Common use of METHODS FOR ELIMINATION OF DOUBLE TAXATION Clause in Contracts

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2. In the case of India, double taxation shall be eliminated as follows: Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Malaysia, India shall allow as a deduction from the tax on the income of that resident an amount equal to the amount of tax paid in Malaysia whether directly or by deduction at source. Such amount shall not, however, exceed that part of the tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Malaysia. 3. For the purposes of paragraph 4, the term "tax paid in Malaysia" shall be deemed to include the tax which would, under the laws of Malaysia and in accordance with this Agreement, have been payable on any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from Malaysian tax in accordance with the provisions of this Agreement and the special incentives under the Malaysian laws for the promotion of economic development of Malaysia which were in force at the date of signature of this Agreement or any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character. 4. In the case of Malaysia, double taxation shall be eliminated as follows: Subject to the laws of Malaysia regarding the allowance as a credit against Malaysian tax of tax payable in any country other than Malaysia, tax paid in India under the taxation laws of India and in accordance with the provisions of this Agreement, by a resident of Malaysia in respect of income derived from India shall be allowed as a credit against tax payable in Malaysia in respect of that income. Where such income is a dividend paid by a company which is a resident of India to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account tax paid in India by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part of the Malaysian tax, as computed before the credit is given, which is attributable to such item of income. 5. For the purposes of paragraph 2, the term "tax paid in India" shall be deemed to include the tax which would, under the laws of India and in accordance with this Agreement, have been payable on any income derived from sources in India had the income not been taxed at a reduced rate or exempted from Indian tax in accordance with the provisions of this Agreement and the special incentives under the Indian laws for the promotion of economic development of India which were in force at the date of signature of this Agreement or any other provisions which may subsequently be introduced in India in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character,

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2. In the case of Indiaa resident of Korea, double taxation shall be eliminated avoided as follows: Where a resident of India derives income which, in accordance with Subject to the provisions of this Agreement, may be taxed in Malaysia, India shall allow Korean tax law regarding the allowance as a deduction from the credit against Korean tax on the income of that resident an amount equal to the amount of tax paid payable in Malaysia whether directly or by deduction at source. Such amount any country other than Korea which shall notnot affect the general principle hereof, however, exceed that part the Malaysian tax payable (excluding in the case of a dividend tax payable in respect of the tax (as computed before profits out of which the deduction dividend is givenpaid) which is attributable to the income which may be taxed in Malaysia. 3. For the purposes of paragraph 4, the term "tax paid in Malaysia" shall be deemed to include the tax which would, under the laws of Malaysia and in accordance with this Agreement, whether directly or by deduction, in respect of income from sources within Malaysia shall be allowed as a credit against Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of Korean tax which the income from sources within Malaysia bears to the entire income subject to Korean tax. 2. For the purpose of paragraph 1, the term "Malaysian tax payable" shall be deemed to include: (a) in respect of dividends received from a company which is a resident of Malaysia, any amount which would have been payable on any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from as Malaysian tax in accordance with the provisions of this Agreement and the special incentives but for an exemption from tax granted under the Malaysian laws relating to incentives for the promotion of economic development of in Malaysia which were in force at on the date of signature of this Agreement or any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character: Provided that any deduction from Korean tax granted in accordance with the provisions of this paragraph shall not exceed an amount equal to 20 per cent of the gross amount of the dividends; (b) in the case of interest to which paragraph 3 of Article 11 applies, an amount not exceeding 15 per cent of the gross amount of the interest in respect of which Malaysian tax would have been payable but for the exemption granted in accordance with that paragraph; (c) in the case of approved industrial royalties to which paragraph 3 of Article 12 applies, an amount not exceeding 15 per cent of the gross amount of the royalties in respect of which Malaysian tax would have been payable but for the exemption granted in accordance with that paragraph. 43. In the case of a resident of Malaysia, double taxation shall be eliminated avoided as follows: Subject to the laws provisions of the law of Malaysia regarding the allowance as a credit against Malaysian tax of tax payable in any country other than MalaysiaMalaysia which shall not affect the general principle thereof, the Korean tax paid payable (excluding in India the case of a dividend tax payable in respect of the profits out of which the dividend is paid) under the taxation laws law of India Korea and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of Malaysia in respect of income derived from India sources within Korea shall be allowed as a credit against Malaysian tax payable in Malaysia in respect of such income, but in an amount not exceeding that income. Where portion of Malaysian tax which such income is a dividend paid by a company which is a resident of India bears to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account tax paid in India by that company in respect of its entire income out of which the dividend is paid. The credit shall not, however, exceed that part of the chargeable to Malaysian tax, as computed before the credit is given, which is attributable to such item of income. 54. For the purposes of paragraph 23, the term "Korean tax paid in Indiapayable" shall shall, notwithstanding any reduction of tax under the provisions of paragraph 2 of Articles 10, 11 or 12, be deemed to include the amount of Korean tax which would, under the laws of India and would have been payable in accordance with this Agreement, have been payable on any income derived from sources in India had Korean tax laws but for the income not been taxed at a reduced rate exemption or exempted from Indian reduction of Korean tax in accordance with the provisions of this Agreement and the special Korean laws relating to incentives under the Indian laws for the promotion of economic development of India in Korea which were in force at on the date of signature of this Agreement or any other provisions which may subsequently be introduced in India Korea in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States State to be of a substantially similar character,: Provided that the amount of the tax referred to in this paragraph shall not, however, exceed: (a) in the case of dividends an amount of 20 per cent of the gross amount of such dividend; (b) in the case of interest an amount of 15 per cent of the gross amount of such interest; and (c) in the case of royalties an amount of 15 per cent of the gross amount of such royalties.

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. The laws in force in either of the Contracting States will shall continue to govern the taxation of income in the respective Contracting States except where express provisions to the contrary are made in this Agreement. Where income is subject to tax in both States relief from double taxation shall be given in accordance with the following paragraphs. 2. In the case of IndiaRomania, double taxation shall be eliminated as follows: Where taxes paid in Malaysia by a resident of India derives Romania on income which, in accordance with the provisions of this Agreement, may be taxed in Malaysia, India shall allow as a deduction from the tax on the income of that resident an amount equal to the amount of tax paid in Malaysia whether directly or by deduction at source. Such amount shall not, however, exceed that part of the tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Malaysia. 3. For the purposes of paragraph 4, the term "tax paid in Malaysia" shall be deemed to include the tax which would, under the laws of Malaysia and in accordance with this Agreement, have been payable on any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from Malaysian tax in accordance with the provisions of this Agreement and shall be deducted from Romania taxes payable, but in an amount not exceeding that portion of Romania tax which such income bears to the special incentives entire income chargeable to Romanian tax. Profits paid by the Romanian State enterprises to the State budget shall, in this Article, be deemed as a tax of Romania. 3. For the purpose of paragraph 2 the term "Malaysian tax payable" shall be deemed to include: (a) in respect of dividends received from a company which is a resident of Malaysia, any amount which would have been payable as Malaysian tax but for an exemption from tax granted under the Malaysian laws relating to incentives for the promotion of economic development of in Malaysia which were in force at on the date of signature of this Agreement or any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character; (b) interest to which paragraph 3 of Article 11 applies had that interest not been exempted from Malaysian tax in accordance with that paragraph; and (c) approved industrial royalties to which paragraph 3 of Article 12 applies had those royalties not been exempted from Malaysian tax in accordance with that paragraph. 4. For the purposes of paragraph 2, where royalties derived by a resident of Romania are, as film rentals, subject to cinematograph film-hire duty in Malaysia, that duty shall be deemed to be Malaysian tax. 5. In the case of Malaysia, double taxation shall be eliminated as follows: Subject subject to the provisions of the laws of Malaysia regarding the allowance as a credit against Malaysian tax of tax payable in any country other than Malaysia, Romanian tax paid in India payable under the taxation laws of India Romania and in accordance with the provisions of this Agreement, whether directly or by deduction, (excluding in the case of a dividend, tax payable in respect of the profits out of which the dividend is paid) by a resident of Malaysia in respect of income derived from India sources within Romania which has been subjected to tax both in Romania and Malaysia shall be allowed as a credit against Malaysian tax payable in Malaysia in respect of such income, but in an amount not exceeding that income. Where portion of Malaysian tax which such income is a dividend paid by a company which is a resident of India bears to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account tax paid in India by that company in respect of its entire income out of which the dividend is paid. The credit shall not, however, exceed that part of the chargeable to Malaysian tax, as computed before the credit is given, which is attributable to such item of income. 5. For the purposes of paragraph 2, the term "tax paid in India" shall be deemed to include the tax which would, under the laws of India and in accordance with this Agreement, have been payable on any income derived from sources in India had the income not been taxed at a reduced rate or exempted from Indian tax in accordance with the provisions of this Agreement and the special incentives under the Indian laws for the promotion of economic development of India which were in force at the date of signature of this Agreement or any other provisions which may subsequently be introduced in India in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character,

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2. In the case of India, double taxation shall be eliminated as follows: Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Malaysia, India shall allow as a deduction from the tax on the income of that resident an amount equal to the amount of tax paid in Malaysia whether directly or by deduction at source. Such amount shall not, however, exceed that part of the tax (as computed before the deduction is given) which is attributable to the income which may be taxed in Malaysia. 3. For the purposes of paragraph 4, the term "tax paid in Malaysia" shall be deemed to include the tax which would, under the laws of Malaysia and in accordance with this Agreement, have been payable on any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from Malaysian tax in accordance with the provisions of this Agreement and the special incentives under the Malaysian laws for the promotion of economic development of Malaysia which were in force at the date of signature of this Agreement or any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character. 4. In the case of MalaysiaVietnam, double taxation shall be eliminated as follows: Subject to the laws provisions of Malaysia the law of Vietnam which relate to the allowance of a credit against Vietnamese tax of tax paid in a country outside Vietnam (which shall not affect the general principle of this Article), Korean tax payable under the law of Korea and in accordance with this Agreement, whether directly or by deduction, in respect of income derived by a resident of Vietnam from sources within Korea shall be allowed as a credit against Vietnamese tax payable in respect of that income. The credit shall not, however, exceed the Vietnamese tax as computed by reference to the same income before the credit is given. 2. In the case of a resident of Korea, double taxation shall be eliminated as follows: Subject to the provisions of the Korean tax law regarding the allowance as a credit against Malaysian Korean tax of tax payable in any country other than MalaysiaKorea (which shall not affect the general principle hereof), the Vietnamese tax payable (excluding, in the case of dividends, tax paid payable in India respect of the profits out of which the dividends are paid) under the taxation laws of India Vietnam and in accordance with the provisions of this Agreement, whether directly or by a resident of Malaysia deduction, in respect of income derived from India sources within Vietnam shall be allowed as a credit against Korean tax payable in Malaysia in respect of that income. Where such income is a dividend paid by a company which is a resident of India to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account tax paid in India by that company in respect of its income out of which the dividend is paid. The credit shall not, however, exceed that part proportion of Korean tax which the Malaysian income from source within Vietnam bears to the entire income subject to the Korean tax, as computed before the credit is given, which is attributable to such item of income. 53. For the purposes of credit referred to in paragraph 2, the term "Vietnamese tax paid in Indiapayable" shall be deemed to include the amount of Vietnamese tax which wouldwhich, under the laws of India Vietnam and in accordance with this Agreement, would have been payable on any income derived from sources in India had the income Vietnamese tax not been taxed at a exempted or reduced rate or exempted from Indian tax in accordance with with: a. the provisions of this Agreement Articles 26, 27, 28, 32 or 33 of the Law on Foreign investment in Vietnam 1987 as amended from time to time and the special incentives under the Indian laws for the promotion of economic development of India which were in force at connected regulations, as are effective on the date of signature of this Agreement or as have been modified only in minor aspects after the date of signature of this Agreement; or b. any other provisions special incentive measures designed to promote economic development in Vietnam which may subsequently be introduced in India hereafter in modification of, of or in addition to, those laws so far the existing laws, as they are may be agreed by between the competent authorities of the Contracting States States. 4. For the purpose of Korean tax credit referred to in paragraph 2, the Vietnamese tax payable shall, irrespective of the amount of tax actually paid, be deemed to be, in the case of: a. dividents or interest, 10 per cent of the gross amount of the dividends or interest derived from sources within Vietnam; and b. royalties, 15 per cent of the gross amount of the royalties derived from sources within Vietnam. 5. The provisions of paragraphs 3 and 4 of this Article shall apply only during a substantially similar character,period of ten years starting from the first day of the calendar year next following that in which this Agreement enters into force in accordance with the provisions of Article

METHODS FOR ELIMINATION OF DOUBLE TAXATION. 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2. In the case of Indiaa resident of Korea, double taxation shall be eliminated avoided as follows: Where a resident of India derives income which, in accordance with Subject to the provisions of this Agreement, may be taxed in Malaysia, India shall allow Korean tax law regarding the allowance as a deduction from the credit against Korean tax on the income of that resident an amount equal to the amount of tax paid payable in Malaysia whether directly or by deduction at source. Such amount any country other than Korea which shall notnot affect the general principle hereof, however, exceed that part the Malaysian tax payable (excluding in the case of a dividend tax payable in respect of the tax (as computed before profits out of which the deduction dividend is givenpaid) which is attributable to the income which may be taxed in Malaysia. 3. For the purposes of paragraph 4, the term "tax paid in Malaysia" shall be deemed to include the tax which would, under the laws of Malaysia and in accordance with this Agreement, whether directly or by deduction, in respect of income from sources within Malaysia shall be allowed as a credit against Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of Korean tax which the income from sources within Malaysia bears to the entire income subject to Korean tax. 2. For the purpose of paragraph 1, the term "Malaysian tax payable" shall be deemed to include: (a) in respect of dividends received from a company which is a resident of Malaysia, any amount which would have been payable on any income derived from sources in Malaysia had the income not been taxed at a reduced rate or exempted from as Malaysian tax in accordance with the provisions of this Agreement and the special incentives but for an exemption from tax granted under the Malaysian laws relating to incentives for the promotion of economic development of in Malaysia which were in force at on the date of signature of this Agreement or any other provisions which may subsequently be introduced in Malaysia in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character: Provided that any deduction from Korean tax granted in accordance with the provisions of this paragraph shall not exceed an amount equal to 20 per cent of the gross amount of the dividends; (b) in the case of interest to which paragraph 3 of Article 11 applies, an amount not exceeding 15 per cent of the gross amount of the interest in respect of which Malaysian tax would have been payable but for the exemption granted in accordance with that paragraph; (c) in the case of approved industrial royalties to which paragraph 3 of Article 12 applies, an amount not exceeding 15 per cent of the gross amount of the royalties in respect of which Malaysian tax would have been payable but for the exemption granted in accordance with that paragraph. 43. In the case of a resident of Malaysia, double taxation shall be eliminated avoided as follows: ; Subject to the laws provisions of the law of Malaysia regarding the allowance as a credit against Malaysian tax of tax payable in any country other than MalaysiaMalaysia which shall not affect the general principle thereof, the Korean tax paid payable (excluding in India the case of a dividend tax payable in respect of the profits out of which the dividends is paid) under the taxation laws law of India Korea and in accordance with the provisions of this Agreement, whether directly or by deduction, by a resident of Malaysia in respect of income derived from India sources within Korea shall be allowed as a credit against Malaysian tax payable in Malaysia in respect of such income, but in an amount not exceeding that income. Where portion of Malaysian tax which such income is a dividend paid by a company which is a resident of India bears to a company which is a resident of Malaysia and which owns not less than 10 per cent of the voting shares of the company paying the dividend, the credit shall take into account tax paid in India by that company in respect of its entire income out of which the dividend is paid. The credit shall not, however, exceed that part of the chargeable to Malaysian tax, as computed before the credit is given, which is attributable to such item of income. 54. For the purposes of paragraph 23, the term "Korean tax paid in Indiapayable" shall shall, notwithstanding any reduction of tax under the provisions of paragraph 2 of Articles 10, 11 or 12, be deemed to include the amount of Korean tax which would, under the laws of India and would have been payable in accordance with this Agreement, have been payable on any income derived from sources in India had Korean tax laws but for the income not been taxed at a reduced rate exemption or exempted from Indian reduction of Korea tax in accordance with the provisions of this Agreement and the special Korean laws relating to incentives under the Indian laws for the promotion of economic development of India in Korea which were in force at on the date of signature of this Agreement or any other provisions which may subsequently be introduced in India Korea in modification of, or in addition to, those laws so far as they are agreed by the competent authorities of the Contracting States to be of a substantially similar character,: Provided that the amount of the tax referred to in this paragraph shall not, however, exceed: (a) in the case of dividends an amount of 20 per cent of the gross amount of such dividend; (b) in the case of interest an amount of 15 per cent of the gross amount of such interest; and (c) in the case of royalties an amount of 15 per cent of the gross amount of such royalties.