AGREEMENT

between the Grand Duchy of Luxembourg and the Principality of Liechtenstein for the

Avoidance of double taxation and prevention of fiscal evasion in the field of taxes

on income and on capital

 

The Government of the Grand Duchy of Luxembourg and the Government of the Principality of Liechtenstein,

have agreed as follows:

Article 1

Persons covered by the Agreement

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

 

Article 2

Taxes covered by the Convention

1 This Convention shall apply, without regard to the manner of collection, to taxes on the taxes on income and on capital levied on behalf of a Contracting State or its local authorities.

(2) Taxes on income and wealth shall be deemed to be all taxes levied on the total income, wealth or capital of a Contracting State. total income, total wealth, or any part of the income or wealth, including taxes on the property, including taxes on the profits from the sale of goods or services the sale of movable or immovable property, payroll taxes and capital gains taxes.

3 The existing taxes to which the Agreement applies include in particular

(a) in the Grand Duchy of Luxembourg:

(i) the personal income tax,

(ii) the corporate income tax,

(iii) the wealth tax, and

(iv) the business tax;

(hereinafter referred to as the “Luxembourg Tax”);

(b) in the Principality of Liechtenstein:

(i) the Acquisitions Tax,

(ii) the income tax,

(iii) the company taxes,

(iv) the real estate gains tax,

(v) the wealth tax, and

(vi) the coupon tax;

(hereinafter referred to as “Liechtenstein tax”).

(4) The Agreement shall also apply to all taxes of the same or substantially similar nature, taxes of the same or substantially similar nature that are imposed after the signing of the Agreement in addition to or in lieu thereof. The competent authorities of the Contracting States shall notify each other of any significant changes which have occurred in their tax laws.

 

Article 3

General definitions

1. for the purposes of this Agreement, unless the context otherwise requires,
2. a) the term “Luxembourg” shall mean the Grand Duchy of Luxembourg and, when used in the geographical sense, the territory of the Grand Duchy of Luxembourg; 

(b) the term “Liechtenstein” means the Principality of Liechtenstein and, when used in the geographical sense, the territory of the Principality of Liechtenstein;

(c) the term “person” shall include natural persons, companies and any other associations of persons;

1. d) the term “company” shall mean legal persons or legal entities which are treated for taxation purposes as legal persons;

1. e) the expression “enterprise” means the carrying on of a business activity;

1. f) the terms “enterprise of one Contracting State” and “enterprise of the other Contracting State”, as the case may be, means an enterprise carried on by a resident of a Contracting State or an enterprise carried on by a resident of the other Contracting State.

(g) the term “international carriage” means any carriage by any vessel, aircraft or road vehicle operated by an enterprise which has its effective management in a Contracting State, unless,  the sea-going vessel, aircraft or road vehicle is operated exclusively between places in the other Contracting State;

(h) the term “competent authority” means.

(i) in Luxembourg, the Minister of Finance or his delegate;

(ii) in Liechtenstein, the Government or its delegate;

(i) the term “national” means.

(i) any natural person who is a national of a Contracting State; and

(ii) any legal person, partnership, or other association of persons association of persons established under the law in force in a Contracting State; and in force in a Contracting State;

(j) the term “business activity” shall also include the exercise of a professional or other or other self-employed activity.

2. in the application of the Agreement by a Contracting State, unless the context otherwise requires, any term not defined in the Agreement shall, at all times term shall, at all times, have the meaning given to it under the law of that State for taxation purposes of that State in relation to the taxes to which the Agreement applies, the meaning of which shall be determined by meaning under the applicable tax law of such State shall take precedence over any meaning given to the term under any other law of that State.

Article 4

Resident

(1) For the purposes of this Agreement, the term “a resident of a Contracting State” means a person who is a State” means a person who, under the law of that State, is a resident of that State by reason of his domicile, permanent residence, place of management or other similar characteristic. other similar characteristic, and shall also include that State and its territorial corporations. However, the term shall not include a person who is taxable in this state only with respect to income derived from sources in this state or with respect to property located in that State.

(2) Where, under paragraph (1), an individual is a resident of both Contracting States, the following shall apply:

(a) the individual shall be deemed to be a resident only of the State in which he has a permanent domicile; if he has a permanent domicile in both States, he/she shall be deemed to be a resident of the State with which he/she has the closer personal and economic ties (centre of economic relations (center of vital interests);

(b) it cannot be determined in which State the person has the center of his or her interests or does not have a permanent home in any of the States, he or she shall be deemed to be a domicile, he shall be deemed to be a resident only of the State in which he has his habitual residence;

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

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

3. if, in accordance with paragraph 1 of this article, a person other than a natural person is a resident of both Contracting States States, he shall be deemed to be a resident only of the State in which he has 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 individual is carried on. through which the business of an enterprise is wholly or partly carried on. or part of the business of an enterprise.

2 The term “permanent establishment” includes in particular:

(a) a place of management,

1. b) a branch office
2. c) a place of business
3. d) a manufacturing plant
4. e) a workshop, and

(f) a mine, oil or gas deposit, quarry, or other site of exploitation of mineral resources.

(3) A construction or assembly operation is an operating site only if its duration exceeds exceeds twelve months.

(4) Notwithstanding the foregoing provisions of this article, the following shall not be deemed to be Establishments:

(a) facilities used exclusively for the storage, display or delivery of the company’s goods or merchandise of the enterprise;

1. b) stocks of goods or merchandise of the enterprise maintained exclusively for the purpose of storage, display or delivery;

(c) stocks of goods or merchandise of the enterprise maintained solely for the purpose of being maintained for the sole purpose of being handled or processed by another company; or processed;

(d) a fixed place of business maintained solely for the purpose of, goods or merchandise for the enterprise or to procure information; or information;

1. e) a fixed place of business maintained for the sole purpose of, other activities for the enterprise which are of a preparatory or auxiliary nature; or

(f) a fixed place of business maintained for the sole purpose of carrying on more than one of the activities referred to in subparagraphs (a) to (e), provided that the resulting overall activity of the fixed place of business is of a preparatory nature business establishment is of a preparatory nature or is an ancillary activity.

(5) If a person, other than an independent representative as defined in para. 6 – works for an enterprise and has authority in a Contracting State to carry on business in the  and habitually exercises the authority in that State, the enterprise shall be deemed to be in the enterprise shall, notwithstanding the provisions of paragraphs 1 and 2, be treated as if it had treated as having a place of business in that State for all the activities carried on by the person for the activities carried on by the person on behalf of the enterprise, unless those activities are limited to the activities referred to in paragraph 4 which, if carried on through a fixed place of business, that place of business establishment, such establishment would not be a permanent establishment under the said paragraph.

(6) An enterprise shall not be treated as having a permanent establishment in a Contracting State merely because it has a fixed Contracting State merely because it carries on business there through a broker, agent or other independent representative, agent or other independent representative, provided that such persons are acting in the ordinary course of their persons act in the ordinary course of their business.

(7) The mere fact that a company which is a resident of a Contracting State controls or is controlled by a company in a Contracting State shall not constitute a permanent establishment in that Contracting State. company controls or is controlled by a company which is a resident of the other Contracting State or carries on business there (whether through a permanent establishment or otherwise) shall be deemed to be the or otherwise), neither of the two companies shall become the permanent establishment of the other.

Article 6

Income from immovable property

1. income derived by a resident of a Contracting State from immovable income from immovable property (including income from agricultural and forestry holdings) situated in the other Contracting State may be taxed in the other State.

(2) The term “immovable property” shall have the meaning given to it under the law of the Contracting State in which it is used. Of the Contracting State in which the immovable property is situated. in any case, the accessories to the immovable property, the living and dead inventory of agricultural and forestry holdings, the rights to which the provisions of private law on land private law, rights of use of immovable property, and rights to variable or fixed as well as rights to variable or fixed remuneration for the exploitation or the right to exploit mineral deposits, springs and other mineral resources; Ships and aircraft shall not be considered as immovable property.

(3) Paragraph (1) shall apply to income from the direct use, rental or leasing, and any other kind of use of immovable property.

(4) Paragraphs (1) and (3) shall also apply to income from immovable property of an enterprise.

 

Article 7

Company profits

1 Profits of an enterprise of a Contracting State shall be taxable only in that State, unless the enterprise carries on its business in the other Contracting State through a other Contracting State through a permanent establishment situated therein. If the company carries on business in this manner, the profits of the enterprise may be taxed in the other Contracting State, but only to the extent that they are attributable to that permanent establishment. to the extent that they can be attributed to this permanent establishment.

(2) Where an enterprise of a Contracting State carries on business in the other Contracting other Contracting State through a permanent establishment situated therein, then, subject to the provisions of paragraph 3 of paragraph 3, in each Contracting State there shall be attributed to such permanent establishment the profits which it would have been able to obtain if it had carried on the same or a similar activity under the same or similar under the same or similar conditions as an independent enterprise and in trade or commerce with the and had been wholly independent in its dealings with the enterprise of which it is a permanent establishment.

(3) In determining the profits of a permanent establishment, the expenses incurred for that permanent establishment, including the including management and general administrative expenses, shall be allowed as a deduction. and general administrative expenses, whether they are incurred in the State in which the permanent establishment is located or

(4) To the extent that it is the practice of a Contracting State to allocate the profits attributable to a permanent establishment profits attributable to a permanent establishment by apportioning the total profits of the enterprise to its profits of the enterprise by apportioning the total profits of the enterprise among its component parts, nothing in paragraph 2 shall preclude the taxable profits in accordance with the usual method of apportionment; however, the method of however, be such that the result is consistent with the principles of this article.

5. no profit shall be attributed to a permanent establishment on the basis of the mere purchase of goods or merchandise for the enterprise.

(6) For the purposes of applying the preceding paragraphs, the profits to be attributed to a permanent establishment to the permanent establishment shall be determined in the same manner each year, unless there are sufficient reasons for doing otherwise.

(7) If the profits include income treated in other articles of this Convention, the provisions of those articles shall be applied. other articles of this Convention, the provisions of those articles shall not be affected by the provisions of this article. shall not be affected by the provisions of this Article.

 

Article 8

Maritime navigation, inland navigation and air navigation

1 Profits derived from the operation of sea-going vessels or aircraft in international traffic international traffic shall be taxable only in the Contracting State in which the place of the effective of the enterprise is situated.

2. profits from the operation of vessels used for inland waterway transport may be taxed only in the Contracting only in the Contracting State in which the place of effective management of the enterprise is situated.

(3) When the place of effective management of an enterprise engaged in maritime or inland navigation is on board a ship, it shall be deemed to be situated in the Contracting State in which the home port of the ship is situated. in which the home port of the ship is situated, or, if there is no home port, in the State in the Contracting State of which the person who operates the ship is a resident. operates the ship.

(4) The provisions of paragraph (1) shall also apply to profits derived from participation in a pool, an operating pool or an international operating agency.

Article 9

Associated enterprises

1. If
2. 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, in such cases, the commercial or financial relations of the two enterprises are financial relations are bound by agreed or imposed conditions, differ from those which would be agreed upon between independent enterprises, the profits which one of the enterprises would have made in the absence of such conditions shall not be but did not make because of those conditions, may be included in the profits of that company and taxed accordingly.

(2) Where, in a Contracting State, profits of an enterprise of that State are attributed to and taxed accordingly, to the profits of an enterprise of that State on which an enterprise of the other Contracting State has been taxed in that State, and The profits attributed are those which the enterprise of the first-mentioned State would have earned if the conditions agreed between the two enterprises had been the same. had been the same as would have been agreed between independent enterprises, the other state shall make a corresponding change in the tax levied thereon. tax levied on such profits. In making such modification, the other provisions of this Agreement shall be taken into account; if necessary, the competent authorities of the Contracting States shall consult each other.

Article 10

Dividends

(1) Dividends paid by a resident of a Contracting State to a resident of the other Contracting State may be taxed in the other State. 

2 Such dividends may, however, also be taxed in the Contracting State of which the company paying the dividends is a resident of, shall be taxed in accordance with the law of that State; provided, however, that if the beneficial owner of the dividends is a resident of the other Contracting State, the tax shall not be other Contracting State, the tax shall not exceed:

(a) 0 per cent of the gross amount of the dividends, if the beneficial owner is a company (but not a partnership) that is a resident of the other Contracting State at the time of the  receives the dividends, during an uninterrupted period of at least of at least 12 months, has a direct participation of at least 10 of hundred or of an acquisition price of at least €1,200,000 in the of the company paying the dividends;

1. b) 5 percent of the gross amount of the dividends, if the beneficial owner is a company (but not a partnership) that directly holds at least 10 percent or more of the capital of the company paying the dividends and the dividends are not fall under subparagraph (a);

(c) 15 percent of the gross amount of the dividends in all other cases.

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

3. the term “dividends” as used in this article means income from shares, profit participation shares or profit participation certificates, coxes, founder’s shares or other rights – other than claims – with participation in profits, as well as income derived from other income derived from other shares in a company, which, under the law of the country in which the distributing company is resident, is treated for tax purposes as income from shares, and income from shares in profits which the lender participating in the business success the lender receives on account of its contribution to a commercial enterprise, as well as interest on bonds. as well as interest from bonds, if in addition to the fixed interest rate, an additional interest, which depends on the amount of profit distributions, is granted for these securities are granted.

(4) The provisions of paragraphs (1) and (2) of this article shall not apply if the resident of a Contracting State is the State in which the company paying the dividends is resident carries on business in the other of the other Contracting State in which the company paying the dividends is a resident, carries on a business and the participation in respect of which the dividends are paid actually belongs to that permanent establishment. belongs to that permanent establishment. In this case, Article 7 shall apply.

(5) Where a company which is a resident of a Contracting State derives profits or income from the other other Contracting State, that other State shall not tax the dividends paid by the company, nor shall it dividends paid by the company, except where such dividends are paid to a resident of the other State or that the interest in respect of which the dividends are paid actually belongs to a resident of the other State. paid is actually part of a permanent establishment located in the other state, nor subject profits of the corporation to a tax on undistributed earnings even if the dividends paid or the undistributed profits are derived in whole or in part profits consist, in whole or in part, of profits or income earned in the other state. Consist.

 

Article 11

Interest

(1) Interest arising in a Contracting State and of which a beneficial owner is a resident of the other Contracting State of the other Contracting State shall be taxable only in the other State.

2. the term “interest” as used in this article means income from receivables of any kind, even if the receivables are secured by liens on secured by liens on immovable property or which carry a participation in the debtor’s and, in particular, income from public bonds and from bonds, including the bonds, including the related premiums and the profits on lot bonds. However, the term “interest” shall not include income as defined in Article 10. Surcharges for late payment shall not be deemed to be interest within the meaning of this Article.

3 The provisions of paragraph 1 of this article shall not apply if the resident of a Contracting State is a interest in the other Contracting State from which the interest originates carries on a business activity through a permanent establishment situated therein and the debt claim,

and the debt-claim in respect of which the interest is paid is effectively connected with that permanent establishment. In this case, Article 7 shall apply.

(4) If there are special relations between the debtor and the beneficial owner, or between each of them and a third party, and therefore the interest exceeds the amount of interest, measured in relation to the underlying claim, exceeds the amount which the debtor and the beneficial the debtor and the beneficial owner would have agreed upon in the absence of such relations, this Article shall apply only to the latter amount. In this case, the excess amount may be taxed in accordance with the law of any Contracting State, having regard to the other provisions of this Convention.

Article 12

Royalties

1. royalties arising in a Contracting State and of which the beneficial owner of which is a resident of the other Contracting State, may be taxed only in the other taxable in the other State.

2 The term “royalties” as used in this Article means remuneration of of any kind paid for the use of, or for the right to use, copyright literary, artistic, or scientific works, including cinematographic films, from cinematographic films, of patents, trademarks, designs or models, plans, secret formulas or processes, or for the communication of industrial, commercial or scientific experience, commercial or scientific experience.

(3) The provisions of paragraph 1 shall not apply if the resident of a Contracting State beneficial owner in the other Contracting State from which the royalties are derived carries on business through a permanent establishment situated therein, and the rights assets in respect of which the royalties are paid actually belong to that permanent establishment. belong to that permanent establishment. In this case, Article 7 shall apply.

(4) If there are special relations between the debtor and the beneficial owner, or between or between each of them and a third party, and therefore the royalties exceed the amount of the the royalties, measured in relation to the underlying performance, exceed the amount which the debtor and the beneficial owner would have agreed upon in the absence of such relations, this article this Article shall apply only to the latter amount. In this case, may be taxed according to the law of each Contracting State, taking into account the other provisions of this Agreement.

 

Article 13

Gains from the alienation of property

1. profits derived by a resident of a Contracting State from the alienation  of immovable property, within the meaning of Article 6, situated in the other Contracting State may be taxed in the other State.

(2) Gains from the alienation of movable property which is the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, including such profits State, including any such gain realized on the disposal of such permanent establishment (alone or with the rest of the enterprise) may be taxed in the other State. taxation in the other State.

3. gains from the alienation of sea-going vessels or aircraft engaged in international traffic, ships used for inland navigation, and movable property. and movable property used in the operation of such vessels or aircraft, may be aircraft, may be taxed only in the Contracting State in which the place of the place of effective management of the enterprise is situated.

(4) Gains from the alienation of property not referred to in paragraphs (1), (2) and (3) of this article 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 from employment may be taxed only in that State may be taxed only in that State, unless the work is performed in the other Contracting State. If the work is performed in the other Contracting State, the remuneration may be taxed in the other Contracting State. 2.

(2) Notwithstanding the provisions of paragraph (1), remuneration received by a resident of a Contracting State in respect of employment carried on in the other Contracting State may be taxed only in the first may be taxed in the first-mentioned State only if

(a) the recipient does not reside in the other State for a total period of more than 183 days in any period of twelve months beginning or ending during the calendar year in question, and begins or ends, 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 place of business that the employer has in the other state.

(3) Notwithstanding the foregoing provisions of this article, compensation for dependent work performed on board a sea-going vessel, aircraft or  road vehicle operated in international traffic, or on board a vessel engaged in inland waterway inland waterways, may be taxed in the Contracting State in which the place of in which the place of effective management of the enterprise is situated.

Article 15

Remuneration of supervisory or administrative boards and similar payments received by a resident of a State in his capacity as a member of the supervisory board or board of directors of a company of a company which is a resident of the other Contracting State may be taxed in the other State.

Article 16

Artists and sportsmen

1 Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State as an artist, such as a stage performer, a film performer, a radio performer, a television performer musicians, or as a sportsman, from his personal activities in the other Contracting if income is received from an activity carried on personally in the other Contracting State, it shall be taxed in the other State.

(2) Where income from an activity personally pursued by an artist or sportsman in that capacity does not flow to the personally by an artist or sportsman in that capacity, but to another person, such income person, such income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the performer or sportsman carries on his activity.

Article 17

Pensions

1 Subject to the provisions of paragraph 2 of Article 18, pensions and similar remuneration, paid to a resident of a Contracting State in respect of former employed work may be taxable only in that State.

(2) Notwithstanding the provisions of paragraph (1) of this article, pensions and other payments made under the social security legislation of a Contracting State may be taxed in that State.

(3) Notwithstanding the provisions of paragraph (1), pensions and other similar payments (including lump-sum payments included) derived in one Contracting State and paid to a resident of the other Contracting State may be taxed only in the first-mentioned Contracting State if such payments arise from contributions, allocations and insurance premiums, allocations, and insurance premiums paid by or on behalf of the recipient to a supplementary pension scheme, or from endowments paid by the  Employer to an in-house regime, and such contributions, allocations, insurance premiums or endowments are taxed in the first Contracting State were taxed or allowed as a deduction for tax purposes.

 

Article 18

Public service

2. a) Salaries, wages and similar emoluments paid by a Contracting State or one of of its territorial authorities to an individual for  services rendered to that State or local authority may be taxed only in that State.

(b) However, such salaries, wages and similar remuneration may be taxed only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State.

(i) is a national of that State; or

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

3. a) Notwithstanding paragraph 1 of this article, pensions or similar allowances received from a Contracting State or a local authority thereof, or from a pension or similar allowance paid by that such State or local authority to an individual for the purposes of the work of to a natural person in respect of services rendered to that State or local authority. services rendered, shall be taxable only in that State.

(b) However, such pensions or similar remuneration may be taxed only in the other Contracting State if the individual is a resident of that State and is a national of that State.

(3) In respect of salaries, wages, pensions and similar remuneration for services performed, services rendered in connection with a business activity of a Contracting State or of one of its local authorities shall be subject to the provisions of Articles 14, 15, 16 or 17. shall apply.

Article 19

Teachers and students

(1) A natural person who, at the invitation of a Contracting State or of a university, higher education institution, school, museum or other cultural institution of that Contracting State or within the framework of an official cultural exchange in that Contracting State for a period of not more than three years solely for the purpose of teaching, giving lectures or carrying out research at that institution, and research activities and who is a resident of the other Contracting State or who was is a resident of the other Contracting State or was a resident of the other Contracting State immediately before entering the first-mentioned State, shall be exempt from taxation in the first-mentioned State in respect of the remuneration shall be exempt from tax.

2. payments received by a student, trainee or apprentice residing in a Contracting State and who is a resident of the other Contracting State or who is directly other Contracting State or was a resident of that State immediately prior to entering the first State, received for his maintenance, study or training,  shall not be taxed in the first-mentioned State, provided that such payments are derived from sources outside that State.

Article 20

Other income

1. Income of a resident of a Contracting State which has not been dealt with in the preceding Articles may be taxed only in that State, irrespective of its origin. in that State, irrespective of its source.

2. Paragraph 1 of this article shall not apply to income other than income from immovable property within the meaning of Article 6, paragraph 2, where the recipient, a resident of a Contracting State carries on business in the other Contracting State through a permanent establishment situated other Contracting State through a permanent establishment situated therein and the rights or assets in respect of which the income actually belong to that permanent establishment. In this case, Article 7 shall apply.

 

Article 21

Assets

1 Immovable property, as defined in Article 6, belonging to a resident of a Contracting States situated in the other Contracting State may be taxed in the other State. taxation in the other State.

2. movable property which is the business property of a permanent establishment which an States in the other Contracting State may be taxed in the other State. State may be taxed in the other State.

3. sea-going vessels and aircraft operated in international traffic, and vessels used for inland waterway transport, as well as movable property used for the ships or aircraft, may be taxed only in the Contracting State in which the taxation only in the Contracting State in which the place of effective management of the enterprise is situated.

(4) All other property of a resident of a Contracting State may be taxed only in that State.

 

Article 22

Avoidance of double taxation

1 Subject to the provisions of the Luxembourg legislation concerning the which do not prejudice this general principle, double taxation shall be as affect this general principle, double taxation shall be eliminated as follows:

(a) Where a resident of Luxembourg derives income or has property and such income or property may be taxed in Liechtenstein in accordance with the provisions of this Liechtenstein, Luxembourg shall, subject to the provisions of subparagraphs (b), (c) and (b), (c), and (d), Luxembourg shall exempt such income or property from the taxation, but may, in assessing the tax on the remaining income or property of the person, income or property of the person at the same rates as if the income or property were not the income or property were not exempt from taxation.

(b) If a Luxembourg resident receives income that is exempt from taxation under the provisions of Articles 7, 10, 13, paragraph 2, and 16, Luxembourg shall deduct from the income tax of that person Luxembourg shall deduct from the income tax of that individual or from the tax of that person the amount corresponding to the tax paid in Liechtenstein, but only in respect of tax paid in Liechtenstein but only, with reference to Articles 7 and 13(2), where the corporate profits and the profits from the disposal of property not agricultural, industrial, infrastructural or tourist activity originate from Liechtenstein. However, the amount to be credited may not exceed the portion of the tax determined before the tax determined before the credit is given, which is attributable to the income received from Liechtenstein.

1. c) If a Luxembourg resident company receives dividends which originate in Liechtenstein, Luxembourg shall exempt such dividends from taxation, provided that taxation, provided that the Luxembourg resident company has a direct participation of beginning of its fiscal year, holds a direct participation of at least 10 percent of the capital in the company paying the dividends and if this company is subject to income tax in Liechtenstein. company is subject to an income tax in Liechtenstein that is equal to the Luxembourg corporate income tax. The shares and units of the company are, under the same conditions, exempt from Luxembourg wealth tax. The tax exemption provided for in this paragraph tax exemption provided for in this paragraph shall also be applied if the company from Liechtenstein is exempt from taxation or is subject to a reduced tax rate in Liechtenstein. a reduced tax rate in Liechtenstein, and if the dividends derive from profits which are profits derived in connection with an agricultural, industrial, infrastructural or tourist activity, infrastructural and tourist activities in Liechtenstein.

(d) Paragraph (a) shall not apply to income or assets of a resident of Luxembourg person if Liechtenstein applies this Agreement in such a manner as to exempt such income such income or property from taxation or applies paragraph 2 of Article 10 to such income.

2. subject to the provisions of the legislation of Liechtenstein relating to the avoidance of double taxation, which do not affect this general principle, double taxation shall be affect this general principle, double taxation shall be eliminated as follows:

(a) Where a resident of Liechtenstein derives income or has property and such income or property may be taxed under this Agreement in Luxembourg, Liechtenstein shall, subject to subparagraph (b), exempt such income or property from Liechtenstein shall exempt such income or property from taxation, but may, in determining the may, however, apply the same rates of taxation to the remaining income or property of the person at the same rates as if the income or property were not exempt from taxation.

(b) Where a Liechtenstein resident receives income which may be taxed in Luxembourg in accordance with Articles 10 paragraph 2 and 16, Liechtenstein shall deduct from the income of that person shall deduct from the tax to be levied on the income of such person an amount equal to the tax tax paid in Luxembourg. However, the amount to be imputed shall not exceed or exceed that part of the tax determined before the credit is applied that is attributable to the income received from Luxembourg.

(c) dividends referred to in Article 10(2)(a) and (b) paid by a company resident in Luxembourg to a company resident in  Liechtenstein and which have not been deducted in determining the profits of the distributing company, shall, notwithstanding subparagraph (b), be exempt from taxation in Liechtenstein notwithstanding subparagraph (b).

 

Article 23

Equal treatment

1. nationals of a Contracting State shall not be subject in the other Contracting State to any subjected in the other Contracting State to any taxation or to any obligation connected therewith different from, or more burdensome than, the taxation and related obligations to which nationals of the other State are subject in like other States are or may be subject to in like circumstances, in particular with respect to residency. are or may be subject to. This provision shall apply, notwithstanding the provisions of Art. 1, shall also apply to persons who are not residents of any Contracting State.

2. Stateless persons who are residents of a Contracting State shall not be subject in any Contracting State to not be subjected in any Contracting State to any taxation or to any related State which is different from, or more burdensome than, the taxation and related  to which nationals of the State concerned are subject in like circumstances State are or may be subject to in like circumstances, in particular with respect to residency, are or may be subject to.

(3) The taxation of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourable in that other State than the taxation of enterprises of the other taxation of enterprises of the other State carrying on the same activity. Nothing in this provision shall be construed as requiring a Contracting State to tax the tax allowances, reliefs and reductions to residents of the other Contracting State. tax allowances, concessions and reductions on the basis of marital status or family burdens which it grants to its residents.

(4) Except as provided in paragraph 1 of Article 9, paragraph 4 of Article 11, or paragraph 4 of Article 12 interest, royalties and other fees paid by an enterprise of a Contracting State to a resident of a State to a resident of the other Contracting State shall be taken into account in determining the taxable profits of that the determination of the taxable profits of that enterprise under the same conditions as payments made of that enterprise under the same conditions as payments made to a resident of the first deduction. Accordingly, debts incurred by an enterprise of a State to a resident of the other Contracting State shall be deducted in determining the taxable assets of such enterprise under the same conditions as debts owed to a resident of the first the same conditions as debts owed to a resident of the first State.

5. enterprises of a Contracting State the capital of which is wholly or partly owned, directly or indirectly by a resident of the other Contracting State or by several such control in the other Contracting State shall not be subject to any taxation or relate State to any taxation or related obligation which is different from or more burdensome different from, or more burdensome than, the taxation and related obligations to which other similar corporations of the first-mentioned state are or may be subject to.

(6) This Article shall apply to taxes of every kind and description, notwithstanding the provisions of Article 2.

 

Article 24

Mutual agreement procedure

 

(1) If a person considers, that measures taken by a Contracting State or by both Contracting States result or will result for him in a taxation which is not in accordance with the provisions of this Agreement, he may he may, without prejudice to the remedies provided by the domestic law of those States the competent authority of the Contracting State in which he is a resident, or, if he is a resident of either of the Contracting State of which it is a resident or, if its case is covered by Article 23, paragraph 1, the competent authority of the Contracting State of which she is a national].

The case must be submitted within three years of the first notification of the measure which leads to taxation that does not comply with the agreement results.

(2) If the competent authority considers the objection to be well-founded and is not in a position to find a satisfactory solution satisfactory solution, it shall endeavour to resolve the case by mutual agreement with the competent the case by agreement with the competent authority of the other Contracting State in such a way as to in such a way that taxation not in accordance with the agreement is avoided. The mutual agreement settlement shall be carried out notwithstanding the time limits of the domestic law of the Contracting States. 3.

3 The competent authorities of the Contracting States shall endeavor to resolve any difficulties interpretation or application of the Convention shall be resolved by mutual agreement. They may also jointly consult together on the avoidance of double taxation in cases not covered by the Convention. Agreements are not dealt with. The submission of a case in accordance with paragraph 1. is not required in this respect.

(4) The competent authorities of the Contracting States may, for the purpose of reaching a agreement within the meaning of the preceding paragraphs directly with each other, may also do so through a joint commission consisting of them or their representatives.

5. If

(a) a person referred to in paragraph (1) has submitted a case to the competent authority of a State Party State on the ground that measures taken by one or both of the Contracting States have resulted in both Contracting States have resulted in taxation in respect of that person which is not in accordance with thisConvention; and

1. b) the competent authorities are unable to reach agreement within 2 years in accordance with resolution of the case since the submission of the case to the competent authority of the other Contracting competent authority of the other Contracting State, all unresolved issues in the case shall, at the request of the person, be submitted to arbitration at the request of the person. However, such unresolved issues shall not be submitted to arbitration if they have already been the subject of a judicial decision that has been issued by one of the states. Unless a person who is directly affected by the case directly concerned in the case objects to the mutual agreement implementing the award. the award shall be binding on both States and shall be enforced regardless of the time limits of the domestic law of those States. The competent authorities of these Contracting States shall, by mutual agreement, regulate the application of this paragraph.

 

Article 25

Exchange of information

(1) The competent authorities of the Contracting States shall exchange such information as is necessary for the implementation of this Agreement or for the application or enforcement of domestic national law relating to taxes of every kind and description levied for the account of the Contracting States or their local authorities, or their local authorities, to the extent that the taxation corresponding to such law is not inconsistent with the Convention. The exchange of information shall not be restricted by Articles 1 and 2.

(2) Any information received by a Contracting State pursuant to paragraph 1 of this article shall be as confidential as the information obtained under the domestic law of that State and shall be disclosed only to persons or authorities (including the courts and administrative authorities), concerned with the assessment or collection, enforcement or prosecution, or adjudicating appeals with respect to the taxes referred to in paragraph 1 of this article or with the supervision thereof. Such persons or authorities may use the Information only for those purposes. They may not use the information in any public judicial proceeding or in a judicial decision.

(3) Paragraphs (1) and (2) shall not be construed as requiring a State Party,

(a) to carry out administrative measures that are not permitted by the laws and administrative practice of that or the other State Party;

(b) to provide information that is not required by the laws or customary administrative procedure of that or the other Contracting State; b) to provide information that can be obtained;

(c) to provide information that would violate a trade, industrial, commercial or professional secret or commercial process, or the disclosure of which would be contrary to public would be contrary to public policy.

(4) If a State Party requests information pursuant to this Article, the other State Party shall use the means State Party shall use the means available to it to obtain the information requested, even if the State information requested, even if that other State does not need the information for its own tax purposes. its own fiscal purposes. The obligation contained in the preceding sentence shall be subject to the limitations set forth in paragraph 3, but such limitations shall not be shall not, however, be construed to permit a Contracting State to refuse to supply information solely because it information merely because it has no domestic tax interest in such information.

5. paragraph 3 shall in no case be construed as permitting a Contracting State to refuse to provide information upon request solely because the information is held by a bank, other credit institution bank, other credit institution, agent, representative or fiduciary, or because it is held by a trustee or because it relates to the ownership of a person.

 

Article 26

Members of diplomatic missions and consular posts

This Agreement shall not affect the tax privileges accorded to members of members of diplomatic missions and consular posts in accordance with the general rules of international law or by virtue of special conventions.

 

Article 27

Entry into force

(1) Each of the Contracting States shall notify the other Contracting State in writing through diplomatic channels that the legal procedures for the entry into force of the present Agreement have been completed. This Agreement shall enter into force on the date of receipt of the last of these official communications.

2. the Agreement shall apply

(a) in the case of taxes levied by deduction on income received on or after January 1 of the calendar year following the year in which the Agreement enters into force.

(b) in the case of other taxes on income and net worth, on the taxes credited for each year of assessment or taxation on or after January 1 of the calendar year following the year in which the Agreement entered into force.

 

Article 28

Termination

(1) This Agreement shall remain in force as long as it is not denounced by a Contracting State is denounced. Either Contracting State may denounce the Agreement through diplomatic channels by giving of at least six months’ notice to the end of any calendar year after the expiration of five years from the date of entry into force.

2. the Agreement shall cease to apply

(a) in the case of taxes levied by deduction on income earned on or after January 1 of the calendar year following the year in which the agreement was year following the year of termination;

(b) in the case of other income taxes and property taxes, to the taxes credited for any year of assessment or taxation on or after January 1 of the calendar year levied following the year of termination.