Common use of in U Clause in Contracts

in U. A.E. double taxation shall be eliminated as follows: (a) Where a resident of U.A.E. derives income which, in accordance with the provisions of this Agreement, may be taxed in Singapore, U.A.E. shall allow as a deduction from the tax on the income of that person, an amount equal to the Singapore tax paid on that income. Subject to the provisions of sub- paragraph (b), where such income is a dividend paid by a company which is a resident of Singapore to a resident of U.A.E. the deduction shall take into account Singapore tax payable on the profits of the company paying the dividends. Such deduction shall not, however, exceed that part of the tax on the income, as computed before the deduction is given, which is attributable to the income which may be taxed in Singapore. (b) Dividends paid by a company which is a resident of Singapore to a company which is a resident of U.A.E. shall be exempt from U.A.E. tax to the extent that the dividends would have been exempt from tax under U.A.E. taxation law if both companies had been residents of U.A.E. (c) Where in accordance with any provision of the Agreement income derived by a resident of U.A.E. is exempt from tax in U.A.E., U.A.E. may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. (d) For the purposes of sub-paragraph (a) the term "Singapore tax paid" shall be deemed to include any amount which would have been payable as Singapore tax for any year but for - (i) any reduction or exemption of Singapore tax on income arising from Singapore granted under the provisions concerning the special incentive measures to promote economic development in Singapore effective on the date of signature of the Agreement; (ii) any reduction or exemption of Singapore tax granted under any other provisions which may subsequently be enacted and which the competent authorities of the Contracting States agree to be for the purpose of promoting economic development.