Common use of Entitlement to Benefits Clause in Contracts

Entitlement to Benefits. 1. Except as otherwise provided in this Article, a resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 only if such resident is a qualified person as defined in paragraph 2. 2. A resident of a Contracting State is a qualified person only if such resident is either: (a) an individual; (b) the Government of that Contracting State, any political subdivision or local authority thereof or the central bank thereof; (c) a company, if its principal class of shares is regularly traded on one or more recognised stock exchanges; (d) a bank, an insurance company or a securities dealer that is established and regulated as such under the laws of that Contracting State; (e) a pension fund, provided that as of the beginning of the taxable period in which the claim to the benefit is made: (i) more than 50 per cent of the beneficiaries, members or participants of the pension fund are individuals who are residents of either Contracting State; or (ii) more than 75 per cent of the contributions made to the pension fund is derived from residents of either Contracting State which are qualified persons; (f) an organisation established under the laws of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if the tax laws of that Contracting State provide that all or part of its income is exempted from tax or that such person is only subjected to tax with respect to some types of income; or (g) a person other than an individual, if residents of either Contracting State that are qualified persons by reason of either of subparagraphs (a) to (f) own, directly or indirectly, at least 50 per cent of the voting power or other beneficial interests of the person. 3. A resident of a Contracting State shall be entitled to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph if persons that are equivalent beneficiaries own, directly or indirectly, at least 75 per cent of the voting power or other beneficial interests of that resident. 4. For the purposes of applying the provisions of subparagraph (g) of paragraph 2 and paragraph 3, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or paragraph only if such resident satisfies those conditions during the twelve month period preceding the date of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined). (a) A resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) the resident is carrying on business in the first-mentioned Contracting State (other than the business of making or managing investments for the resident’s own account, unless the business is banking, insurance or securities business carried on by a bank, insurance company or securities dealer); and (ii) that item of income is derived in connection with, or is incidental to, that business. (b) If a resident of a Contracting State derives an item of income from a business carried on by that resident in the other Contracting State or derives an item of income arising in the other Contracting State from a person that has with the resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business carried on in the first-mentioned Contracting State is substantial in relation to the business carried on in that other Contracting State. Whether such business is substantial for the purpose of this subparagraph shall be determined on the basis of all the facts and circumstances. (c) In determining whether a person is carrying on business in a Contracting State under subparagraph (a) of this paragraph, the business conducted by a partnership in which that person is a partner and the business conducted by persons connected to such person shall be deemed to be conducted by such person. A person shall be connected to another if one owns, directly or indirectly, at least 50 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent of the voting power of the company) or a third person owns, directly or indirectly, at least 50 per cent of the beneficial interests (or, in the case of a company, at least 50 per cent of the voting power of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and circumstances, one has control of the other or both are under the control of the same person or persons. (a) A resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) that resident functions as a headquarters company for a multinational corporate group; and (ii) the item of income derived from that other Contracting State either is derived in connection with, or is incidental to, the business referred to in clause (ii) of subparagraph (b). (b) A resident of a Contracting State shall be considered a headquarters company for a multinational corporate group for the purpose of subparagraph (a) only if: (i) that resident provides a substantial portion of the overall supervision and administration of the group or provides financing for the group; (ii) the group consists of companies which are residents in, and are carrying on business in, at least five countries, and the business carried on in each of the five countries generates at least 5 per cent of the gross income of the group; (iii) the business carried on in any one country other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent of its gross income is derived from the other Contracting State; (v) that resident has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident is subject to the same income taxation rules in that Contracting State as persons described in paragraph 5. (c) For the purposes of subparagraph (b), a resident of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii), (iii) or (iv) of that subparagraph for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements when averaging the gross income of the three taxable periods preceding that taxable period. 7. A resident of a Contracting State that is neither a qualified person nor entitled under paragraph 3, 5 or 6 to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 shall nevertheless be entitled to such benefits if the competent authority of the other Contracting State determines, in accordance with its domestic law or administrative practice, that the establishment, acquisition or maintenance of such resident and the conduct of its operations did not have the obtaining of such benefits as one of the principal purposes. 8. For the purposes of this Article:

Entitlement to Benefits. 1. Except as otherwise provided in paragraphs 3, 4 and 5 of this Article, a resident of a Contracting State shall not be entitled to the benefits granted a benefit that would otherwise be accorded by the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 only if of this Convention, unless such resident is a qualified person as defined in paragraph 22 of this Article at the time that the benefit would be accorded. 2. A resident of a Contracting State is shall be a qualified person only if such at a time when a benefit would otherwise be accorded by the provisions referred to in paragraph 1 of this Article if, at that time, the resident is eitheris: (a) an individual; (b) the Government of that Contracting State, any political subdivision or local authority thereof thereof, or the central bank thereofan agency or instrumentality of such Contracting State, subdivision or local authority; (c) a companycompany or other entity, if its the principal class of its shares is regularly traded on one or more recognised stock exchanges; (d) a bank, an insurance company or a securities dealer that is established and regulated as such under the laws of that Contracting State; (e) a pension fund, provided that as of if, at the beginning of the taxable period in year for which the claim to the benefit is made: (i) more than , at least 50 per cent of the its beneficiaries, members or participants of the pension fund are individuals who are residents of either Contracting State; or (ii) more than 75 per cent of the contributions made to the pension fund is derived from residents of either Contracting State which are qualified persons; (f) an organisation established under the laws of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if the tax laws of that Contracting State provide that all or part of its income is exempted from tax or that such person is only subjected to tax with respect to some types of income; or (ge) a person other than an individual, if if, on at least half of the days of any twelve month period that includes the time when the benefit would otherwise be accorded, persons that are residents of either that Contracting State and that are qualified persons by reason entitled to benefits referred to in paragraph 1 of either of subparagraphs this Article under subparagraph (a), (b), (c) to or (fd) of this paragraph own, directly or indirectly, at least 50 per cent of the voting power or other beneficial interests shares of the person. 3. A resident of a Contracting State that is not a qualified person pursuant to the provisions of paragraph 2 of this Article shall also be entitled to a benefit granted that would otherwise be accorded by the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 of this Convention with respect to an item of income described in the respective paragraph if if: (a) in the case of a pension fund, at the beginning of the taxable year for which the claim to the benefit is made, at least 75 per cent of its beneficiaries, members or participants are individuals who are equivalent beneficiaries; or (b) in all other cases, on at least half of the days of any twelve month period that includes the time when the benefit would otherwise be accorded, persons that are equivalent beneficiaries own, directly or indirectly, at least 75 per cent of the voting power or other beneficial interests of that resident. 4. For the purposes of applying the provisions of subparagraph (g) of paragraph 2 and paragraph 3, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or paragraph only if such resident satisfies those conditions during the twelve month period preceding the date shares of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined)resident. (a) A resident of a Contracting State shall be entitled to the benefits granted a benefit that would otherwise be accorded by the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 of this Convention with respect to an item of income described in the respective paragraph that is derived from the other Contracting State, regardless of whether the resident is a qualified person, if the resident is engaged in a business activity in the first-mentioned Contracting State, and the income derived from the other Contracting State ifemanates from, or is incidental to, that business activity. For purposes of this paragraph, the term “a business activity” shall not include the following activities or any combination thereof: (i) the resident is carrying on business in the first-mentioned Contracting State operating as a holding company; (other than the business ii) providing overall supervision or administration of a group of companies; (iii) providing group financing (including cash pooling); or (iv) making or managing investments for the resident’s own accountinvestments, unless the business is banking, insurance or securities business these activities are carried on by a bank, insurance company or registered securities dealer); and (ii) that item dealer in the ordinary course of income is derived in connection with, or is incidental to, that businessits business as such. (b) If a resident of a Contracting State derives an item of income from a business carried on activity conducted by that resident in the other Contracting State or derives an item of income arising in the other Contracting State from a person that has with the resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9connected person, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business activity carried on by the resident in the first-mentioned Contracting State to which the item of income is related is substantial in relation to the same business activity or a complementary business activity carried on by the resident or such connected person in that the other Contracting State. Whether such a business activity is substantial for the purpose purposes of this subparagraph shall be determined based on the basis of all the facts and circumstances. (c) In determining whether For purposes of applying this paragraph, business activities conducted by connected persons with respect to a person is carrying on business in resident of a Contracting State under subparagraph (a) of this paragraph, the business conducted by a partnership in which that person is a partner and the business conducted by persons connected to such person shall be deemed to be conducted by such person. A person shall be connected to another if one owns, directly or indirectly, at least 50 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent of the voting power of the company) or a third person owns, directly or indirectly, at least 50 per cent of the beneficial interests (or, in the case of a company, at least 50 per cent of the voting power of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and circumstances, one has control of the other or both are under the control of the same person or personsresident. (a) A 5. If a resident of a Contracting State shall be is neither a qualified person pursuant to the provisions of paragraph 2 of this Article, nor entitled to benefits under paragraph 3 or 4 of this Article, the competent authority of the other Contracting State may, nevertheless, grant the benefits granted accorded by the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 of this Convention with respect to an item of income described in the respective paragraph derived from paragraph, taking into account the other Contracting State if: (i) that resident functions as a headquarters company for a multinational corporate group; and (ii) the item of income derived from that other Contracting State either is derived in connection with, or is incidental to, the business referred to in clause (ii) of subparagraph (b). (b) A resident of a Contracting State shall be considered a headquarters company for a multinational corporate group for the object and purpose of subparagraph (a) this Convention, but only if: (i) if such resident demonstrates to the satisfaction of such competent authority that resident provides a substantial portion of neither its establishment, acquisition or maintenance, nor the overall supervision and administration of the group or provides financing for the group; (ii) the group consists of companies which are residents in, and are carrying on business in, at least five countries, and the business carried on in each of the five countries generates at least 5 per cent of the gross income of the group; (iii) the business carried on in any one country other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent conduct of its gross income is derived from operations, had as one of its principal purposes the other Contracting State; (v) that resident has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident is subject to the same income taxation rules in that Contracting State as persons described in obtaining of such benefits. Before either granting or denying a request made under this paragraph 5. (c) For the purposes of subparagraph (b), by a resident of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii)State, (iii) or (iv) of that subparagraph for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements when averaging the gross income of the three taxable periods preceding that taxable period. 7. A resident of a Contracting State that is neither a qualified person nor entitled under paragraph 3, 5 or 6 to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 shall nevertheless be entitled to such benefits if the competent authority of the other Contracting State determines, in accordance to which the request has been made shall consult with its domestic law or administrative practice, that the establishment, acquisition or maintenance of such resident and the conduct of its operations did not have the obtaining of such benefits as one competent authority of the principal purposesfirst-mentioned Contracting State. 86. For the purposes of the preceding paragraphs of this Article:

Entitlement to Benefits. 1. Except as otherwise provided in this Article, a resident of a Contracting State that derives income from the other Contracting State shall be entitled to all the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 under this Agreement for a taxable year only if such resident is a qualified person as defined in paragraph 22 and satisfies any other specified conditions in the relevant provisions of the Agreement for the obtaining of such benefits. 2. A resident of a Contracting State is a qualified person for a taxable year only if such resident is either: (a) an individual; (b) the Government of that Contracting State, any political subdivision or local authority thereof or the central bank thereofa qualified governmental entity; (c) a company, if its principal class of shares is listed or registered and is regularly traded on one or more recognised stock exchanges; (d) a bank, an insurance company pension fund or a securities dealer that is established and regulated as such under the laws of that Contracting State; (e) a pension fundscheme, provided that that, as of the beginning end of the prior taxable period in which the claim to the benefit is made: (i) year, more than 50 per cent of the beneficiaries, members or participants of the that pension fund or pension scheme are individuals who are residents of either Contracting State; or (ii) more than 75 per cent of the contributions made to the pension fund is derived from residents of either Contracting State which are qualified persons; (fe) an organisation a person established under the laws of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if the tax laws of that Contracting State provide that all or part of its income is exempted may be exempt from tax or under the laws of that such person is only subjected to tax with respect to some types of incomeContracting State; or (gf) a person other than an individual, if at least 65 per cent of the voting shares or other beneficial interests of the person are owned, directly or indirectly, by residents of either that Contracting State that are qualified persons by reason of either subparagraph (a), (b), (c), (d) or (e). 3. Notwithstanding that a resident of subparagraphs a Contracting State may not be a qualified person, that resident shall be entitled to a benefit under this Agreement in respect of an item of income derived from the other Contracting State if that resident satisfies any other specified conditions in the relevant provisions of the Agreement for the obtaining of such benefit and if: (a) to (f) own, directly or indirectly, at least 50 65 per cent of the voting power shares or other beneficial interests of the person. 3. A resident of a Contracting State shall be entitled to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph if persons that person are equivalent beneficiaries ownowned, directly or indirectly, by persons who, if they had derived the item of income directly, would, under the Agreement, be entitled to equivalent or more favourable benefits; or (b) at least 75 90 per cent of the voting power shares or other beneficial interests of the person are owned, directly or indirectly, by persons who, if they had derived the item of income directly, would, under the Agreement or an agreement that residentthe Contracting State from which the item of income arise has concluded with another State, be entitled to equivalent or more favourable benefits. 4. For the purposes of applying Where the provisions of subparagraph (gf) of paragraph 2 and or paragraph 33 apply: (a) in respect of taxation by withholding at source, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or that paragraph only for the taxable year in which payment of an item of income is made if such resident satisfies those conditions during the twelve month period preceding the date of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined).; (ab) A in all other cases, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or that paragraph for a taxable year if such resident satisfies those conditions on at least half the days of the taxable year. (a) Notwithstanding that a resident of a Contracting State may not be a qualified person, that resident shall be entitled to the benefits granted by the provisions a benefit under this Agreement in respect of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) the that resident is carrying on business engaged in the first-mentioned Contracting State active conduct of a business (other than the business of making or managing investments for the that resident’s own account, unless the business is banking, insurance or securities business carried on by a bank, insurance company or securities dealer); and) in the first- mentioned Contracting State; (ii) the income derived from that item of income other Contracting State is derived in connection with, or is incidental to, that business; and (iii) that resident satisfies any other specified conditions in the relevant provisions of the Agreement for the obtaining of such benefit. (b) If a resident of a Contracting State derives an item of income from a business carried on by that resident in the other Contracting State or derives an item of income arising in the other Contracting State from a person that has with the that resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business carried on in the first-first- mentioned Contracting State is substantial in relation to the business carried on in that other Contracting State. Whether such business is substantial for the purpose of this subparagraph paragraph shall be determined on the basis of all the facts and circumstances. (c) In determining whether a person is carrying on engaged in the active conduct of a business in a Contracting State under subparagraph (a) of this paragraph), the business conducted by a partnership in which that person is a partner partner, and the business conducted by persons a person connected to such person only to the extent that both persons are engaged in the same or complementary lines of business, shall be deemed to be conducted by such person. A person shall be connected to another if one owns, directly or indirectly, at least 50 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent of the voting power shares of the company) or a third another person owns, directly or indirectly, at least 50 per cent of the beneficial interests (or, in the case of a company, at least 50 per cent of the voting power shares of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and circumstances, one has control of the other or both are under the control of the same person or persons. (a) A resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) that resident functions as a headquarters company for a multinational corporate group; and (ii) the item of income derived from that other Contracting State either is derived in connection with, or is incidental to, the business referred to in clause (ii) of subparagraph (b). (b) A resident of a Contracting State shall be considered a headquarters company for a multinational corporate group for the purpose of subparagraph (a) only if: (i) that resident provides a substantial portion of the overall supervision and administration of the group or provides financing for the group; (ii) the group consists of companies which are residents in, and are carrying on business in, at least five countries, and the business carried on in each of the five countries generates at least 5 per cent of the gross income of the group; (iii) the business carried on in any one country other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent of its gross income is derived from the other Contracting State; (v) that resident has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident is subject to the same income taxation rules in that Contracting State as persons described in paragraph 5. (c) For the purposes of subparagraph (b), a resident of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii), (iii) or (iv) of that subparagraph for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements when averaging the gross income of the three taxable periods preceding that taxable period. 76. A resident of a Contracting State that is neither a qualified person nor entitled under paragraph 33 or 5 to the benefits referred to in those paragraphs shall, 5 nevertheless, be granted all the benefits under this Agreement or 6 to a benefit granted by under the provisions Agreement in respect of paragraph 3 an item of Article 10income derived from the other Contracting State if, paragraph 3 of Article 11 or paragraph 1 of Article 12 shall nevertheless be entitled to such benefits if upon request from that resident, the competent authority of the that other Contracting State determines, in accordance with its domestic law or administrative practice, that the establishment, acquisition or maintenance of such resident and the conduct of its operations did are considered as not have having the obtaining of such benefits as one of the principal purposes. The competent authority of the Contracting State to which a request has been made under this paragraph by a resident of the other Contracting State will consult with the competent authority of that other Contracting State before rejecting the request. 87. For the purposes of this Article: (a) the term “qualified governmental entity” means the Government of a Contracting State, of a federal state (Land) thereof, or of any political subdivision or local authority thereof, the Bank of Japan, the Federal Bank of Germany (Deutsche Bundesbank) or a person that is wholly owned, directly or indirectly, by the Government of a Contracting State, of a federal state (Land) thereof, or of a political subdivision or local authority thereof;

Entitlement to Benefits. 1. Except as otherwise provided in this Article, a resident of a Contracting State shall not be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 only if unless such resident is a qualified person person, as defined in paragraph 2, at the time when the benefit would otherwise be accorded. 2. A resident of a Contracting State is shall be a qualified person only if such at a time when a benefit would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 1 of Article 11 or paragraph 1 of Article 12 if, at that time, the resident is eitheris: (a) an individual; (b) that Contracting State, a political subdivision or local authority thereof, the Government central bank of that Contracting State, any or an agency or instrumentality of that Contracting State or political subdivision or local authority thereof or the central bank thereofauthority; (c) a companycompany or other entity, if its the principal class of its shares is regularly traded on one or more recognised stock exchanges; (d) a bank, an insurance company or a securities dealer that is established and regulated as such under the laws of that Contracting State; (e) a recognised pension fund, provided that as of if, at the beginning of the taxable period in year for which the claim to the benefit is made: (i) more than , at least 50 per cent of the its beneficiaries, members or participants of the pension fund are individuals who are residents of either Contracting State; or (ii) more than 75 per cent of the contributions made to the pension fund is derived from residents of either Contracting State which are qualified persons; (f) an organisation established under the laws of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if the tax laws of that Contracting State provide that all or part of its income is exempted from tax or that such person is only subjected to tax with respect to some types of income; or (ge) a person other than an individual, if if, at that time and on at least half of the days of a twelve month period that includes that time, persons that are residents of either that Contracting State and that are qualified persons by reason of either of subparagraphs under subparagraph (a), (b), (c) to or (fd) own, directly or indirectly, at least 50 per cent of the voting power or other beneficial interests shares of the person. 3. (a) A resident of a Contracting State shall be entitled to a benefit granted by that would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph that is derived from the other Contracting State, regardless of whether the resident is a qualified person, if persons the resident is engaged in the active conduct of a business in the first-mentioned Contracting State, and the income derived from the other Contracting State emanates from, or is incidental to, that business. For purposes of this paragraph, the term “active conduct of a business” shall not include the following activities or any combination thereof: (i) operating as a holding company; (ii) providing overall supervision or administration of a group of companies; (iii) providing group financing (including cash pooling); (iv) making or managing investments, unless these activities are equivalent beneficiaries owncarried on by a bank, directly insurance enterprise or indirectly, at least 75 per cent registered securities dealer in the ordinary course of the voting power its business as such; or (v) holding or other beneficial interests of that residentmanaging intangible property without producing or developing it. 4(b) If a resident of a Contracting State derives an item of income from a business activity conducted by that resident in the other Contracting State, or derives an item of income arising in the other Contracting State from a connected person, the conditions described in subparagraph (a) shall be considered to be satisfied with respect to such item of income only if the business activity carried on by the resident in the first-mentioned Contracting State to which the item of income is related is substantial in relation to the same or complementary business activity carried on by the resident or such connected person in the other Contracting State. For Whether a business activity is substantial for the purposes of this paragraph shall be determined based on all the facts and circumstances. (c) For purposes of applying the provisions of subparagraph (g) of paragraph 2 and paragraph 3this paragraph, business activities conducted by connected persons with respect to a resident of a Contracting State shall be considered deemed to satisfy the conditions described in that subparagraph or paragraph only if be conducted by such resident satisfies those conditions during the twelve month period preceding the date of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined)resident. (a) 4. A resident of a Contracting State that is not a qualified person shall nevertheless be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (ia) the resident is carrying on business in the first-mentioned Contracting State (other than case of a recognised pension fund, at the business beginning of making the taxable year for which the claim to the benefit is made, at least 75 per cent of its beneficiaries, members or managing investments for the resident’s own account, unless the business is banking, insurance or securities business carried on by a bank, insurance company or securities dealer)participants are individuals who are equivalent beneficiaries; and (ii) that item of income is derived in connection with, or is incidental to, that business.or (b) If a resident in all other cases, at the time when the benefit would otherwise be accorded and on at least half of the days of a Contracting State derives an item of income from a business carried on by twelve month period that resident in the other Contracting State or derives an item of income arising in the other Contracting State from a person includes that has with the resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9time, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business carried on in the first-mentioned Contracting State is substantial in relation to the business carried on in persons that other Contracting State. Whether such business is substantial for the purpose of this subparagraph shall be determined on the basis of all the facts and circumstances. (c) In determining whether a person is carrying on business in a Contracting State under subparagraph (a) of this paragraph, the business conducted by a partnership in which that person is a partner and the business conducted by persons connected to such person shall be deemed to be conducted by such person. A person shall be connected to another if one ownsare equivalent beneficiaries own, directly or indirectly, at least 50 75 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent shares of the voting power of the company) or a third person owns, directly or indirectly, at least 50 per cent of the beneficial interests (or, in the case of a company, at least 50 per cent of the voting power of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and circumstances, one has control of the other or both are under the control of the same person or personsresident. (a) A company that is a resident of a Contracting State that functions as a headquarters company for a multinational corporate group consisting of such company and its direct and indirect subsidiaries shall be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph that is derived from the other Contracting State if: (i) that State, regardless of whether the resident functions as is a headquarters company for a multinational corporate group; and (ii) qualified person, if the item of income derived from that other Contracting State either is derived in connection withemanates from, or is incidental to, the business referred to in clause (ii) of subparagraph (b). (b) A company, being a resident of a Contracting State State, shall be considered a headquarters company for a multinational corporate group for the purpose of subparagraph (a) only if: (i) that resident such company provides a substantial portion of the overall supervision and administration of the group or provides financing for the group; (ii) the group consists of companies which are residents inof, and are carrying on engaged in the active conduct of a business in, at least five countriesfour states, and the business businesses carried on in each of the five countries generates four states (or four groupings of states) generate at least 5 per cent of the gross income of the group; (iii) the business businesses of the group that are carried on in any one country state other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent of its such company’s gross income is derived from the other Contracting State; (v) that resident such company has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident such company is subject to the same income taxation rules in that Contracting State as persons described in paragraph 53. (c) For the purposes of subparagraph (b), a resident the requirements of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii), (iii) or (iv) of that subparagraph shall be deemed to be fulfilled for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements the required ratios are met when averaging the gross income of the three preceding four taxable periods preceding that taxable periodperiods. 76. A If a resident of a Contracting State that is neither a qualified person person, nor entitled to a benefit under paragraph 3, 5 4 or 6 to 5, the competent authority of the Contracting State in which a benefit granted by is denied under the preceding paragraphs of this Article may, nevertheless, grant a benefit that would otherwise be accorded under the provisions of paragraph 3 of Article 10, paragraph 3 1 of Article 11 or paragraph 1 of Article 12 shall nevertheless be entitled with respect to an item of income described in the respective paragraph, taking into account the object and purpose of this Convention, but only if such benefits if resident demonstrates to the satisfaction of such competent authority that neither its establishment, acquisition or maintenance, nor the conduct of its operations, had as one of its principal purposes the obtaining of such benefit. The competent authority of the Contracting State to which a request has been made under this paragraph by a resident of the other Contracting State determines, in accordance shall consult with its domestic law the competent authority of that other Contracting State before either granting or administrative practice, that denying the establishment, acquisition or maintenance of such resident and the conduct of its operations did not have the obtaining of such benefits as one of the principal purposesrequest. 87. For the purposes of this Article:

Entitlement to Benefits. 1. Except as otherwise provided in this Article, a resident of a Contracting State shall not be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 5 of Article 7 or Article 10, paragraph 3 of Article 11 11, 12 or paragraph 1 of Article 12 only if 13 unless such resident is a qualified person person, as defined in paragraph 2, at the time when the benefit would otherwise be accorded. 2. A resident of a Contracting State is shall be a qualified person only if such at a time when a benefit would otherwise be accorded under the provisions of paragraph 5 of Article 7 or Article 10, 11, 12 or 13 if, at that time, the resident is eitheris: (a) an individual; (b) that Contracting State, a political subdivision or local authority thereof, the Government central bank of that Contracting State, any or an agency or instrumentality of that Contracting State or political subdivision or local authority thereof or the central bank thereofauthority; (c) a companycompany or other entity, if its the principal class of its shares is regularly traded on one or more recognised stock exchanges; (d) a bank, an insurance company or a securities dealer that is established and regulated as such under the laws of that Contracting State; (e) a recognised pension fund, provided that as of if, at the beginning of the taxable period in year for which the claim to the benefit is made: (i) more than , at least 50 per cent of the its beneficiaries, members or participants of the pension fund are individuals who are residents of either Contracting State; or (ii) more than 75 per cent of the contributions made to the pension fund is derived from residents of either Contracting State which are qualified persons; (f) an organisation established under the laws of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if the tax laws of that Contracting State provide that all or part of its income is exempted from tax or that such person is only subjected to tax with respect to some types of income; or (ge) a person other than an individual, if if, at that time and on at least half of the days of a twelve month period that includes that time, persons that are residents of either that Contracting State and that are qualified persons by reason of either of subparagraphs under subparagraph (a), (b), (c) to or (fd) own, directly or indirectly, at least 50 per cent of the voting power or other beneficial interests shares of the person. 3. A resident of a Contracting State shall be entitled to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph if persons that are equivalent beneficiaries own, directly or indirectly, at least 75 per cent of the voting power or other beneficial interests of that resident. 4. For the purposes of applying the provisions of subparagraph (g) of paragraph 2 and paragraph 3, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or paragraph only if such resident satisfies those conditions during the twelve month period preceding the date of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined). (a) A resident of a Contracting State shall be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 5 of Article 7 or Article 10, paragraph 3 of Article 11 11, 12 or paragraph 1 of Article 12 13 with respect to an item of income described in the respective paragraph or Article that is derived from the other Contracting State if: (i) State, regardless of whether the resident is carrying on a qualified person, if the resident is engaged in the active conduct of a business in the first-mentioned Contracting State, and the income derived from the other Contracting State (other than the business of making or managing investments for the resident’s own account, unless the business is banking, insurance or securities business carried on by a bank, insurance company or securities dealer); and (ii) that item of income is derived in connection withemanates from, or is incidental to, that business. For purposes of this paragraph, the term “active conduct of a business” shall not include the following activities or any combination thereof: (i) operating as a holding company; (ii) providing overall supervision or administration of a group of companies; (iii) providing group financing (including cash pooling); (iv) making or managing investments, unless these activities are carried on by a bank, insurance enterprise or registered securities dealer in the ordinary course of its business as such; or (v) holding or managing intangible property without producing or developing it. (b) If a resident of a Contracting State derives an item of income from a business carried on activity conducted by that resident in the other Contracting State State, or derives an item of income arising in the other Contracting State from a person that has with the resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9connected person, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business activity carried on by the resident in the first-mentioned Contracting State to which the item of income is related is substantial in relation to the same or complementary business activity carried on by the resident or such connected person in that the other Contracting State. Whether such a business activity is substantial for the purpose purposes of this subparagraph paragraph shall be determined based on the basis of all the facts and circumstances. (c) In determining whether For purposes of applying this paragraph, business activities conducted by connected persons with respect to a person is carrying on business in resident of a Contracting State under subparagraph (a) of this paragraph, the business conducted by a partnership in which that person is a partner and the business conducted by persons connected to such person shall be deemed to be conducted by such person. A person shall be connected to another if one owns, directly or indirectly, at least 50 per cent of the beneficial interests in the other (or, in the case of a company, at least 50 per cent of the voting power of the company) or a third person owns, directly or indirectly, at least 50 per cent of the beneficial interests (or, in the case of a company, at least 50 per cent of the voting power of the company) in each person. In any case, a person shall be considered to be connected to another if, on the basis of all the facts and circumstances, one has control of the other or both are under the control of the same person or personsresident. (a) 4. A resident of a Contracting State that is not a qualified person shall nevertheless be entitled to the benefits granted by a benefit that would otherwise be accorded under the provisions of paragraph 3 5 of Article 7 or Article 10, paragraph 3 of Article 11 11, 12 or paragraph 1 of Article 12 13 with respect to an item of income described in the respective paragraph derived from the other Contracting State or Article if: (ia) that resident functions as in the case of a headquarters company recognised pension fund, at the beginning of the taxable year for a multinational corporate groupwhich the claim to the benefit is made, at least 75 per cent of its beneficiaries, members or participants are individuals who are equivalent beneficiaries; and (ii) the item of income derived from that other Contracting State either is derived in connection with, or is incidental to, the business referred to in clause (ii) of subparagraph (b).or (b) A resident in all other cases, at the time when the benefit would otherwise be accorded and on at least half of the days of a Contracting State shall be considered a headquarters company for a multinational corporate group for the purpose of subparagraph (a) only if: (i) twelve month period that resident provides a substantial portion of the overall supervision and administration of the group includes that time, persons that are equivalent beneficiaries own, directly or provides financing for the group; (ii) the group consists of companies which are residents in, and are carrying on business inindirectly, at least five countries, and the business carried on in each of the five countries generates at least 5 75 per cent of the gross income shares of the group; (iii) the business carried on in any one country other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent of its gross income is derived from the other Contracting State; (v) that resident has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident is subject to the same income taxation rules in that Contracting State as persons described in paragraph 5resident. (c) For the purposes of subparagraph (b), 5. If a resident of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii), (iii) or (iv) of that subparagraph for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements when averaging the gross income of the three taxable periods preceding that taxable period. 7. A resident of a Contracting State that is neither a qualified person person, nor entitled under paragraph 3, 5 or 6 to a benefit granted by the provisions of under paragraph 3 of Article 10or 4, paragraph 3 of Article 11 or paragraph 1 of Article 12 shall nevertheless be entitled to such benefits if the competent authority of the other Contracting State determinesin which a benefit is denied under the preceding paragraphs of this Article may, nevertheless, grant a benefit that would otherwise be accorded under the provisions of paragraph 5 of Article 7 or Article 10, 11, 12 or 13 with respect to an item of income described in accordance with the respective paragraph or Article, taking into account the object and purpose of this Convention, but only if such resident demonstrates to the satisfaction of such competent authority that neither its domestic law or administrative practice, that the establishment, acquisition or maintenance of such resident and maintenance, nor the conduct of its operations did not have operations, had as one of its principal purposes the obtaining of such benefits as one benefit. The competent authority of the principal purposesContracting State to which a request has been made under this paragraph by a resident of the other Contracting State shall consult with the competent authority of that other Contracting State before either granting or denying the request. 86. For the purposes of this Article:

Entitlement to Benefits. 1. Except as otherwise provided in this Articlearticle, a resident of a Contracting State shall not be entitled to the benefits granted a benefit that would otherwise be accorded by the provisions of this Agreement (other than a benefit under paragraph 3 of Article 10article 4, paragraph 3 2 of Article 11 article 9 or paragraph 1 of Article 12 only if article 26) unless such resident is a “qualified person person”, as defined in paragraph 2, at the time that the benefit would be accorded. 2. A resident of a Contracting State is shall be a qualified person only at a time when the benefits under this Agreement would apply if such that resident is eitheris: (a) an An individual; (b) the Government of that A Contracting State, any State or a political subdivision or local authority thereof thereof, or the central bank thereofan entity entirely owned by that State, political subdivision or local authority; (c) a companyA company or other entity, if its throughout the taxable period that includes that time: (i) Its principal class of shares (and any other disproportionate class of shares) is regularly traded on one or more recognised recognized stock exchanges; and either: (A) Its principal class of shares is primarily traded on one or more recognized stock markets located in the Contracting State of which the company or entity is a resident; or (B) The company’s or entity’s primary place of management and control is in the Contracting State of which it is a resident; or (ii) At least 50 per cent of the aggregate vote and value of the shares (and at least 50 per cent of any disproportionate class of shares) in the company or entity is owned directly or indirectly by five or fewer companies or entities entitled to benefits under subparagraph (i) above of the Agreement, provided that, in the case of indirect ownership, each intermediate owner is a resident of either Contracting State; (d) A person other than an individual, that (i) Is a banknot-for-profit institution, an insurance company or a securities dealer that is established and regulated as such under the laws of maintained in that Contracting StateState exclusively for religious, charitable, educational or scientific purposes; (eii) Is incorporated and operated solely as a pension or similar fund, provided that as of the beginning of the taxable period in which the claim to the benefit is made: (i) more than 50 per cent of the beneficiaries, members or participants of the pension fund beneficial interests in that person are owned by individuals who are residents resident of either Contracting State; or (iii) Is incorporated and operated as an investment vehicle for the persons referred to in subparagraph (ii) more than 75 per cent of above, provided that substantially all the contributions made to the pension fund person’s income is derived from residents of either Contracting State which are qualified investments made for such persons; (fe) A person other than an organisation established under individual if (i) At that time and on at least half of the laws days of the taxable period that includes that time, persons who are residents of that Contracting State and operated exclusively for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if who are entitled to the tax laws benefits of that Contracting State provide that all or part of its income is exempted from tax or that such person is only subjected to tax with respect to some types of income; or (g) a person other than an individual, if residents of either Contracting State that are qualified persons by reason of either of this Agreement under subparagraphs (a), (b) to or (fd) or subparagraph (i) of subparagraph (c), of this paragraph, own, directly or indirectly, shares representing at least 50 per cent of the voting power or other beneficial interests aggregate vote and value (and at least 50 per cent of any disproportionate class of shares) of the shares in the person, provided that, in the case of indirect ownership, each intermediate owner is a resident of that Contracting State; and (ii) Less than 50 per cent of the person. 3. A resident of a ’s gross income, as determined in the Contracting State shall be entitled to of which the person is a benefit granted by resident for the provisions of paragraph 3 of Article 10taxable period that includes that time, paragraph 3 of Article 11 is paid or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph if persons that are equivalent beneficiaries ownaccrued, directly or indirectly, at least 75 per cent in the form of payments that are deductible for purposes of the voting power taxes covered by this Agreement in the person’s Contracting State of residence (but not including arm’s length payments in the ordinary course of business for services or other beneficial interests tangible property), to persons that are not residents of that resident. 4. For either Contracting State entitled to the purposes benefits of applying the provisions this Agreement under subparagraphs (a), (b) or (d) or subparagraph (i) of subparagraph (g) c), of paragraph 2 and paragraph 3, a resident of a Contracting State shall be considered to satisfy the conditions described in that subparagraph or paragraph only if such resident satisfies those conditions during the twelve month period preceding the date of the payment (or, in the case of dividends, the date on which entitlement to the dividends is determined).this paragraph; (a) A resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 under this Agreement with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) State, regardless of whether the resident is carrying on a qualified person, if the resident is engaged in the conduct of a business in the first-first- mentioned Contracting State (other than the business of making or managing investments for the resident’s own account, unless the business is these activities are banking, insurance or securities business activities carried on by a bank, insurance company enterprise or registered securities dealer); and (ii) that item of and the income is derived in connection withfrom the other Contracting State emanates from, or is or is incidental to, to that business. (b) If a resident of a Contracting State derives an item of income from a business carried on activity conducted by that resident in the other Contracting State State, or derives an item of income arising in the other Contracting State from a person that has with the resident a relationship described in subparagraph (a) or (b) of paragraph 1 of Article 9connected enterprise, the conditions described in subparagraph (a) of this paragraph shall be considered to be satisfied with respect to such item of income only if the business activity carried on by the resident in the first-mentioned Contracting State to which the income is related is substantial in relation to the same or complementary business activity carried on by the resident or such connected enterprise in that the other Contracting State. Whether such a business activity is substantial for the purpose purposes of this subparagraph paragraph shall be determined based on the basis of all the facts and circumstances. (c) In determining whether For purposes of applying this paragraph, activities conducted by connected persons with respect to a person is carrying on business in resident of a Contracting State under subparagraph (a) of this paragraph, the business conducted by a partnership in which that person is a partner and the business conducted by persons connected to such person shall be deemed to be conducted by such personresident. A person shall be a “connected to another person” if one owns, directly he or indirectly, she owns at least 50 per cent of the beneficial interests interest in the other (or, in the case of a company, at least 50 per cent of the voting power aggregate vote and value of the company) ’s shares or a third of its dividends), or another person owns, directly or indirectly, owns at least 50 per cent of the beneficial interests interest (or, in the case of a company, at least 50 per cent of the voting power aggregate vote and value of the company’s shares or of its dividends) in each person. In any case, a person shall be considered to be connected to another if, based on the basis of all the relevant facts and circumstances, one has control of the other or both are under the control of the same person or persons. (a) A resident of a Contracting State shall be entitled to the benefits granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 with respect to an item of income described in the respective paragraph derived from the other Contracting State if: (i) that resident functions as a headquarters company for a multinational corporate group; and (ii) the item of income derived from that other Contracting State either is derived in connection with, or is incidental to, the business referred to in clause (ii) of subparagraph (b). (b) A resident of a Contracting State shall be considered a headquarters company for a multinational corporate group for the purpose of subparagraph (a) only if: (i) that resident provides a substantial portion of the overall supervision and administration of the group or provides financing for the group; (ii) the group consists of companies which are residents in, and are carrying on business in, at least five countries, and the business carried on in each of the five countries generates at least 5 per cent of the gross income of the group; (iii) the business carried on in any one country other than that Contracting State generate less than 50 per cent of the gross income of the group; (iv) no more than 50 per cent of its gross income is derived from the other Contracting State; (v) that resident has, and exercises, independent discretionary authority to carry out the functions referred to in clause (i); and (vi) that resident is subject to the same income taxation rules in that Contracting State as persons described in paragraph 5. (c) For the purposes of subparagraph (b), 4. If a resident of a Contracting State shall be deemed to satisfy the gross income requirements described in clause (ii), (iii) or (iv) of that subparagraph for the taxable period in which the item of income is derived if that resident satisfies each of those gross income requirements when averaging the gross income of the three taxable periods preceding that taxable period. 7. A resident of a Contracting State that is neither a qualified person nor entitled under paragraph 3, 5 or 6 to a benefit granted by the provisions of paragraph 3 of Article 10, paragraph 3 of Article 11 or paragraph 1 of Article 12 shall nevertheless be not entitled to such benefits if of this Agreement pursuant to the preceding paragraphs of this article, the competent authority of the other Contracting State determinesthat otherwise would have granted such benefits may, nevertheless, grant the benefits of this Agreement in accordance with its domestic law respect of a specific item of income or administrative practicecapital, if such resident demonstrates to the satisfaction of such competent authority, taking into account all the relevant facts and circumstances, that the neither its establishment, acquisition or maintenance of such resident and maintenance, nor the conduct of its operations did not have operations, had as one of its principal purposes the obtaining of such benefits as one under this Agreement. The competent authority of the principal purposesContracting State to which a request has been made, under this paragraph, by a resident of the other State, shall consult with the competent authority of that other Contracting State before either granting or denying the request. 85. For the purposes of the previous paragraphs of this Articlearticle: