Where. a) an enterprise of a Contracting State participates directly or indi- rectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the manage- ment, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. It is understood, however, that the fact that associated enterprises have con- cluded arrangements, such as costsharing arrangements or general serv- ices agreements, for or based on the allocation of executive, general administrative, technical and commercial expenses, research and devel- opment expenses and other similar expenses, is not in itself a condition as meant in the preceding sentence.
Appears in 6 contracts
Samples: Convention for the Avoidance of Double Taxation, Double Taxation Agreement, Convention for the Avoidance of Double Taxation
Where. a) an enterprise of a Contracting State participates directly or indi- rectly in the management, control or capital of an enterprise of the other Contracting State, or
b) the same persons participate directly or indirectly in the manage- ment, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly. It is understood, however, that the fact that associated enterprises have con- cluded arrangements, such as costsharing cost sharing arrangements or general serv- ices ser- vices agreements, for or based on the allocation of executive, general administrative, technical and commercial expenses, research and devel- opment expenses and other similar expenses, is not in itself a condition as meant in the preceding sentence.
Appears in 2 contracts
Samples: Convention for the Avoidance of Double Taxation, Verdrag Tot Het Vermijden Van Dubbele Belasting