Article 1
Personal Scope

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2
Taxes Covered

1. This Convention shall apply to taxes on income and on Funds imposed on behalf of a Contracting State, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income and on Funds all taxes imposed on total income, on total Funds or on elements of income or of Funds, including taxes on gains from the alienation of movable or immovable Property, taxes on the total amounts of wages or salaries paid by enterprises.

3. The existing taxes to which this Convention shall apply are:

   1. in the case of Bahrain: the income tax imposed by Amiri Decree No. (22) of 1979 hereinafter referred to as (Bahrain tax).

   2. in the case of Belarus:

      • the tax on income and profits.

      • the income tax on individuals.

      • the tax on immovable Property hereinafter referred to as (Belarusian tax).

4. The Convention shall apply also to any identical or substantially similar taxes, which are imposed after the date of signature of this Convention in addition to, or in place of, the existing taxes referred to in paragraph (c) of the previous article. The competent authorities of the Contracting States shall notify each other of any substantial changes, which have been made in their respective taxation laws.

Article 3
Definitions

1. For the purposes of this Convention, the following words and expressions shall have the meanings indicated opposite each of them, unless the context requires otherwise:

   1. the terms (a Contracting State) and (the other Contracting State) mean Bahrain or Belarus as the context requires.

   2. the term (Bahrain) means the territory of the Kingdom of Bahrain as well as the maritime areas, seabed and subsoil over which Bahrain exercises, in accordance with international law, sovereign rights and jurisdiction.

   3. the term (Belarus) means the Republic of Belarus and, when used in a geographical sense, means the territory over which the Republic of Belarus exercises under the laws of Belarus and in accordance with international law, sovereign rights and jurisdiction.

   4. the term (person) includes an individual, a company and any other body of persons.

   5. the term (company) means any legal person which is treated as a company in accordance with the laws of a Contracting State.

   6. the term (enterprise) applies to the carrying on by a person of any business.

   7. the terms (enterprise of a Contracting State) and (enterprise of the other Contracting State) mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State.

   8. the term (international traffic) means any transport by a ship or aircraft operated by an enterprise, which has its place of registration in a Contracting State, except when such transport is operated solely between places situated in the other Contracting State.

   9. the term (competent authority) means:

      • in the case of Bahrain, the Minister of Finance and National Economy or his authorized representative.

      • in the case of Belarus, the Ministry of Taxes and Duties or its authorized representative. (national):

      • any individual possessing the nationality of a Contracting State.

      • any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.

   10. the term (business) includes the performance of professional services and of other activities of an independent character.

   11. the term (professional services) includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

Article 4
Resident

1. For the purposes of this Convention, the term (resident of a Contracting State) means:

   1. in the case of Bahrain, its local authorities, any statutory body thereof and any person who under the laws of Bahrain is domiciled or resident in, a citizen of, or having their place of incorporation or management within Bahrain.

   2. in the case of Belarus, any person who, under the laws of Belarus, is liable to tax therein by reason of his domicile or place of registration.

2. Where by reason of the provisions of paragraph (a) an individual is a resident of both Contracting States, then his status shall be determined as follows:

   1. he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests).

   2. if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has a habitual abode.

   3. if he has a habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national.

   4. if each State considers him as its own national or if he is a national of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph (a) a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which it has its place of registration.

Article 5
Permanent Establishment

1. For the purposes of this Convention, the term (permanent establishment) means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2. The term (permanent establishment) includes especially:

   1. a place of management.

   2. a branch.

   3. an office.

   4. a factory.

   5. The workshop.

   6. A mine, an oil or gas well, a quarry, or any other place of extraction or exploitation of natural resources.

   7. a refinery.

   8. A place of collection (storage) of goods belonging to a person who provides storage facilities to others.

   9. a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on.

   10. premises used for the sale of goods or merchandise.

3. The term (permanent establishment) likewise encompasses:

   1. a building site, a construction, assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period of more than twelve months.

   2. the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by an enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the Contracting State for a period or periods exceeding in the aggregate more than twelve months within any twelve months period, commencing or ending in the fiscal year concerned.

4. Without prejudice to the previous provisions in this article, the term (permanent establishment) does not include the following:

   1. Facilities used solely for the purpose of storing goods or commodities owned by the project or held for display.

   2. Warehouses dedicated exclusively to the storage of goods or commercial commodities, and shops solely dedicated to displaying those goods and commodities.

   3. Warehouses for goods and commercial commodities of the project for the sole purpose of utilization by another project.

   4. Any specific site dedicated to the project for purchasing goods or commercial commodities or gathering commercial information for the sole purpose of managing the project's operations.

   5. Maintaining a fixed place of work solely engaged in any preparatory or ancillary work for the project.

   6. Maintaining a fixed place of business solely for engaging in any combination of the activities referred to in paragraphs (1) to (5) provided that the overall activity of the fixed place of business resulting from the aggregate of these activities is of a preparatory or ancillary character.

5. The provisions of paragraphs (a) and (c) shall apply to income derived from the immovable property of a project.

Article 6
Income from Immovable Property

1. Income derived by a resident of a Contracting State from immovable. property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. The term "immovable property" shall have the meaning, which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case, when if is provided for in the domestic legislation, include accessory to immovable Property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable Property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, oil or gas wells, quarries and other places of extraction of natural resources; ships, boats, and aircraft shall not be regarded as immovable Property.

3. The provisions of paragraph (a) shall apply to income derived from the direct use, letting or use in any other form of immovable property.

4. The provisions of paragraphs (a) and (c) shall also apply to the income from the immovable property of an enterprise.

Article 7
Business Profits

1. The profits of an enterprise in any Contracting State shall be subject to tax in that Contracting State only, unless that enterprise carries on business in the other Contracting State through a permanent establishment situated therein. others only to the extent that it results from that permanent establishment.

2. Taking into account the provisions of paragraph (c) of this Article, if an enterprise belonging to one of the Contracting States carries on business in the other Contracting State through a permanent establishment situated in that other State, the profits expected to be derived from it shall be deemed to be derived if it is a distinct and independent establishment carrying on the same or similar activities under the same or similar conditions and is deemed to be independently engaged in the activity in respect of which it is deemed to be a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to its head office or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission, for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on monies lent to the permanent establishment by the head office of the enterprise or any of its other offices.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph (b) shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this Article.

5. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods. Or merchandise for the enterprise.

6. For the purposes of the preceding clauses of this article, the profits to be attributed to the permanent establishment shall be determined by the same method. year by year unless there is good and sufficient reason to the contrary.

7. Where profits include items of income, which are dealt with separately in other Articles of this Convention, then the provisions of those Articles. shall not be affected by the provisions of this Article.

8. Nothing in this Convention will affect the rights of the Government of Bahrain to tax income in Bahrain derived from engaging in the exploration or the production of crude oil or other natural hydrocarbons from the ground of Bahrain, or in refining crude oil in Bahrain pursuant to Amiri Decree No. (22) of 1979.

Article 8
International Traffic

1. Profits of an enterprise of a Contracting State from the operation of ships. or aircraft in international traffic shall be taxable only in that State.

2. For the purposes of this Article, profits from the operation of ships or aircraft in international traffic shall include profits derived from the rental on a bareboat basis of ships or aircraft when used in international traffic, where profits from such rental are incidental to the profits referred to in paragraph (a).

3. The provisions of paragraph (a) shall apply to profits derived from the participation in a pool, a joint business or international operating.

Article 9
Associated Enterprises

1. Any projects are considered joint ventures in any of the following two cases:

   1. an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State.

   2. the same persons participate directly or indirectly in the management, control or capital of an enterprise of the Contracting State and an enterprise of the other Contracting State. And if, in either of the aforementioned cases, conditions are laid down or delegated to the two enterprises in connection with their commercial or financial relations that differ from the conditions that would be established between two independent enterprises, then any profits which one of the two enterprises would have realized, but did not achieve because of those conditions, may be included in the profits of that enterprise and subject to taxed accordingly.

2. If either Contracting State includes the profits of an enterprise belonging to them, the profits of an enterprise belonging to the other Contracting State on which tax was collected and that State collected the tax accordingly, and those profits so included would have been realized by the enterprise of the first-mentioned State if such The conditions laid down between the two enterprises are the same conditions which would have been made between two independent enterprises. Accordingly, that other Contracting State shall make an appropriate adjustment to the amount of tax collected on those profits. The competent authorities of the two Contracting States shall conduct the necessary consultations between them - if necessary - regarding such amendment, taking into account the provisions of this Agreement.

Article 10
Dividends

1. Dividends paid by a company, which is a resident of a Contracting State to a resident of the other Contracting State, may be taxed in that other State.

2. However, such-dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State the tax so charged shall not exceed 5% of the gross amount of the dividends. This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term "dividends" as used in this Article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from other rights which is subjected to the same taxation. treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs (a) and (b) of this article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated. therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11
Income from Debt Claims

1. Income from.debt-claims arising in a Contracting-State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such income from recovered debts shall be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed 5% of the gross amount of the income.

3. Subject to the provisions of paragraphs (a) and (b), income from recovered debts paid by a company which is a resident of a Contracting State shall be exempt from tax in the said State if the beneficial owner is a government or local authority of the other Contracting State, a central bank or any other governmental or financial institution stipulated and agreed upon in the memorandums exchanged between the competent authorities between the two Contracting States.

4. The terms "income from debt claims" or "income" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities. and income from bonds or debentures, including bonds and sukuk. Provided that the fines resulting from non-payment are not considered income resulting from recovered debts in accordance with this article.

5. The provisions of paragraphs (a) and (b) shall not apply if the beneficial owner of the income from the recovered debts is a resident of a Contracting State and carries on business in the other Contracting State in which the income from the recovered debts arose through a permanent establishment situated therein, and the recovered debts from which the income arises is effectively connected with that permanent establishment. In such a case, the provisions of Article 7 shall apply.

6. Income arising from recovered debts is considered to have originated in a Contracting State when the motivation for it is the state itself, one of its local authorities, or a resident of that state. Where the person liable for the debts recovered, whether he is a resident of one of the Contracting Parties or not, has a permanent establishment to which the debt from which the income from the recovered debts has been paid is attributable and that income is borne by that establishment, then the income from the recovered debts shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the income, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, subject to the other provisions of this Convention.

Article 12
Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 5% of the gross amount of the royalties.

3. The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work, including cinematography films and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or process or for the use of, or the right to use industrial, commercial or scientific equipment, or transport vehicles or for information concerning industrial, commercial or scientific experience.

4. The provisions of paragraphs (a) and (b) of this article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last- mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 13
Gains from the Alienation of Property

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 situated in the other Contracting State may be taxed in that other State.

2. Profits from any disposal of movable property which are part of the funds used in the activity of a permanent establishment which an enterprise of one of the Contracting States has in the other Contracting State, including profits resulting from the disposal of that permanent establishment (alone or together with the enterprise) may be taxed in that other Contracting State.

3. Profits derived by an enterprise of a Contracting State as a result of the operation of any ships or aircraft in international traffic or through the disposal of private movable property shall be taxable only in that Contracting State in which the place of effective management of that enterprise is located.

4. Profits resulting from the disposal of the shares in the Company's Capital, whose funds consist of more than 50% of real property in one of the two Contracting States shall be taxable in that Contracting State in which such property is located.

5. Profits from the disposition of any capital other than those referred to in paragraph (d) may be subject to tax in the Contracting State in which the resident director owns at least 25% of the Company's Capital.

6. Profits from the disposition of any capital other than that referred to in paragraphs (a), (b), (c), (d), and (e) may be subject to tax in the Contracting State in which the director is resident.

Article 14
Dependent Personal Services

1. Subject to the provisions of Articles 15 and 17 and 18, salaries, wages and other similar remuneration derived by a-resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph (a) of this article, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned. State if: -

   1. the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any of twelve months period.

   2. the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State.

   3. the remuneration is not borne by a permanent establishment, which the employer has in the other State.

3. The remuneration paid to a teacher or researcher who was directly resident in one of the Contracting States prior to his visit to the other Contracting State, and whose presence in the other Contracting State is solely for the purpose of teaching or engaging in research, such remuneration paid to him as a result of carrying out these activities shall be taxable only in the other Contracting State.

4. The provisions of this paragraph shall apply to periods not exceeding (24) months from the date of arrival of the teacher or researcher to the other Contracting State for the purpose of teaching or research.

5. Notwithstanding the preceding provisions of this Article, remuneration. derived by an enterprise of a Contracting State in respect of an employment exercised aboard a ship or aircraft operated in international traffic may be taxed in that State.

6. Ground staff appointed from the head office of a national air carrier of a Contracting State to the other Contracting State shall be exempted from taxes levied on their remuneration in that other Contracting State.

Article 15
Director's Fees

Director's fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 16
Artistes and Sportsmen

1. Notwithstanding the provisions of Articles 7 and 14, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artist, or a musician, or as a sportsman from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

Article 17
Pensions

1. Subject to the provisions of paragraph (b) of Article 18, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph (a), payments received by an individual being a resident of a Contracting State under the social security legislation of the other Contracting State shall be taxable only in that state.

Article 18
Government Service

1. 1. Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting-State to an individual in respect of services rendered to that State shall be taxable only in that State.

   2. However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered. in that State and the individual is a resident of that State who:

      • is a national of that State.

      • did not become a resident of that State solely for the purpose of rendering the services.

2. 1. Any pension paid by, or out of funds created by a Contracting State to an individual in respect of services rendered to that State shall be taxable only in that State.

   2. However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

3. The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages and other similar remuneration and pensions in respect of services rendered. in connection with a business carried on by a Contracting State.

Article 19
Students

Payments which a student or a business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State-solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

Article 20
Other Income

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

2. The provisions of paragraph (a) shall not apply to income, other than income from immovable property as defined in paragraph (b) of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Article 21
Property Tax

1. Property represented by immovable property, referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State shall be taxable only in that other State.

2. Property represented by movable property forming part of the business. property of a permanent establishment, which an enterprise of a Contracting State has in the other Contracting State, may be taxed in that other State.

3. Property represented by ships and aircraft owned by a resident of a Contracting State and operated in international traffic, and by movable. property pertaining to the operation of such ships and aircraft shall be taxable only in that Contracting State.

4. All other elements of property of a resident of a Contracting State shall be taxable only in that State.

Article 22
Elimination of Double Taxation

1. In the case of Belarus, double taxation shall be eliminated as follows: If a person who is a resident of Belarus receives income or acquires funds which, according to the provisions of this Agreement, may be subject to tax in Bahrain, the Republic of Belarus shall allow:

   1. as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Bahrain.

   2. Deducting an amount from the tax imposed on the immovable property of that resident equal to the tax on the immovable property paid in Bahrain.

2. In the case of Bahrain, double taxation shall be eliminated as follows: Where a resident of Bahrain derives income or owns property, which, in accordance with the provisions of this Convention, may be taxed in Belarus, Bahrain shall allow:

   1. as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Belarus.

   2. Deducting an amount from the tax imposed on the immovable property of that resident equal to the tax on the immovable property paid in Belarus.

3. Such deduction in either case shall not, however, exceed that part of the income tax or property tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the property which may be taxed in Bahrain or Belarus.

Article 23
Non-Discrimination

1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same. circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1 of this convention, also apply to persons who are not residents of one or both of the Contracting States.

2. The taxation on a permanent establishment, which an enterprise of Contracting State has in the other Contracting State, shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, relieves and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

3. Except where the provisions of paragraph (a) of Article 9, paragraph (g) of Article 11, or paragraph (f) of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first- mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable property of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State.

4. Enterprises of a Contracting State, the property of which is wholly or partly owned or controlled, directly or indirectly, by one or more. residents of the other Contracting State, shall not be subjected in the first- mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected. requirements to which other similar enterprises of the first-mentioned. State are or may be subjected.

5. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kind and description.

Article 24
Mutual Agreement Procedure

1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph (a) of Article 23, to that of the Contracting State of which he is a national. The case must be presented within 3 years. from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation, which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

3. The competent authorities of the two Contracting States shall endeavour to settle any disputes arising from the mutual interpretation or application of the provisions of this Agreement and shall consult with each other to avoid double taxation in the cases mentioned in this Agreement.

4. The competent authorities of the two Contracting States shall contact each other directly for the purpose of reaching an agreement under the above-mentioned paragraphs. When it becomes clear the importance of reaching an agreement to exchange opinions verbally, this exchange must take place by a committee consisting of representatives of the competent authorities in the two contracting states.

Article 25
Exchange of Information

1. The competent authorities of the Contracting States shall exchange such information as is necessary for implementation of the provisions of this Convention or for the enforcement of the taxes provided for in Article 2 of this Convention and such other information as may be necessary to combat tax evasion. Any such information received by a Contracting State shall be treated as confidential and shall not be disclosed except to the authorities of the Contracting State involved in the assessment or collection of taxes covered by this Convention or for determination of any disputes relating thereto.

2. In no case shall the provisions of this article be construed so as to impose on a Contracting State the obligation: -

   1. to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State.

   2. to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State.

   3. to supply information, which would disclose any business, industrial, commercial of professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

Article 26
Members of Diplomatic Missions and Consular Posts

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 27
Miscellaneous Provisions

Nothing in this Convention shall prevent the application of a more favourable tax treatment, which might be extended, to foreign public investments under the tax legislation of either Contracting State.

Article 28
Entry into Force

Each of the two Contracting States shall notify the other State through diplomatic channels of the completion of the legal procedures required in its own laws to start the implementation of this Agreement. The implementation of this Agreement shall commence from the date of receipt of the last notice, and its provisions shall apply in both countries as follows:

1. in respect of taxes withheld at source, on income-derived or credited on or after the first day of January in the calendar year next following the year in which the Convention enters into force.

2. in respect of other taxes imposed on income for any taxable period (tax years) beginning on or after the first day of January following the calendar year following the date this Agreement enters into force.

Article 29
Termination

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving written notice of termination at least six months before the end of any calendar year following after the period of five years from the date on which the Convention enters into force. In such event, the Convention shall cease to have effect: -

1. in respect of taxes withheld at source, on income derived or credited on or after the first day of January in the calendar year next following the year in which the notice of termination is given.

2. in respect of other taxes, for taxes chargeable for any tax period. beginning on or after the first day of January in the calendar year next following the year in which the notice of termination is given.

IN WITNESS WHEREOF the undersigned, being duly authorised thereto, have signed this Convention.

Done on 27/10/2002 in two true copies, in the Arabic, Russian and English languages. All texts are equally authentic. In case of difference in interpretation, the English text is to be referred to.