may be other similar enterprises of the first-mentioned State.

 

6. The provisions of this Article shall apply to taxes covered by this Convention.

 

Article 25

Mutual Agreement Procedure

1. Where a person considers that the actions of one or both of the Contracting States result or will result 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 his case to the competent authority of the Contracting State of which it is a resident or, if its case comes under paragraph 1 of Article 24, to that of the Contracting State of which it is a national. State of which it is a national. The case must be submitted within three years from the first notification of the measure that results in taxation not in accordance with the provisions of the Convention.

 

2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the matter. to resolve the case by mutual agreement with the competent authority of the other Contracting State with a view to Contracting State, with a view to the avoidance of taxation not in accordance with the Convention. The agreement shall be applied irrespective of the time limits provided by the domestic law of the Contracting States.

 

3. The competent authorities of the Contracting States shall endeavor by mutual agreement to resolve any difficulties or doubts or to resolve any doubts as to the interpretation or application of the Convention. They may also 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 directly with each other, including in a joint committee composed of such authorities or their representatives, with a view to reaching an agreement as set forth in the preceding paragraphs.

 

Article 26

Exchange of Information

1. The competent authorities of the Contracting States shall exchange such information as is foreseeably relevant to the provisions of this Convention or for the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the taxes of every kind and description imposed on behalf of the Contracting States or their local authorities to the local authorities insofar as the taxation thereunder 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 treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of the assessment or collection of the taxes referred to in paragraph 1, in proceedings or prosecutions in respect of such taxes, in the assessment or collection of the taxes referred to in paragraph 1, the determination of appeals in relation to such taxes, or the oversight of any of the foregoing. Such persons or authorities shall use such information only for such purposes. They may disclose such information in public court hearings or in judgments.

 

3. In no case shall the provisions of paragraphs 1 and 2 be construed to require a Contracting State to the obligation

(a) to take administrative action at variance with the laws and administrative practice of that or of the other Contracting State

(b) to supply information that is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State

(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

 

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

 

5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to refuse to supply information upon request solely because the information is held by a bank, other financial institution, or other entity. by a bank, other financial institution, nominee or person acting in an agency or fiduciary capacity or because the information relates to the property rights of a person.

 

Article 27

Members of Diplomatic Missions and Consular Posts

The provisions of this Convention shall not affect the fiscal privileges of members of diplomatic missions or consular posts members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

 

Article 28

Entry into force

1. Each of the Contracting States shall notify the other in writing through diplomatic channels of the completion of the procedures required by its law for the entry into force of this Convention.procedures required by its legislation for the entry into force of this Convention.

 

2. This Convention shall enter into force on the date of the later of these notifications and its provisions shall be applicable:

 

(a) in Armenia:

(i) in respect of taxes withheld at source – on or after the first day of January in the calendar year immediately following the year in which the Convention enters into force

(ii) in respect of other taxes on income and on capital – to the taxes due for any taxable year beginning on or after the first day of January in the calendar year immediately following the year in which the Convention enters into force

 

(b) in Luxembourg:

(i) in respect of taxes withheld at source – on or after January 1 of the calendar year immediately following the year in which the Convention enters into force

(ii) in respect of other taxes on income and on capital – to the taxes due for any taxable year beginning on or after the first day of January in the calendar year immediately following the year in which the Convention enters into force

 

Article 29

Denunciation

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

 

2. The Convention shall cease to have effect

(a) with respect to taxes withheld at source, to income allocated on or after January 1 of the calendar year immediately following the year in which notice is given

(b) in respect of other income and capital taxes, to the taxes payable for any taxation year beginning on or after January 1 of the calendar year immediately following the year in which the notice is given. 

 

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have executed this Agreement. 

 

DONE at Luxembourg, on June 23, 2009, in two originals, in the French, Armenian and English languages, all versions being equally authentic.