Limitation on Benefits. 1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other State only if such person is: a) an individual; b) a Contracting State or a political subdivision or local authority thereof; c) engaged in an active conduct of a trade or business in the first-mentioned Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and the income derived from the other Contracting State is derived in connection with, or is incidental to, that trade or business; d) a person, other than an individual, if: (i) more than 50 percent of the beneficial interest in such person (or in the case of a company more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph or who are citizens of the United States; and (ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph and are not citizens of the United States; e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or f) an entity which is a not-for-profit organization (including pension funds and private foundations), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than one half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention. 2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines. 3. For the purposes of subparagraph e) of paragraph 1, the term. “a recognized stock exchange" means:
Appears in 4 contracts
Samples: Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation
Limitation on Benefits. 1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other State only if such person is:
a) an individual;
b) a Contracting State or a political subdivision or local authority thereof;
c) engaged in an the active conduct of a trade or business in the first-mentioned Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and the income derived from the that other Contracting State is derived in connection with, or is incidental to, that trade business;
c) a company the shares of which are traded in the first-mentioned State on a substantial and regular basis on an officially recognized securities exchange or businessa company which is wholly owned, directly or indirectly, by another company that is a resident of the first-mentioned State and the shares of which are so traded;
d) a personnot-for-profit organization that is generally exempt from income taxation in its Contracting State of residence, other provided that more than an individualhalf of the beneficiaries, ifmembers or participants, if any, in such organization are entitled, under this Article, to the benefits of this Convention; or
e) a person that satisfies both of the following conditions:
(i) more than 50 percent of the beneficial interest in such person (person, or in the case of a company company, more than 50 percent of the number of shares of each class of the company's shares) , is owned, owned directly or indirectly, indirectly by persons entitled to the benefits of this Convention under subparagraph subparagraphs a), bc) or d), e) or f) of this paragraph or who are citizens of the United States; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to the benefits of this Convention under subparagraph subparagraphs a), b), ec) or f) of this paragraph and are not citizens of the United States;
e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or
f) an entity which is a not-for-profit organization (including pension funds and private foundationsd), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than one half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph (e) (ii) of paragraph 1, the term. “term "gross income" means gross receipts, or where a recognized stock exchange" means:person is engaged in a business which includes the manufacture or production of goods, gross receipts reduced by the direct costs of labor and materials attributable to such manufacture or production and paid or payable out of such receipts.
Appears in 4 contracts
Samples: Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation
Limitation on Benefits. 1. A person that (other than an individual) which is a resident of a Contracting State and derives income from the other Contracting State shall not be entitled under this Convention Agreement to relief from taxation in that other Contracting State only if such person isunless:
a) an individual;more than 50 percent of the beneficial interest in such person (or in the case of a company, more than 50 percent of the number of shares of each class of the company’s shares) is owned, directly or indirectly, by one or more individual residents of one of the Contracting States or citizens of the United States, or by persons entitled to the benefits of this Agreement under the provisions of paragraphs 3, 4 or 5; and
b) a the income of such person is not used in substantial part, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are neither residents of one of the Contracting States or citizens of the United States, nor persons entitled to the benefits of this Agreement under the provisions of paragraphs 3, 4 or 5.
2. The provisions of paragraph 1 shall not apply if the income derived from the other Contracting State is derived in connection with, or a political subdivision or local authority thereof;
c) engaged in an is incidental to, the active conduct by such person of a trade or business in the first-mentioned Contracting State (other than the business of making or managing financial investments, unless these activities are banking or insurance activities carried on by a bank or an insurance company), and and, in the case of income derived from in connection with the active trade or business, the trade or business is substantial in relation to the activity carried on in the other Contracting State is derived giving rise to the income in connection with, or is incidental to, respect of which treaty benefits are being claimed in that trade or business;other Contracting State.
d) a person, other than an individual, if3. The provisions of paragraph 1 shall not apply if the person deriving the income is:
(i) more than 50 percent of the beneficial interest in such person (or in the case of a company more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph or who are citizens of the United States; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph and are not citizens of the United States;
e) a company which is a resident of a Contracting State in whose principal class of shares there is a substantial and regular trading on a recognized stock exchange; or
fb) an entity which a company that is wholly owned, directly or indirectly, by a company referred to in subparagraph a) provided that each company in the chain of ownership used to satisfy the control requirement of this subparagraph is a resident of a Contracting State. For purposes of this paragraph, the term "recognized stock exchange" means:
a) the NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the Securities and Exchange Commission as a national securities exchange for purposes of the Securities Exchange Act of 1934;
b) The Istanbul Stock Exchange; and
c) any other stock exchange agreed upon by the competent authorities of the Contracting States.
4. The provisions of paragraph 1 shall not apply to a Contracting State or a political subdivision or local authority thereof.
5. The provisions of paragraph 1 shall not apply if the income derived from the other Contracting State is derived by a not-for-profit organization (including pension funds and private foundations), and whichthat, by virtue of that status, is generally exempt from income taxation in the its Contracting State of which it is a residentresidence, provided that that
a) more than one half of its annual support is expended for the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits benefit of the Conventionqualified persons; or
b) more than half of its annual support is derived from qualified persons.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph e) of paragraph 1, the term. “a recognized stock exchange" means:
Appears in 4 contracts
Samples: Taxation Agreement, Taxation Agreement, Taxation Agreement
Limitation on Benefits. 1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other State only if such person is:
a) an individual;
b) a Contracting State or a political subdivision or local authority thereof;
c) engaged in an the active conduct of a trade or business in the first-mentioned Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and the income derived from the that other Contracting State is derived in connection connected with, or is incidental to, that trade business;
c) a company the shares of which are traded in the first-mentioned State' on a substantial and regular basis on an officially recognized securities exchange or businessa company which is wholly owned, directly or indirectly, by another company that is a resident of the first-mentioned State and the shares of which are so traded;
d) a personnot-for-profit organization that is generally exempt from income taxation in its Contracting State of residence, other provided that more than an individualhalf of the beneficiaries, ifmembers or participants, if any, in such organization are entitled, under this Article, to the benefits of this Convention; or
e) a person that satisfies both of the following conditions:
(i) more than 50 percent of the beneficial interest in such person (person, or in the case of a company company, more than 50 percent of the number of shares of each class of the company's company1s shares) ; is owned, owned directly or indirectly, indirectly by persons entitled to the benefits of this Convention under subparagraph subparagraphs a), bc) or d), e) or f) of this paragraph or who are citizens of the United States; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to the benefits of this Convention under subparagraph subparagraphs a), b), ec) or f) of this paragraph and are not citizens of the United States;
e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or
f) an entity which is a not-for-profit organization (including pension funds and private foundationsd), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than one half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph (e) (ii) of paragraph 1, the term. “term "gross income" means gross receipts, or where a recognized stock exchange" means:person is engaged in a business which includes the manufacture or production of goods, gross receipts reduced by the direct costs of labor and materials attributable to such manufacture or production and paid or payable out of such receipts.
Appears in 3 contracts
Samples: Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation
Limitation on Benefits. 1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation entitled, in that other State Contracting State, to all the benefits of this Convention only if such person is:
a) an individual;
b) a Contracting State or a political subdivision or local authority thereof;
c) a person:
i) more than 50 percent of the beneficial interest in which (or in the case of a company, more than 50 percent of the number of shares of each class of shares) is owned, directly or indirectly, by persons entitled to the benefits of this Convention under subparagraphs (a), (b), (d), (e), or (f) or who are citizens of the United States; and
ii) more than 50 percent of the gross income of which is not used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons not entitled to the benefits of this Convention under subparagraphs (a), (b), (d), (e) or (f) or who are not citizens of the United States;
d) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange;
e) a company that is wholly owned, directly or indirectly, by a company referred to in subparagraph (d), provided that each company in the chain of ownership that is used to satisfy the control requirement of this subparagraph is a resident of a Contracting State; or
f) an entity that is a not-for-profit organization and that, by virtue of that status, is generally exempt from income taxation in its Contracting State of residence, provided that more than half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of this Convention.
2. A person that is a resident of a Contracting State and that is engaged in an the active conduct of a trade or business in the first-mentioned that Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and shall, notwithstanding the provisions of paragraph 1, be entitled to benefits of the Convention with respect to any item of income derived from the other Contracting State, if:
a) i) the income derived from the that other Contracting State is derived in connection with, or is incidental to, that with the trade or business;
d) a person, other than an individual, if:
(i) more than 50 percent of the beneficial interest in such person (or business carried on in the case of a company more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph or who are citizens of the United Statesfirst-mentioned Contracting State; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph and are not citizens of the United States;
e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or
f) an entity which is a not-for-profit organization (including pension funds and private foundations), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than one half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph e) of paragraph 1, the term. “a recognized stock exchange" means:
Appears in 2 contracts
Samples: Convention for the Avoidance of Double Taxation, Convention for the Avoidance of Double Taxation
Limitation on Benefits. 1. ) A person that (other than an individual) which is a resident of a Contracting State and derives income from the other Contracting State shall not be entitled under this Convention Agreement to relief from taxation in that other Contracting State only if such person isunless:
a) an individual;more than 50 percent of the beneficial interest in such person (or in the case of a company, more than 50 percent of the number of shares of each class of the company’s shares) is owned, directly or indirectly, by one or more individual residents of one of the Contracting States or citizens of the United States, or by persons entitled to the benefits of this Agreement under the provisions of paragraphs 3, 4 or 5; and
b) a the income of such person is not used in substantial part, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are neither residents of one of the Contracting States or citizens of the United States, nor persons entitled to the benefits of this Agreement under the provisions of paragraphs 3, 4 or 5.
2) The provisions of paragraph 1 shall not apply if the income derived from the other Contracting State is derived in connection with, or a political subdivision or local authority thereof;
c) engaged in an is incidental to, the active conduct by such person of a trade or business in the first-mentioned Contracting State (other than the business of making or managing financial investments, unless these activities are banking or insurance activities carried on by a bank or an insurance company), and and, in the case of income derived from in connection with the active trade or business, the trade or business is substantial in relation to the activity carried on in the other Contracting State is derived giving rise to the income in connection with, or is incidental to, respect of which treaty benefits are being claimed in that trade or business;other Contracting State.
d3) a person, other than an individual, ifThe provisions of paragraph 1 shall not apply if the person deriving the income is:
(i) more than 50 percent of the beneficial interest in such person (or in the case of a company more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph or who are citizens of the United States; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph and are not citizens of the United States;
e) a company which is a resident of a Contracting State in whose principal class of shares there is a substantial and regular trading on a recognized stock exchange; or
fb) an entity which a company that is wholly owned, directly or indirectly, by a company referred to in subparagraph a) provided that each company in the chain of ownership used to satisfy the control requirement of this subparagraph is a resident of a Contracting State. For purposes of this paragraph, the term "recognized stock exchange" means:
a) the NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the Securities and Exchange Commission as a national securities exchange for purposes of the Securities Exchange Act of 1934;
b) The Istanbul Stock Exchange; and
c) any other stock exchange agreed upon by the competent authorities of the Contracting States.
4) The provisions of paragraph 1 shall not apply to a Contracting State or a political subdivision or local authority thereof.
5) The provisions of paragraph 1 shall not apply if the income derived from the other Contracting State is derived by a not-for-profit organization (including pension funds and private foundations), and whichthat, by virtue of that status, is generally exempt from income taxation in the its Contracting State of which it is a residentresidence, provided that that
a) more than one half of its annual support is expended for the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits benefit of the Conventionqualified persons; or
b) more than half of its annual support is derived from qualified persons.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph e) of paragraph 1, the term. “a recognized stock exchange" means:
Appears in 1 contract
Samples: Treaty
Limitation on Benefits. 1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other State Contracting State, to all the benefits of this Convention only if such person is:
a) an individual;
b) a Contracting State or a political subdivision or local authority thereof;
c) a person:
(i) more than 50 percent of the beneficial interest in which (or in the case of a company, more than 50 percent of the number of shares of each class of shares) is owned, directly or indirectly, by persons entitled to the benefits of this Convention under subparagraphs (a), (b), (d), (e), or (f) or who are citizens of the United States; and
(ii) more than 50 percent of the gross income of which is not used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons not entitled to the benefits of this Convention under subparagraphs (a), (b), (d), (e) or (f) or who are not citizens of the United States;
d) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange;
e) a company that is wholly owned, directly or indirectly, by a company referred to in subparagraph (d), provided that each company in the chain of ownership that is used to satisfy the control requirement of this subparagraph is a resident of a Contracting State; or
f) an entity that is a not-for-profit organization and that, by virtue of that status, is generally except from income taxation in its Contracting State of residence, provided that more than half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of this Convention.
2. A person that is a resident of a Contracting State and that is engaged in an the active conduct of a trade or business in the first-mentioned that Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and shall, notwithstanding the provisions of paragraph 1, be entitled to benefits of the Convention with respect to any item of income derived from the other Contracting State, if:
a) (i) the income derived from the that other Contracting State is derived in connection with, or is incidental to, that with the trade or business;
d) a person, other than an individual, if:
(i) more than 50 percent of the beneficial interest in such person (or business carried on in the case of a company more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph or who are citizens of the United Statesfirst-mentioned Contracting State; and
(ii) not more than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph a), b), e) or f) of this paragraph and are not citizens of the United States;
e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or
f) an entity which is a not-for-profit organization (including pension funds and private foundations), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than one half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention.
2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines.
3. For the purposes of subparagraph e) of paragraph 1, the term. “a recognized stock exchange" means:
Appears in 1 contract
Samples: Double Taxation Avoidance Agreement
