Common use of Allowance of credit Clause in Contracts

Allowance of credit. 1. The laws of the Contracting States shall continue to govern the taxation of income arising in either of the Contracting States except where express provision to the contrary is made in this Convention. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 2. Subject to the provisions of the law of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland, Cyprus tax payable under the laws of Cyprus, whether directly or by deduction, in respect of income from sources within Cyprus shall be allowed as a credit against any Irish tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Cyprus the credit shall take into account (in addition to any Cyprus tax payable in respect of the dividend) the Cyprus tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Cyprus tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate. (1) For the purposes of paragraph 2, “Cyprus tax payable” shall be deemed to include - (a) the Cyprus tax which would have been payable on any profits or interest granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief; (b) the Cyprus tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief. (2) For the purposes of the foregoing provisions of this paragraph-- (a) “profits or interest granted tax incentive exemption or relief in Cyprus” means profits or interest which were not taken into account for the purposes of Cyprus tax or which were exempted or relieved from Cyprus tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “dividend paid out of profits granted tax incentive exemption or relief in Cyprus” means a dividend received from a company resident in Cyprus and paid out of profits granted tax incentive exemption or relief in Cyprus by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Merchant Shipping (Taxing Provisions) Law, No. 47 of 1963, section 3, as amended by Law No. 34 of 1965, section 3. (ii) The Income Tax (Foreign Persons) Law, No. 58 of 1961, sections 8(i), 9 and 10 and the First Schedule to the Law as amended. 4. Subject to the provisions of the law of Cyprus regarding the allowance as a credit against Cyprus tax of tax payable in a territory outside Cyprus, Irish tax payable under the laws of Ireland, whether directly or by deduction, in respect of income from sources within Ireland shall be allowed as a credit against any Cyprus tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Ireland the credit shall take into account (in addition to any Irish tax payable in respect of the dividend) the Irish tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference (1) For the purposes of paragraph 4, “Irish tax payable” shall be deemed to include - (a) the Irish tax which would have been payable on any profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief; (b) the Irish income tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief. (2) For the purposes of the foregoing provisions of this paragraph - (a) “profits granted tax incentive exemption or relief in Ireland” means profits which were not taken into account for the purposes of Irish tax or which were exempted or relieved from Irish tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “dividend paid out of profits granted tax incentive exemption or relief in Ireland” means a dividend received from a company resident in Ireland and paid out of profits granted tax incentive exemption or relief in Ireland by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 (No. 8 of 1956), as amended; (ii) Parts II and III of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), as amended; (iii) Part II of the Finance (Miscellaneous Provisions) Act, 1958 (No. 28 of 1958); and (iv) Part XXV of the Income Tax Act, 1967 (No. 6 of 1967), as amended. 6. Where an individual who is resident in Ireland for the purposes of Irish tax and is also resident in Cyprus for the purposes of Cyprus tax derives income from sources outside both Ireland and Cyprus, tax may be imposed on that income in each of the Contracting States (subject to the law in force in that Contracting State and to any Convention for the avoidance of double taxation of income which may exist between that Contracting State and the territory from which the income is derived) but there shall be allowed against the tax imposed by each Contracting State – on so much of that income as is subjected to tax in both Contracting States 7. For the purposes of paragraph 4 and notwithstanding the provisions of paragraph 6, income derived from sources in the United Kingdom by an individual who is resident in Ireland shall be deemed to be income from sources in Ireland if such income is not subject to United Kingdom income tax. 8. For the purposes of this Article, profits or remuneration arising from the exercise of a profession or employment in one of the Contracting States shall be deemed to be income from sources within that Contracting State, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of a Contracting State shall be deemed to be performed in that Contracting State.

Allowance of credit. 1. The laws of the Contracting States shall continue to govern the taxation of income arising in either of the Contracting States except where express provision to the contrary is made in this Convention. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 2. Subject to the provisions of the law of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland, Cyprus tax payable under the laws of Cyprus, whether directly or by deduction, in respect of income from sources within Cyprus shall be allowed as a credit against any Irish tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Cyprus the credit shall take into account (in addition to any Cyprus tax payable in respect of the dividend) the Cyprus tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Cyprus tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate. (1) a. For the purposes of paragraph 2, “"Cyprus tax payable” " shall be deemed to include - (a) - the Cyprus tax which would have been payable on any profits or interest granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief; (b) the i. The Cyprus tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief. (2) b. For the purposes of the foregoing provisions of this paragraph-- (a) “i. profits or interest granted tax incentive exemption or relief in Cyprus” " means profits or interest which were not taken into account for the purposes of Cyprus tax or which were exempted or relieved from Cyprus tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “; "dividend paid out of profits granted tax incentive exemption or relief in Cyprus” " means a dividend received from a company resident in Cyprus and paid out of profits granted tax incentive exemption or relief in Cyprus by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Merchant Shipping (Taxing Provisions) Law, No. 47 of 1963, section 3, as amended by Law No. 34 of 1965, section 3. (ii) The Income Tax (Foreign Persons) Law, No. 58 of 1961, sections 8(i), 9 and 10 and the First Schedule to the Law as amended. 4. Subject to the provisions of the law of Cyprus regarding the allowance as a credit against Cyprus tax of tax payable in a territory outside Cyprus, Irish tax payable under the laws of Ireland, whether directly or by deduction, in respect of income from sources within Ireland shall be allowed as a credit against any Cyprus tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Ireland the credit shall take into account (in addition to any Irish tax payable in respect of the dividend) the Irish tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference (1) For the purposes of paragraph 4, “Irish tax payable” shall be deemed to include - (a) the Irish tax which would have been payable on any profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief; (b) the Irish income tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief. (2) For the purposes of the foregoing provisions of this paragraph - (a) “profits granted tax incentive exemption or relief in Ireland” means profits which were not taken into account for the purposes of Irish tax or which were exempted or relieved from Irish tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “dividend paid out of profits granted tax incentive exemption or relief in Ireland” means a dividend received from a company resident in Ireland and paid out of profits granted tax incentive exemption or relief in Ireland by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 (No. 8 of 1956), as amended; (ii) Parts II and III of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), as amended; (iii) Part II of the Finance (Miscellaneous Provisions) Act, 1958 (No. 28 of 1958); and (iv) Part XXV of the Income Tax Act, 1967 (No. 6 of 1967), as amended. 6. Where an individual who is resident in Ireland for the purposes of Irish tax and is also resident in Cyprus for the purposes of Cyprus tax derives income from sources outside both Ireland and Cyprus, tax may be imposed on that income in each of the Contracting States (subject to the law in force in that Contracting State and to any Convention for the avoidance of double taxation of income which may exist between that Contracting State and the territory from which the income is derived) but there shall be allowed against the tax imposed by each Contracting State – on so much of that income as is subjected to tax in both Contracting States 7. For the purposes of paragraph 4 and notwithstanding the provisions of paragraph 6, income derived from sources in the United Kingdom by an individual who is resident in Ireland shall be deemed to be income from sources in Ireland if such income is not subject to United Kingdom income tax. 8. For the purposes of this Article, profits or remuneration arising from the exercise of a profession or employment in one of the Contracting States shall be deemed to be income from sources within that Contracting State, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of a Contracting State shall be deemed to be performed in that Contracting State.c.

Allowance of credit. 1. The laws of the Contracting States shall continue to govern the taxation of income arising in either of the Contracting States except where express provision to the contrary is made in this Convention. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 2. Subject to the provisions of the law of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland, Cyprus tax payable under the laws of Cyprus, whether directly or by deduction, in respect of income from sources within Cyprus shall be allowed as a credit against any Irish tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Cyprus the credit shall take into account (in addition to any Cyprus tax payable in respect of the dividend) the Cyprus tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Cyprus tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate. (1) 3. For the purposes of paragraph 2, “"Cyprus tax payable” " shall be deemed to include - (a) a. the Cyprus tax which would have been payable on any profits or interest granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief; (b) b. the Cyprus tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief. (2) . For the purposes of the foregoing provisions of this paragraph--paragraph - (a) “a. profits or interest granted tax incentive exemption or relief in Cyprus” " means profits or interest which were not taken into account for the purposes of Cyprus tax or which were exempted or relieved from Cyprus tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “b. dividend paid out of profits granted tax incentive exemption or relief in Cyprus” " means a dividend received from a company resident in Cyprus and paid out of profits granted tax incentive exemption or relief in Cyprus by reason of the provisions of one or more of the enactments set out in (c) below; (i) i. The Merchant Shipping (Taxing Provisions) Law, No. 47 of 1963, section 3, as amended by Law No. 34 of 1965, section 3. (ii) . The Income Tax (Foreign Persons) Law, No. 58 of 1961, sections 8(i), 9 and 10 and the First Schedule to the Law as amended. 4. Subject to the provisions of the law of Cyprus regarding the allowance as a credit against Cyprus tax of tax payable in a territory outside Cyprus, Irish tax payable under the laws of Ireland, whether directly or by deduction, in respect of income from sources within Ireland shall be allowed as a credit against any Cyprus tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Ireland the credit shall take into account (in addition to any Irish tax payable in respect of the dividend) the Irish tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preferencepreference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Irish tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate. (1) 5. For the purposes of paragraph 44 , “"Irish tax payable” " shall be deemed to include - (a) a. the Irish tax which would have been payable on any profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief; (b) b. the Irish income tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief. (2) . For the purposes of the foregoing provisions of this paragraph - (a) “a. profits granted tax incentive exemption or relief in Ireland” " means profits which were not taken into account for the purposes of Irish tax or which were exempted or relieved from Irish tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “b. dividend paid out of profits granted tax incentive exemption or relief in Ireland” " means a dividend received from a company resident in Ireland and paid out of profits granted tax incentive exemption or relief in Ireland by reason of the provisions of one or more of the enactments set out in (c) below; (i) i. The Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 (No. 8 of 1956), as amended; (ii) . Parts II and III of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), as amended; (iii) . Part II of the Finance (Miscellaneous Provisions) Act, 1958 (No. 28 of 1958); and (iv) . Part XXV of the Income Tax Act, 1967 (No. 6 of 1967), as amended. 6. Where an individual who is resident in Ireland for the purposes of Irish tax and is also resident in Cyprus for the purposes of Cyprus tax derives income from sources outside both Ireland and Cyprus, tax may be imposed on that income in each of the Contracting States (subject to the law in force in that Contracting State and to any Convention for the avoidance of double taxation of income which may exist between that Contracting State and the territory from which the income is derived) but there shall be allowed against the tax imposed by each Contracting State – - on so much of that income as is subjected to tax in both Contracting StatesStates - a credit which bears the same proportion to the amount of that tax (as reduced by any credit allowed in respect of tax payable in the country from which the income is derived) or to the amount of the tax imposed by the other Contracting State (reduced as aforesaid), whichever is the less, as the former amount (before any such reduction) bears to the sum of both amounts (before any such reduction). 7. For the purposes of paragraph 4 and notwithstanding the provisions of paragraph 6, income derived from sources in the United Kingdom by an individual who is resident in Ireland shall be deemed to be income from sources in Ireland if such income is not subject to United Kingdom income tax. 8. For the purposes of this Article, profits or remuneration arising from the exercise of a profession or employment in one of the Contracting States shall be deemed to be income from sources within that Contracting State, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of a Contracting State shall be deemed to be performed in that Contracting State.

Allowance of credit. 1. The laws of the Contracting States shall continue to govern the taxation of income arising in either of the Contracting States except where express provision to the contrary is made in this Convention. Where income is subject to tax in both Contracting States, relief from double taxation shall be given in accordance with the following paragraphs of this Article. 2. Subject to the provisions of the law of Ireland regarding the allowance as a credit against Irish tax of tax payable in a territory outside Ireland, Cyprus tax payable under the laws of Cyprus, whether directly or by deduction, in respect of income from sources within Cyprus shall be allowed as a credit against any Irish tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Cyprus the credit shall take into account (in addition to any Cyprus tax payable in respect of the dividend) the Cyprus tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference shares and representing both a dividend at the fixed rate to which the shares are entitled and an additional participation in profits, the Cyprus tax so payable by the company shall likewise be taken into account in so far as the dividend exceeds that fixed rate. (1) For the purposes of paragraph 2, “Cyprus tax payable” shall be deemed to include - (a) the Cyprus tax which would have been payable on any profits or interest granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief; (b) the Cyprus tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Cyprus but for such tax incentive exemption or relief. (2) For the purposes of the foregoing provisions of this paragraph--paragraph - (a) “profits or interest granted tax incentive exemption or relief in Cyprus” means profits or interest which were not taken into account for the purposes of Cyprus tax or which were exempted or relieved from Cyprus tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “dividend paid out of profits granted tax incentive exemption or relief in Cyprus” means a dividend received from a company resident in Cyprus and paid out of profits granted tax incentive exemption or relief in Cyprus by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Merchant Shipping (Taxing Provisions) Law, No. 47 of 1963, section 3, as amended by Law No. 34 of 1965, section 3. (ii) The Income Tax (Foreign Persons) Law, No. 58 of 1961, sections 8(i), 9 and 10 and the First Schedule to the Law as amended. 4. Subject to the provisions of the law of Cyprus regarding the allowance as a credit against Cyprus tax of tax payable in a territory outside Cyprus, Irish tax payable under the laws of Ireland, whether directly or by deduction, in respect of income from sources within Ireland shall be allowed as a credit against any Cyprus tax payable in respect of that income. Where such income is an ordinary dividend paid by a company resident in Ireland the credit shall take into account (in addition to any Irish tax payable in respect of the dividend) the Irish tax payable by the company in respect of its profits, and, where it is a dividend paid on participating preference (1) For the purposes of paragraph 4, “Irish tax payable” shall be deemed to include - (a) the Irish tax which would have been payable on any profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief; (b) the Irish income tax which would have been deductible from any dividend paid out of profits granted tax incentive exemption or relief in Ireland but for such tax incentive exemption or relief. (2) For the purposes of the foregoing provisions of this paragraph - (a) “profits granted tax incentive exemption or relief in Ireland” means profits which were not taken into account for the purposes of Irish tax or which were exempted or relieved from Irish tax by reason of the provisions of one or more of the enactments set out in (c) below; (b) “dividend paid out of profits granted tax incentive exemption or relief in Ireland” means a dividend received from a company resident in Ireland and paid out of profits granted tax incentive exemption or relief in Ireland by reason of the provisions of one or more of the enactments set out in (c) below; (i) The Finance (Profits of Certain Mines) (Temporary Relief from Taxation) Act, 1956 (No. 8 of 1956), as amended; (ii) Parts II and III of the Finance (Miscellaneous Provisions) Act, 1956 (No. 47 of 1956), as amended; (iii) Part II of the Finance (Miscellaneous Provisions) Act, 1958 (No. 28 of 1958); and (iv) Part XXV of the Income Tax Act, 1967 (No. 6 of 1967), as amended. 6. Where an individual who is resident in Ireland for the purposes of Irish tax and is also resident in Cyprus for the purposes of Cyprus tax derives income from sources outside both Ireland and Cyprus, tax may be imposed on that income in each of the Contracting States (subject to the law in force in that Contracting State and to any Convention for the avoidance of double taxation of income which may exist between that Contracting State and the territory from which the income is derived) but there shall be allowed against the tax imposed by each Contracting State – on so much of that income as is subjected to tax in both Contracting States 7. For the purposes of paragraph 4 and notwithstanding the provisions of paragraph 6, income derived from sources in the United Kingdom by an individual who is resident in Ireland shall be deemed to be income from sources in Ireland if such income is not subject to United Kingdom income tax. 8. For the purposes of this Article, profits or remuneration arising from the exercise of a profession or employment in one of the Contracting States shall be deemed to be income from sources within that Contracting State, and the services of an individual whose services are wholly or mainly performed in ships or aircraft operated by a resident of a Contracting State shall be deemed to be performed in that Contracting State.