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Eesti Vabariigi ja Islandi Vabariigi vaheline tulu- ja kapitalimaksuga topelt... Leht 1 / 23

Vljaandja: RiigikoguAkti liik: vlislepingTeksti liik: algtekstJustumise kp: 10.11.1995Avaldamismrge: RT II 1994, 30, 131

Eesti Vabariigi ja Islandi Vabariigi vaheline tulu-ja kapitalimaksuga topeltmaksustamise vltimise

ning maksudest hoidumise tkestamise leping

Vastu vetud 16.06.1994

() 28.12.2008

Lepingu ratifitseerimise seadus

Vlisministeeriumi teadaanne vlislepingu justumise kohta

Mitteametlik tlge

Eesti Vabariigi Valitsus ja Islandi Vabariigi Valitsus,

soovides slmida lepingut tulu- ja kapitalimaksudega topeltmaksustamise vltimiseks ning maksudest hoidumisetkestamiseks,

leppisid kokku jrgnevas:

1. artikkel. Isikuline ulatus

Kesolev leping kehtib isikute suhtes, kes on he vi mlema lepinguosalise riigi residendid.

2. artikkel. Lepingualused maksud

(1) Kehtestatud maksud, mille suhtes kesolevat lepingut rakendatakse, on:a) Eestis:(i) tulumaks (edaspidi Eesti maks);b) Islandil:(i) riiklik tulumaks (tekjuskattur til rkisins);(ii) riiklik kapitalimaks (eignarskattur til rkisins);(iii) kohaliku omavalitsuse tulumaks (tekjutsvar til sveitarflaga);(edaspidi Islandi maks).

(2) Kui prast lepingu allakirjutamise kuupeva kehtestatakse lepinguosalises riigis uus tulu- vi kapitalimaks,siis kehtib leping ka sellise maksu suhtes. Lepinguosaliste riikide kompetentsed ametivimud otsustavadvastastikuse kokkuleppe teel, kas maks, mis on kehtestatud kskik kummas lepinguosalises riigis, on

niisugune, mille suhtes leping vastavalt eelmisele lausele peaks kehtima.(3) Leping kehtib ka niisuguste maksude kohta, mis on samased vi olemuslikult sarnased nende maksudega,mis on loetletud vi millele on viidatud 1. ja 2. likes ning mis on kehtestatud prast lepingu allakirjutamistlisaks olemasolevatele maksudele vi nende asemel, mille suhtes leping nende ligete tttu kehtib.Lepinguosaliste riikide kompetentsed ametivimud teatavad ksteisele kigist olulistest muudatustest, mis ontehtud nende vastavates maksuseadustes.

3. artikkel. Phimisted

(1) Kesoleva lepingu mttes, kui kontekst ei nua teisiti:a) miste Eesti thistab Eesti Vabariiki ja, kasutatuna geograafilises mttes, thistab Eesti territooriumi jamuid Eesti territoriaalvetega klgnevaid alasid, kus Eesti vib Eesti seaduste alusel ja koosklas rahvusvaheliseigusega kasutada igusi merephja, maapue ning neis leiduvate loodusvarade suhtes;b) miste Island thistab Islandi Vabariiki ja, kasutatuna geograafilises mttes, thistab Islandi Vabariigi

territooriumi ja muid Islandi territoriaalvetega klgnevaid alasid, kus Islandil on Islandi seaduste alusel ja
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e) ritegevuse kindla asukoha pidamine ainult ettevtte toimimiseks vajaliku, mne muu ettevalmistava viabistava iseloomuga tegevuse eesmrgil;f) ritegevuse kindla asukoha pidamine ainult seoses punktides akuni eloetletud tegevuste kombinatsiooniga,eeldades, et kogu kindla asukoha ritegevus, mis sellest kombinatsioonist tuleneb, on ettevalmistava vi abistavaiseloomuga.

(5) Olenemata 1. ja 2. like stetest, kui isik, kes ei ole sltumatu esindaja staatuses vastavalt 6. likele, tegutsebettevtte nimel ja kes on volitatud slmima, ja tegelikult slmib, lepinguosalises riigis ettevtte nimel lepinguid,siis loetakse sel ettevttel olevat alaline tegevuskoht selles riigis kigi sellise isiku poolt ettevtte jaokssooritatud tegevuste suhtes juhul, kui sellise isiku tegevus ei vasta 4. likes loetletud tegevustele, mis oleksidtoimunud ritegevuse kindla asukoha kaudu ja mis ei muudaks seda ritegevuse kindlat asukohta vastavalt sellelike stetele alaliseks tegevuskohaks.

(6) Ettevttel ei loeta olevat lepinguosalises riigis alalist tegevuskohta ainult selles riigis maakleri, tavalisevahendaja vi mne teise sltumatu esindaja kaudu toimuva ritegevuse suhtes eeldusel, et sellised isikudtegutsevad ritegevuseks ettenhtud korras. Seejuures, kui sellise esindaja tegevus toimub tielikult vi peaaegutielikult selle ettevtte nimel, siis ei loeta teda kesoleva like mttes sltumatuks esindajaks.

(7) Asjaolu, et kompanii, kes on lepinguosalise riigi resident, kontrollib kompaniid vi on kontrollitavkompanii poolt, kes on teise lepinguosalise riigi resident, vi kelle ritegevus toimub selles teises riigis (kasalalise tegevuskoha kaudu vi mnel muul viisil), ei muuda kumbagi kompaniid ksteise suhtes alaliseks

tegevuskohaks.6. artikkel. Kinnisvaratulu

(1) Lepinguosalise riigi residendi poolt teises lepinguosalises riigis olevast kinnisvarast saadud tulu (sealhulgastulu pllumajandusest ja metsandusest), vidakse maksustada selles teises riigis.

(2) Mistel kinnisvara on thendus, mis tal on selle lepinguosalise riigi seaduse alusel, kus mainitud varategelikult asub. Miste hlmab igal juhul kinnisvara praldisi, pllumajanduses ja metsanduses kasutatavatsisseseadet ning eluskarja, maaomandit ksitleva ldise seadusega stestatud igusi, ehitisi, optsioone jasarnaseid kinnisvaraga seotud igusi, kinnisvara kasutamisigusi ja igusi muutuvatele vi psivatelevljamaksetele t vi iguse eest tle maavarade leiukohtade, allikate ja teiste loodusvaradega. Laevu,kaatreid ja husidukeid ei ksitleta kinnisvarana.

(3) 1. like stted kehtivad kinnisvara otsesest kasutamisest, rendile andmisest vi mnel muul viisil kinnisvara

kasutamisest saadud tulu, aga ka kinnisvara vrandamisest saadud tulu kohta.(4) Kui aktsiate vi muude korporatiivsete iguste omamine kompaniis annab selliste aktsiate vikorporatiivsete iguste omanikule iguse kompaniile kuuluvale kinnisvarale, siis vidakse kinnisvara otsesestkasutamisest, rendile andmisest vi mnel muul viisil kinnisvara kasutamisest saadud tulu maksustada selleslepinguosalises riigis, kus kinnisvara asub.

(5) 1. ja 3. like stted kehtivad ka ettevtte kinnisvarast ja eraviisilises teenistuses kasutatavast kinnisvarastsaadud tulu kohta.

7. artikkel. rikasumid

(1) Lepinguosalise riigi ettevtte kasumid maksustatakse ainult selles riigis, kui ettevtte ritegevus ei toimuteises lepinguosalises riigis asuva alalise tegevuskoha kaudu. Kui ettevtte ritegevus toimub eelpool mainitudviisil, siis vidakse ettevtte kasumeid maksustada teises riigis, kuid ainult seda osa kasumitest, mis kuulub:

a) sellele alalisele tegevuskohale; vib) kauba mgile selles teises riigis, mis on samane vi sarnane alalise tegevuskoha kaudu toimuva mgiga;vic) teistele selles teises riigis toimunud ritegevustele, mis on samased vi sarnased alalise tegevuskoha kaudutoimuvaga.

Punktide bja cstted ei kehti, kui ettevte nitab, et sellised mgid vi tegevused ei oleks saanud phjendatulttoimuda alalise tegevuskoha kaudu.

(2) Olenevalt 3. like stetest, kui lepinguosalise riigi ettevtte ritegevus toimub teises lepinguosalises riigisasuva alalise tegevuskoha kaudu, siis loetakse kummaski lepinguosalises riigis sellele alalisele tegevuskohalekuuluvaks kasumid, mis tegevuskoht oleks vinud saada iseseisva ettevttena, kes osaleb samade vi sarnastetingimuste alusel samadel vi sarnastel tegevusaladel ja on tiesti iseseisev oma suhetes ettevttega, kelle alalinetegevuskoht ta on.


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(3) Alalise tegevuskoha kasumite mramisel lubatakse kuludena maha arvata ettevtte kulusid, mis on tekkinudalalise tegevuskoha tttu, sealhulgas juhtimise ja administreerimisega tekkinud kulusid, seda kas riigis, kusalaline tegevuskoht asub, vi mujal.

(4) Niivrd kui alalisele tegevuskohale kuuluvaid kasumeid mratakse lepinguosalise riigi poolt jrgitavatava kohaselt ettevtte kogukasumite jaotamise alusel tema erinevate osade vahel, ei takista 2. like kski stemramast maksustatavaid kasumeid selles lepinguosalises riigis kasutatava jaotusmeetodi jrgi; seejuures peabkasutatav jaotusmeetod olema selline, et tulemus oleks koosklas kesoleva artikli phimtetega.

(5) Kasumeid ei loeta alalisele tegevuskohale kuuluvaks ainuksi phjusel, et see alaline tegevuskoht ostabettevtte jaoks kaupu.

(6) Eelnevate ligete mttes mratakse alalisele tegevuskohale kuuluvad kasumid igal aastal sama meetodialusel, vlja arvatud juhul, kui on olemas sobiv ja kllaldane phjus vastupidiseks.

(7) Kui kasumid hlmavad tululiike, mida ksitletakse eraldi kesoleva lepingu teistes artiklites, siisrakendatakse nende artiklite stteid sltumata kesoleva artikli stetest.

8. artikkel. Mere- ja hutransport

(1) Lepinguosalise riigi ettevtte rahvusvahelisest mere- vi hutranspordist saadud kasumid maksustatakseainult selles riigis.

(2) 1. like stted kehtivad ka kasumite puhul, mis on saadud osalusest puulis, hisritegevuses virahvusvahelises transpordiorganisatsioonis.

9. artikkel. Assotsieerunud ettevtted

(1) Kuia) lepinguosalise riigi ettevte osaleb otseselt vi kaudselt teise lepinguosalise riigi ettevtte juhtimises,kontrollimises vi kapitalis, vi kuib) samad isikud osalevad otseselt vi kaudselt lepinguosalise riigi ja teise lepinguosalise riigi ettevttejuhtimises, kontrollimises vi kapitalis,ja kui kummalgi juhul mratakse vi lepitakse kahe ettevtte vahelistes kaubanduslikes vi finantssuheteskokku iseseisvate ettevtete vahelistest tingimustest erinevate tingimuste suhtes, siis vidakse lugeda kasum,mis oleks ilma nende tingimusteta lisandunud hele nendest ettevtetest, kuid mis nende tingimuste tttu eilisandunud, selle ettevtte kasumi hulka ja vastavalt ka maksustada.

(2) Kui lepinguosaline riik loeb selle riigi ettevtte kasumi hulka ja maksustab vastavalt kasumi, milleosas teise lepinguosalise riigi ettevte on selles teises riigis maksustatud, ja kui selline kasum on esimesenamainitud riigi arvates kasum, mis oleks lisandunud esimesena mainitud riigi ettevttele, kui nende kaheettevtte vahelised tingimused oleksid olnud sarnased iseseisvate ettevtete vaheliste tingimustega, siisreguleerib teine riik vastavalt selle kasumi maksustamise ulatust, kui ta peab seda reguleerimist igustatuks.Sellise reguleerimise ulatuse mramisel arvestatakse kesoleva lepingu teisi stteid ja lepinguosaliste riikidekompetentsed ametivimud konsulteerivad vajaduse korral teineteisega.

10. artikkel. Dividendid

(1) Dividende, mida kompanii, kes on lepinguosalise riigi resident, maksab teise lepinguosalise riigi residendile,vidakse maksustada selles teises riigis.

(2) Seejuures vidakse neid dividende maksustada ka selles lepinguosalises riigis ja vastavalt selle riigiseadustele, kus dividende maksev kompanii on resident, aga kui dividendide saaja on dividendide kasusaavomanik, siis sel teel kinnipeetud maks ei leta:a) 5 protsenti dividendide brutosummast, kui kasusaav omanik on kompanii (kes ei ole majandushing), kellele

otseselt kuulub vhemalt 25 protsenti dividende maksva kompanii kapitalist;b) 15 protsenti dividendide brutosummast kigil teistel juhtudel.

Lepinguosaliste riikide kompetentsed ametivimud vivad vastastikuse kokkuleppe teel kindlaks mrata nendepiirangute rakendamise korra.

Kesoleva like stted ei mjuta kompanii nende kasumite maksustamist, millest dividende makstakse.

(3) Olenemata 2. like punkti astetest vidakse Islandi residendist kompanii poolt Eesti residendist kompaniilemakstavaid dividende maksustada Islandil maksumraga, mis ei leta 15 protsenti nendest dividendidest, midakoosklas Islandi seadustega on dividende maksval Islandi kompaniil lubatud kasumist maha arvata vi edasikanda kui ritegevuse kahjumit.

(4) Kesolevas artiklis kasutatuna thistab miste dividendid tulu aktsiatest vi muudest kasumis osalevatestigustest, mis ei ole vlanuded, ja tulu teistest korporatiivsetest igustest, mida selle riigi seaduste jrgi, kus

dividende jaotav kompanii on resident, ksitletakse maksustamisel tuluna aktsiatest.


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(7) Kui intresside maksja ja kasusaava omaniku, vi nende mlema ja mne teise isiku vaheliste erisuhete tttu,vastava vlanude eest makstavate intresside summa letab summa, mis oleks maksja ja kasusaava omanikuvahel kokku lepitud selliste suhete puudumisel, siis kehtivad kesoleva artikli stted ainult viimati mainitudsummale. Sel juhul kuulub maksete liigosa maksustamisele vastavalt kummagi lepinguosalise riigi seadustele,arvestades kesoleva lepingu teisi stteid.

12. artikkel. Autoritasu

(1) Autoritasu (kasutusmaks), mis tekib lepinguosalises riigis ja mida makstakse teise lepinguosalise riigiresidendile, vidakse maksustada selles teises riigis.

(2) Seejuures vidakse selline autoritasu maksustada ka selles lepinguosalises riigis ja vastavalt selle riigiseadustele, kus see autoritasu tekib, aga kui saaja on autoritasu kasusaav omanik, siis ei leta autoritasult vetavmaks:a) 5 protsenti autoritasu brutosummast, mida makstakse tstusliku, kaubandusliku vi teadusalase sisseseadekasutamise eest;b) 10 protsenti autoritasu brutosummast kigil lejnud juhtudel.

Lepinguosaliste riikide kompetentsed ametivimud vivad vastastikuse kokkuleppe teel kindlaks mrata nendepiirangute rakendamise korra.

(3) Kesolevas artiklis kasutatuna thistab miste autoritasu igat liiki makseid, mida saadakse tasunakasutamise eest vi iguse eest kasutada kirjanduslike, kunstiliste vi teaduslike tde, sealhulgas kinofilmideja raadio- vi televisioonisaadete salvestiste autoriigusi, patente, kaubamrke, disaine vi mudeleid, plaane,salajasi valemeid vi protsesse, vi kasutamise eest vi iguse eest kasutada tstuslikku, kaubanduslikku viteadusalast sisseseadet, vi tstuslikku, kaubanduslikku vi teadusalast kogemust puudutavat informatsiooni.

(4) 1. ja 2. like stted ei kehti, kui autoritasu kasusaava omaniku, kes on lepinguosalise riigi resident,ritegevus toimub teises lepinguosalises riigis, kus autoritasu tekib, seal asuva alalise tegevuskoha kaudu, vikui ta tegutseb teises riigis eraviisiliselt seal asuva kindla asukoha kaudu, ja igus vi vara, mille eest autoritasumakstakse, on tegelikult seotud sellise alalise tegevuskoha vi kindla asukohaga. Sel juhul kehtivad vastavaltkas 7. artikli vi 14. artikli stted.

(5) Autoritasu loetakse tekkinuks lepinguosalises riigis, kui maksja on selle riigi resident. Ent kui autoritasumaksval isikul, kes on vi ei ole lepinguosalise riigi resident, on lepinguosalises riigis alaline tegevuskohtvi kindel asukoht, millega seoses tekkis kohustus maksta autoritasu, ning see autoritasu on tekkinud alalisetegevuskoha vi kindla asukoha poolt, siis loetakse seda autoritasu tekkinuks riigis, kus asub alaline tegevuskohtvi kindel asukoht.

(6) Kui autoritasu maksja ja kasusaava omaniku, vi nende mlema ja mne teise isiku vaheliste erisuhete tttukasutamise, iguse vi informatsiooni eest makstava autoritasu summa letab summa, mis oleks maksja ningkasusaava omaniku vahel kokku lepitud selliste suhete puudumisel, siis kehtivad kesoleva artikli stted ainultviimati mainitud summale. Sel juhul kuulub maksete liigosa maksustamisele vastavalt kummagi lepinguosaliseriigi seadustele, arvestades kesoleva lepingu teisi stteid.

(7) Kui Eesti nustub mnes prast kesoleva lepingu allakirjutamise kuupeva kolmanda riigiga, kes onkesoleva lepingu allakirjutamise kuupeval Majandusliku Koost ja Arengu Organisatsiooni (OECD) liige,slmitud topeltmaksustamise vltimise lepingus vlja jtma kesoleva artikli 3. likes toodud definitsioonistmingid igused vi varad, vi vabastama Eestis tekkiva autoritasu Eesti autoritasu maksust vi vhendama2. likes nimetatud kinnipeetava maksu mrasid, siis kehtib selline definitsioon vi vabastus vi madalammaksumr automaatselt vastavalt 3. likes vi 2. likes mratule.

13. artikkel. Kapitali juurdekasv

(1) Lepinguosalise riigi residendi poolt saadud kapitali juurdekasvu 6. artiklis ksitletud ja teises lepinguosalises

riigis paikneva kinnisvara vrandamisel vi aktsiate vrandamisel kompaniis, mille vara koosneb philiseltkinnisvarast, vidakse maksustada selles teises riigis.

(2) Kapitali juurdekasvu vallasvara vrandamisel, mis moodustab osa lepinguosalise riigi ettevtte teiseslepinguosalises riigis asuva alalise tegevuskoha ritegevuses kasutatavast varast vi lepinguosalise riigiresidendi teises lepinguosalises riigis toimuvaks eraviisiliseks teenistuseks vajaliku kindla asukoha vallasvarast,sealhulgas kapitali juurdekasvu sellise alalise tegevuskoha (eraldi vi koos kogu ettevttega) vi kindla asukohavrandamisel, vidakse maksustada selles teises riigis.

(3) Kapitali juurdekasvu, mis on saadud lepinguosalise riigi ettevtte poolt rahvusvahelises transpordiskasutatavate mere- vi husidukite vi selliste mere- vi husidukite ekspluateerimiseks vajaliku vallasvaravrandamisel, maksustatakse ainult selles riigis.

(4) Kapitali juurdekasvu iga muu vara vrandamisel, mida ei ole ksitletud kesoleva artikli eelnevatesligetes, maksustatakse ainult selles lepinguosalises riigis, kus vrandaja on resident.

14. artikkel. Eraviisiline teenistus


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(1) Tulu, mida lepinguosalise riigi residendist ksikisik saab kutsealasest teenistusest vi muust eraviisiliseiseloomuga tegevusest, maksustatakse ainult selles riigis, kui tal ei ole teises lepinguosalises riigis omategevuseks pidevalt vajalikku kindlat asukohta. Kui tal on selline kindel asukoht, siis vidakse tulumaksustada teises riigis, kuid ainult selles osas, mis on omistatav sellele kindlale asukohale. Selles mttes,kui lepinguosalise riigi residendist ksikisik viibib teises lepinguosalises riigis perioodi vi mitme perioodijooksul kokku rohkem kui 183 peva mne kaheteistkmnekuulise perioodi vltel, mis algab vi lpeb vastavalmaksuaastal, siis loetakse tal teises lepinguosalises riigis olevat tema tegevuseks pidevalt vajalik kindel asukohtja tema teises riigis toimunud lalpool mainitud tegevusest saadud tulu omistatakse sellele kindlale asukohale.

(2) Miste kutsealane teenistus hlmab eriti eraviisilist teadus-, kirjandus-, kunsti-, kasvatus- vi haridusalasttegevust, aga ka arstide, juristide, inseneride, arhitektide, hambaarstide ja raamatupidajate eraviisilist tegevust.

15. artikkel. Palgateenistus

(1) Olenevalt 16., 18. ja 19. artikli stetest maksustatakse lepinguosalise riigi residendi poolt saadud palk,ttasu ning muud sarnased teenistuse eest saadud tasud ainult selles riigis, kui teenistus ei ole toimunud teiseslepinguosalises riigis. Vastasel juhul vidakse teises riigis teenistuse eest saadud tasu ka maksustada selles teisesriigis.

(2) Olenemata 1. like stetest maksustatakse lepinguosalise riigi residendi poolt teises lepinguosalises riigisteenistuse eest saadud tasu ainult esimesena mainitud riigis, kui:

a) tasu saaja viibib teises riigis perioodi vi mitme perioodi jooksul, mis ei leta kokku 183 peva mnekaheteistkmnekuulise perioodi vltel, mis algab vi lpeb vastaval rahandusaastal, jab) tasu maksab tandja vi tasu makstakse tandja nimel, kes ei ole selle teise riigi resident, jac) tasuga ei koormata alalist tegevuskohta vi kindlat asukohta, mis tandjal on teises riigis.

(3) Olenemata kesoleva artikli eelnevatest stetest vidakse lepinguosalise riigi residendi poolt rahvusvahelisestranspordis kasutatavatel mere- vi husidukitel toimunud teenistuse eest saadud tasu maksustada selles riigis.

16. artikkel. Juhatuse liikmete ttasud

Juhatuse liikmete ttasud ja muud sarnased rahasummad, mida lepinguosalise riigi resident saab teiselepinguosalise riigi residendist kompanii juhatuse vi muu sarnase organi liikmena, vidakse maksustada sellesteises riigis.

17. artikkel. Kunstnikud ja sportlased

(1) Olenemata 14. ja 15. artikli stetest vidakse lepinguosalise riigi residendi teatris, kinos, raadios vitelevisioonis kunstnikuna, vi muusiku vi sportlasena teises lepinguosalises riigis toimuvast isiklikusttegevusest saadud tulu maksustada selles teises riigis.

(2) Kui kunstniku vi sportlase isiklikust tegevusest tekkinud tulu ei saa kunstnik vi sportlane, vaid mniteine isik, siis vidakse seda tulu, olenemata 7., 14. ja 15. artikli stetest, maksustada lepinguosalises riigis, kuskunstniku vi sportlase tegevus on toimunud.

(3) 1. ja 2. like stted ei kehti tulu suhtes, mida saadakse kunstniku vi sportlase poolt lepinguosalises riigistoimuvast tegevusest, kui seda finantseeritakse tielikult vi philiselt teise lepinguosalise riigi riiklikestfondidest, riikliku allksuse vi kohaliku omavalitsuse poolt. Sel juhul maksustatakse tulu vastavalt 7., 14. vi15. artikli stetele.

18. artikkel. Pensionid ja sarnased rahasummad

(1) Olenevalt 19. artikli 2. like stetest maksustatakse lepinguosalise riigi residendile eelnenud teenistuse eestmakstavad pensionid ja muud sarnased tasud ainult selles riigis.

(2) Olenemata 1. like stetest ja 19. artikli 2. like stetest maksustatakse makstavad pensionid ja muudhved, kas perioodilised vi hekordsed summad, mida makstakse lepinguosalise riigi sotsiaalkindlustuseseadusandluse alusel vi mne muu sotsiaalse heaolu tagamiseks lepinguosalise riigi poolt kehtestatud riiklikukorra alusel, ainult selles riigis.

19. artikkel. Riigiteenistus

(1) a) Tasu, mis ei ole pension, ja mida lepinguosalise riigi, riikliku allksuse vi kohaliku omavalitsuse vistatuudiga mratletud ksuse poolt makstakse fsilisele isikule selle riigi, allksuse, omavalitsuse vi ksusepalgateenistuses oleku eest, maksustatakse ainult selles riigis.b) Seejuures maksustatakse seda tasu ainult teises lepinguosalises riigis, kui teenistus on toimunud selles riigis ja

kui fsiline isik on selle riigi resident, kes:(i) on antud riigi kodanik; vi


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(ii) kellest ei saanud antud riigi residenti ainult teenistuse eesmrgil.

(2) a) Pension, mida lepinguosalise riigi, riikliku allksuse vi kohaliku omavalitsuse vi statuudiga mratletudksuse poolt vi nende poolt loodud fondidest makstakse fsilisele isikule selle riigi, allksuse, omavalitsusevi ksuse palgateenistuses oleku eest, maksustatakse ainult selles riigis.b) Seejuures maksustatakse seda pensioni ainult teises lepinguosalises riigis, kui fsiline isik on selle riigiresident ja kodanik.

(3) Tasude ja pensionide suhtes, mis on saadud lepinguosalise riigi, riikliku allksuse vi kohaliku omavalitsusevi statuudiga mratletud ksuse ritegevusega seotud teenistuse eest, kehtivad 15., 16. ja 18. artikli stted.

20. artikkel. lipilased

lipilase vi praktikandi, kes on vi oli vahetult enne lepinguosalises riigis viibimist teise lepinguosalise riigiresident ja kes viibib esimesena mainitud riigis ainult pingute vi praktiseerimise eesmrgil, lalpidamiseks,pinguteks vi praktiseerimiseks saadud vljamakseid ei maksustata selles riigis tingimusel, et needvljamaksed prinevad vljaspool seda riiki asuvatest allikatest.

21. artikkel. Muu tulu

(1) Lepinguosalise riigi residendi poolt saadud tululiike, mida kesoleva lepingu eelmistes artiklites eiole ksitletud, maksustatakse ainult selles riigis. Seejuures vidakse selliseid tululiike, mis tekivad teiseslepinguosalises riigis, maksustada ka selles teises riigis.

(2) 1. like stted ei kehti tulule, mis ei ole 6. artikli 2. likes mratletud kinnisvaratulu, kui sellise tulu saaja,kes on lepinguosalise riigi resident, ritegevus toimub teises lepinguosalises riigis asuva alalise tegevuskohakaudu, vi kelle eraviisiline teenistus toimub teises lepinguosalises riigis asuva kindla asukoha kaudu, ja igusedvi vara, millega seoses tulu saadakse, on tegelikult seotud sellise alalise tegevuskoha vi kindla asukohaga. Seljuhul kehtivad vastavalt kas 7. artikli vi 14. artikli stted.

22. artikkel. Kapital

(1) Kapitali, mis koosneb lepinguosalise riigi residendile kuuluvast kinnisvarast vastavalt 6. artikli 2. likeleja mis asub teises lepinguosalises riigis, vi aktsiatest kompaniis, mille vara koosneb philiselt kinnisvarast,vidakse maksustada selles teises riigis.

(2) Kapitali, mis koosneb vallasvarast, mis moodustab osa lepinguosalise riigi ettevtte teises lepinguosalisesriigis asuva alalise tegevuskoha ritegevuse varast, vi lepinguosalise riigi teises lepinguosalises riigiseraviisiliselt tegutseva residendi kindla asukoha vallasvarast, vidakse maksustada selles teises riigis.

(3) Kapitali, mis koosneb lepinguosalise riigi ettevtte poolt rahvusvahelises transpordis kasutatavatest mere- jahusidukitest, ja selliste mere- ja husidukite ekspluateerimiseks vajalikust vallasvarast, maksustatakse ainultselles riigis.

(4) Lepinguosalise riigi residendi kapitali kiki muid koostisosi maksustatakse ainult selles riigis.

23. artikkel. Topeltmaksustamise vltimine

(1) Eestis vlditakse topeltmaksustamist jrgnevalt:a) Kui Eesti resident saab tulu vi omab kapitali, mida vastavalt kesolevale lepingule vidakse maksustadaIslandil, ja kui tema kodumaises seadusandluses puudub enamsoodustatud ksitlus, siis vimaldab Eesti:(i) mahaarvestuse selle residendi tulumaksust summas, mis vastab Islandil makstud tulumaksule;(ii) mahaarvestuse selle residendi kapitalimaksust summas, mis vastab Islandil makstud kapitalimaksule.Seejuures ei leta selline mahaarvestus kummalgi juhul seda osa Eesti tulu- vi kapitalimaksust, mis oliarvestatud enne mahaarvestuse tegemist vastavalt tulule vi kapitalile, mida vidakse maksustada Islandil.

b) Punkti amttes, kui Eesti residendist kompanii saab dividende Islandi residendist kompaniilt, kellehleiguslikest aktsiatest kuulub talle vhemalt 10 protsenti, siis ei hlma Islandil makstud maks mitte ainultdividendidelt makstud maksu, vaid ka maksu dividendide aluseks olevalt kasumiosalt.

(2) Islandil vlditakse topeltmaksustamist jrgnevalt:a) Kui Islandi resident saab tulu vi omab kapitali, mida koosklas kesoleva lepingu stetega vidaksemaksustada Eestis, vimaldab Island, olenevalt punktide bja cstetest, sellisele tulule vi kapitalilemaksuvabastuse.b) Kui Islandi resident saab tulu, mida koosklas:(i) 10. artikli 2. like punkti bstetega, vi(ii) 11. vi 12. artikli 2. like stetegavidakse maksustada Eestis, siis vimaldab Island mahaarvestuse selle residendi tulumaksust summas, misvastab Eestis makstud maksule. Seejuures ei leta selline mahaarvestus seda osa maksust, mis oli arvestatudenne mahaarvestuse tegemist Eestis saadud tulule.c) Kui koosklas mne lepingu sttega on Islandi residendi saadud tulu vi talle kuuluv kapital vabastatud

Islandi maksust, siis olenemata sellest vib Island vtta selle residendi lejnud tulu- vi kapitalimaksuarvestamisel arvesse vabastatud tulu vi kapitali.


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d) Punkti balapunkti istted kehtivad esimese 10 aasta jooksul lepingu justumisest. Kompetentsed ametivimudkonsulteerivad ksteisega otsustamaks selle aja pikendamise le. Iga taoline ajapikendus justub mratudajal ja vastavate muudatuste ning tingimustega, sealhulgas ka tingimustega lepingu lpetamise kohta, nii nagulepinguosaliste riikide vahel vidakse kokku leppida diplomaatiliste kanalite kaudu nootide vahetamise teel vimnel muul viisil vastavalt nende phiseaduslikule protseduurile. Kui koosklas kesoleva punktiga kaotabpunkti balapunkt ikehtivuse, siis asendatakse punkti balapunkt iijrgnevaga: (ii) 10., 11. vi 12. artikli 2. likestetega.

24. artikkel. Mittediskrimineerimine

(1) Lepinguosalise riigi kodanikke ei allutata teises lepinguosalises riigis maksustamisele vi sellegakaasnevatele nuetele, mis on erinevad vi koormavamad kui maksustamine vi sellega kaasnevad nuded,millele samades tingimustes alluvad vi alluksid selle teise riigi kodanikud, seda eriti residentsuse suhtes.Olenemata 1. artikli stetest kehtib kesolev ste ka isikute suhtes, kes ei ole he vi mlema lepinguosaliseriigi residendid.

(2) Kodakondsuseta isikuid, kes on lepinguosalise riigi residendid, ei allutata kummaski lepinguosalises riigismaksustamisele vi sellega kaasnevatele nuetele, mis on erinevad vi koormavamad kui maksustamine visellega kaasnevad nuded, millele samades tingimustes alluvad vi alluksid vastava riigi kodanikud, seda eritiresidentsuse suhtes.

(3) Lepinguosalise riigi ettevtte teises lepinguosalises riigis asuva alalise tegevuskoha maksustamine ei saateises riigis olla vhem soodus kui selle teise riigi sama tegevusega ettevtete maksustamine. Kesolevat stetei saa tlgendada kui lepinguosalise riigi kohustust vimaldada teise lepinguosalise riigi residendile isiklikkemaksusoodustusi, maksuvabastusi ja maksuvhendusi perekonnaseisu vi perekondlike kohustuste tttusarnaselt oma residentidega.

(4) Vlja arvatud juhtudel, kui kehtivad 9. artikli 1. like, 11. artikli 7. like vi 12. artikli 6. like stted,kuuluvad lepinguosalise riigi ettevtte poolt teise lepinguosalise riigi residendile makstavad intressid, autoritasuja teised vljamaksed selle ettevtte maksustatavate kasumite mramisel mahaarvestusele samadel tingimustel,kui neid oleks makstud esimesena mainitud riigi residendile. Sarnaselt alluvad esimese lepinguosalise riigiettevtte kik vlad teise lepinguosalise riigi residendile selle ettevtte maksustatava kapitali mramiselmahaarvestusele samadel tingimustel, kui neid oleks mratud esimesena mainitud riigi residendile.

(5) Lepinguosalise riigi ettevtteid, kelle kapitali kas osaliselt vi tielikult omatakse, vi otseselt vi kaudseltkontrollitakse teise lepinguosalise riigi he vi enama residendi poolt, ei allutata esimesena mainitud riigis

maksustamisele vi sellega kaasnevatele nuetele, mis on erinevad vi koormavamad kui maksustamine visellega kaasnevad nuded, millele alluvad vi alluksid esimesena mainitud riigi teised sarnased ettevtted.

(6) Olenemata 2. artikli stetest kehtivad kesoleva artikli stted igat liiki maksude suhtes.

25. artikkel. Vastastikuse kokkuleppe protseduur

(1) Kui isik arvab, et he vi mlema lepinguosalise riigi tegevus phjustab vi vib phjustada tema sellistmaksustamist, mis ei ole koosklas kesoleva lepingu stetega, siis vib ta hoolimata nende riikide kodumaisesseaduses stestatust esitada oma juhtumi selle lepinguosalise riigi kompetentsele ametivimule, kelle resident taon, vi kui tema juhtum kib 24. artikli 1. like alla, siis selle lepinguosalise riigi kompetentsele ametivimule,kelle kodanik ta on. Juhtum tuleb esitada kolme aasta jooksul alates lepingu stetele mittevastavat maksustamistphjustava tegevuse esimesest teatavakstegemisest.

(2) Kui protest on kompetentse ametivimu arvates igustatud ja ta rahuldavat lahendust ei saavuta, siis pab

ta kesolevale lepingule mittevastava maksustamise vltimiseks lahendada juhtumit vastastikusel kokkuleppelteise lepinguosalise riigi kompetentse ametivimuga. Kui kompetentsed ametivimud juavad kokkuleppele,siis vimaldatakse lepinguosalise riigi poolt vastavalt saavutatud kokkuleppele tagasimakseid vi maksukrediiti.Saavutatud kokkulepe viiakse tide hoolimata lepinguosaliste riikide kodumaise seaduse ajapiirangutest.

(3) Lepinguosaliste riikide kompetentsed ametivimud pavad vastastikusel kokkuleppel lahendada kikiraskusi vi kahtlusi, mis tekivad lepingu tlgendamisel vi rakendamisel. Samuti vivad nad ksteisegakonsulteerida topeltmaksustamise vltimiseks juhtudel, mida lepingus ei ole ksitletud.

(4) Lepinguosaliste riikide kompetentsed ametivimud vivad eelnevate likude mttes kokkuleppesaavutamiseks teineteisega vahetult konsulteerida. Kui kokkuleppe saavutamiseks osutub otstarbekaks suulinearvamustevahetus, siis vib see toimuda lepinguosaliste riikide kompetentsete ametivimude esindajatestkoosneva komisjoni kaudu.

26. artikkel. Informatsioonivahetus


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(1) Lepinguosaliste riikide kompetentsed ametivimud vahetavad sellist informatsiooni, mis on vajalikkesoleva lepingu stete vi lepinguosaliste riikide kodumaiste seaduste titmiseks lepingualuste maksudesuhtes niivrd, kui sellekohane maksustamine ei ole lepinguga vastuolus. Informatsioonivahetus ei olepiiratud 1. artikliga. Lepinguosaliselt riigilt saadud informatsiooni ksitletakse saladusena sarnaselt selle riigikodumaiste seaduste alusel saadava informatsiooniga ja seda avaldatakse ainult isikutele vi ametivimudele(sealhulgas kohtutele ja valitsusasutustele), kes on seotud lepingualuste maksude mramise vi kogumisega,maksude sissenudmise vi jrelevalvega, vi nende maksudega seotud kaebuste lahendamisega. Need isikudvi ametivimud kasutavad informatsiooni ainult nimetatud eesmrkidel. Nad vivad avaldada informatsiooniavalikul kohtuprotsessil vi kohtuotsuse alusel.

(2) 1. like stteid ei saa mingil juhul tlgendada kui lepinguosalisele riigile pandud kohustust:

a) kasutada administratiivseid meetmeid, mis on vastuolus selle vi teise lepinguosalise riigi seaduste jaadministratiivse tegevusega;b) anda informatsiooni, mis ei ole selle vi teise lepinguosalise riigi seaduste alusel vi administreerimisetavalise korra jrgi kttesaadav;c) anda informatsiooni, mis avaldaks mne kaubavahetuse, ritegevuse, tstusliku, kaubandusliku vikutsealase saladuse vi kaubavahetusprotsessi vi informatsiooni, mille avaldamine oleks vastuolus riiklikehuvidega (ordre public).

27. artikkel. Abi maksukogumisel

(1) Lepinguosalised riigid kohustuvad osutama teineteisele abi vlgnevatelt maksumaksjatelt maksudekogumisel ulatuses, mis vastab maksunude esitanud lepinguosalise riigi seaduste alusel lplikultkindlaksmratud summale.

(2) Lepinguosalise riigi maksunude puhul, mis on teise lepinguosalise riigi poolt maksukogumisenaaktsepteeritud, kogutakse sellised maksud selle teise riigi poolt koosklas tema maksude kogumise kohtakehtivate seadustega, otsekui niiviisi kogutavad maksud oleksid tema enda maksud.

(3) Lepinguosalise riigi maksunudega kaasneb selle riigi seaduste jrgi nutav teatis, mis tendabmaksumaksja poolt vlgnetavate maksude lplikku kindlaksmratust.

(4) Kui lepinguosalise riigi maksunue ei ole lplikult kindlaksmratud seetttu, et selle kohta vibesitada apellatsiooni vi algatada muud menetlused, siis vib see riik oma tulude kaitseks esitada teiselelepinguosalisele riigile maksunude, et viimane rakendaks tema eest selliseid ajutisi meetmeid, mis on selleteise riigi seaduste alusel teise riigi kasutuses. Kui selline maksunue on teise riigi poolt aktsepteeritud, siisksitletakse neid ajutisi meetmeid selle teise riigi poolt nii, otsekui esimesena mainitud riigile vlgnetavadmaksud oleksid selle teise riigi enda maksud.

(5) Maksunude esitamine 3. ja 4. like alusel toimub lepinguosalise riigi poolt ainult ulatuses, kui sellelepinguosalise riigi kasutuses ei ole vlgnetavate maksude sissenudmiseks kllaldaselt maksumaksja varasid.

(6) Lepinguosaline riik, kus maks vastavalt kesoleva artikli stetele sisse nutakse, on kohustatudlepinguosalisele riigile, kelle eest maksu koguti, viivitamatult le kandma vastava summa, millest on vajadusekorral maha arvatud 7. like punktis bksitletavad erakorralised kulud.

(7) Lepitakse kokku, et kui mlema lepinguosalise riigi kompetentsete ametivimude vahelises kokkuleppes eiole ette nhtud teisiti, siisa) kannab lepinguosalises riigis abi osutamisega seotud tavalised kulud see riik;b) kannab lepinguosalises riigis abi osutamisega seotud erakorralised kulud teine riik ja need kuuluvadmaksmisele sltumata teise riigi eest kogutud summast.

Niipea kui lepinguosaline riik neb ette erakorraliste kulude tekkimist, annab ta sellest teada teiselelepinguosalisele riigile ja nitab ra selliste kulude arvestusliku summa.

(8) Kesolevas artiklis thistab miste maksud lepingualuseid makse ja hlmab kiki nendega kaasnevaidintresse ja trahve.

28. artikkel. Diplomaatiliste esinduste vi konsulaarasutuste liikmed

Miski kesolevas lepingus ei mjuta diplomaatiliste esinduste vi konsulaarasutuste liikmete rahanduslikkeeelisigusi vastavalt rahvusvahelise iguse ldreeglitele vi erikokkulepete tingimustele.

29. artikkel. Lepingu justumine

(1) Lepinguosaliste riikide valitsused teatavad teineteisele kesoleva lepingu justumiseks vajalikephiseaduslike nuete titmisest.

(2) Leping justub kolmekmnendal peval prast viimast 1. likes mainitud teatamist ja tema stted hakkavadmlemas lepinguosalises riigis kehtima:

a) 1. jaanuaril vi prast 1. jaanuari saadud tulult kinnipeetavate maksude suhtes kalendriaastal, mis jrgneblepingu justumise aastale;


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b) teiste tulumaksude ja kapitalimaksude suhtes maksudele, mis kuuluvad maksmisele 1. jaanuaril vi prast1. jaanuari algaval maksuaastal kalendriaastal, mis jrgneb lepingu justumise aastale.

30. artikkel. Lepingu lpetamine

Kesolev leping jb jusse kuni tema lpetamiseni lepinguosalise riigi poolt. Kumbki lepinguosaline riik viblpetada lepingu diplomaatiliste kanalite kaudu kirjaliku etteteatamisega vhemalt kuus kuud enne kalendriaastalppu. Sel juhul lakkab leping kehtimast:a) 1. jaanuaril vi prast 1. jaanuari saadud tulult kinnipeetavate maksude suhtes kalendriaastal, mis jrgneblepingu lpetamisteate andmise aastale;b) teiste tulumaksude ja kapitalimaksude suhtes maksudele, mis kuuluvad maksmisele 1. jaanuaril vi prast1. jaanuari algaval maksuaastal kalendriaastal, mis jrgneb lepingu lpetamisteate andmise aastale.

Selle tendamiseks on vastavalt volitatud isikud kirjutanud alla kesolevale lepingule.

Slmitud Reykjavikis 1994. aasta 16. juunil inglise keeles.

Eesti Vabariigi poolt Islandi Vabariigi pooltA. ALAS T. B. HANNIBALSSON

Protokoll

Kirjutades tna alla tulu- ja kapitalimaksuga topeltmaksustamise vltimise ja maksudest hoidumise tkestamiselepingule Eesti Vabariigi ja Islandi Vabariigi vahel (edaspidi leping), leppisid allakirjutanud kokku jrgnevatesstetes, mis kujutavad endast lepingu lahutamatut osa:

(1)Viidates lepingu stetele

Miste statuudiga mratletud ksus puhul tunnustati, et see miste thistab igat riikliku iseloomuga juriidilistksust, mis on loodud lepinguosalise riigi seaduste jrgi ja kus ei ole osalust helgi teisel isikul peale selle riigi,riikliku allksuse vi kohaliku omavalitsuse.

(2)Viidates 7. artikli 3. likele

Tunnustati, et lepinguosalise riigi poolt mahaarvatavatena lubatud kulud hlmavad ainult kulusid, mis on selleriigi sisemaiste seaduste alusel mahaarvatavad.

(3)Viidates 8. artiklile

Tunnustati, et vljendit rahvusvahelisest meretranspordist saadud ettevtte kasumid tlgendatakse vastavaltOECD1992. aasta tpmaksulepingu mudeli 8. artikli kommentaaride 7. kuni 14. likele ning et see miste eihlma helgi juhul kasumeid omanikutulust vi tegevusest, mis on seotud dokkide, kaubaladude, terminaalide,rajatiste, laadimisseadmete vi muu sarnase maismaal asuva varaga, vlja arvatud juhul, kui need kasumid onotseselt seotud ettevtte laevaliiklusega.

(4)Viidates 11. artikli 3. like punktile d

Tunnustati, et isik on seotud teise isikuga, kui hel isikul, kellel ksi vi koos he vi enama seotud isikuga,on otseselt vi kaudselt suurem kui 50-protsendiline osalus teises isikus, vi kui hel vi enamal isikutel, kellelksi vi koos he vi enama seotud isikuga, on otseselt vi kaudselt suurem kui 50-protsendiline osalus kahesisikus.


Tunnustati, et miste autoritasu ei hlma vljamakseid puurseadmete kasutamise eest vi sarnase otstarbegaseadmete eest, mida kasutatakse ssivesinike uuringutel ja kasutuselevtul.

(6)Viidates 12. artikli 3. likele Tunnustati, et vastavalt 12. artikli 3. likele hlmab autoritasu mistetstusliku, kaubandusliku ja teadusalase sisseseade rentimisest saadud tulu.


2. like stteid ei rakendata vrvatavale tvtjale. Eelmise lause mttes loetakse lepinguosalise riigi residendisttvtjat vrvatuks, kui ta on antud teise isiku ksutusse isiku (tvahendaja) poolt, ttamaks selle teise isiku(tandja) ritegevuses teises lepinguosalises riigis, eeldusel, et tandja on teise riigi resident vi et tal on


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selles teises riigis alaline tegevuskoht, ja et tvahendajal puudub vastutus ja ta ei kanna mingit vastutust kattulemuse eest.

Otsustamaks, kas tvtjat loetakse vrvatuks, tuleb phjalikult uurida eriti, kas:a) lplik kontroll ttamise le lasub tandjal;b) t toimub tkohas, mis on tandja ksutuses ja mille eest ta vastutab;c) tvahendaja tasu arvestatakse vastavalt tvtja poolt ttatud ajale vi vastavalt mnele muule suhtele tasuja tvtja poolt saadud palga vahel;d) philised tvahendid ja materjalid antakse tandja poolt; jae) tvahendaja ei otsusta hepoolselt tvtjate arvu ja nende kvalifikatsiooni le.

Selle tendamiseks on vastavalt volitatud isikud kirjutanud alla kesolevale protokollile.

Slmitud Reykjavikis 1994. aasta 16. juunil inglise keeles.

Eesti Vabariigi poolt Islandi Vabariigi pooltA. ALAS T. B. HANNIBALSSON

Convention between the Republic of Estonia and the Republic of Icelandfor the Avoidance of Double Taxation and the Prevention of Fiscal Evasion

with Respect to Taxes on Income and on Capital

The Government of the Republic of Estonia and the Government of the Republic of Iceland,

Desiring to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasionwith respect to taxes on income and on capital,

Have agreed as follows:

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. The existing taxes to which this Convention shall apply are:a) in Estonia:(i) the income tax (tulumaks);(hereinafter referred to as Estonian tax);

b) in Iceland:(i) the national income tax (tekjuskattur til rkisins);(ii) the national capital tax (eignarskattur til rkisins); and(iii) the municipal income tax (tekjutsvar til sveitarflaga);(hereinafter referred to as Icelandic tax).

2. Where a new tax on income or on capital is introduced in a Contracting State after the date of signature of theConvention, the Convention shall apply also to such tax. The competent authorities of the Contracting Statesshall by mutual agreement determine whether a tax which is introduced in either Contracting State is one towhich the Convention shall apply according to the preceding sentence.

3. The Convention shall apply also to any taxes, being identical with or substantially similar to those mentionedor referred to in paragraphs 1 and 2, which are imposed after the date of signature of the Convention in additionto, or in place of, the taxes to which the Convention applies by virtue of those paragraphs. The competentauthorities of the Contracting States shall notify each other of any significant changes which have been made in

their respective taxation laws.

Article 3. General definitions

1. For the purposes of this Convention, unless the context otherwise requires:a) the term Estonia means the Republic of Estonia and, when used in the geographic sense, means the territoryof Estonia and any other area adjacent to the territorial waters of Estonia within which, under the laws of Estoniaand in accordance with international law, the rights of Estonia may be exercised with respect to the sea bed andits sub-soil and their natural resources;b) the term Iceland means the Republic of Iceland and, when used in a geographical sense, means the territoryof the Republic of Iceland and any area adjacent to the territorial sea of Iceland within which, under the laws ofIceland and in accordance with international law, Iceland has sovereign rights for the purpose of exploring andexploiting the natural resources of the sea bed and sub-soil;c) the term person includes an individual, a company and any other body of persons;d) the term company means any body corporate or any entity which is treated as a body corporate for tax

purposes;


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e) the terms enterprise of a Contracting State and enterprise of the other Contracting State mean respectivelyan enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of theother Contracting State;f) the term national means:(i) any individual possessing the nationality of a Contracting State;(ii) any legal person, partnership or association deriving its status as such from the laws in force in a ContractingState;g) the term international traffic means any transport by a ship or aircraft operated by an enterprise of aContracting State, except when the ship or aircraft is operated solely between places in the other ContractingState;h) the term competent authority means:(i) in Estonia, the Minister of Finance or his authorised representative;(ii) in Iceland, the Minister of Finance or his authorised representative;

2. As regards the application of the Convention by a Contracting State any term not defined therein shall, unlessthe context otherwise requires, have the meaning which it has under the law of that State concerning the taxes towhich the Convention applies.

Article 4. Residence

1. For the purposes of this Convention, the term resident of a Contracting State means any person who, under

the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, placeof incorporation or any other criterion of a similar nature. The term also includes a Contracting State itself, apolitical subdivision, a local authority and a statutory body thereof. The term does not include any person who isliable to tax in that State in respect only of income from sources in that State or capital situated therein.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, thenhis status shall be determined as follows:a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he hasa permanent home available to him in both States, he shall be deemed to be a resident of the State with whichhis personal and economic relations are closer (centre of vital interests);b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanenthome available to him in either State, he shall be deemed to be a resident of the State in which he has an habitualabode;c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the Stateof which he is a national;

d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shallsettle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of bothContracting States, the competent authorities of the Contracting States shall endeavour to settle the question bymutual agreement and determine the mode of application of the Convention to such person. In the absence ofsuch agreement, for the purposes of the Convention, the person shall in each Contracting State be deemed not tobe a resident of the other Contracting State.

Article 5. Permanent establishment

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

2. The term permanent establishment includes especially:

a) a place of management;b) a branch;c) an office;d) a factory;e) a workshop; andf) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. A building site, a construction, assembly or installation project or a supervisory or consultancy activityconnected therewith constitutes a permanent establishment only if such site, project or activity lasts for a periodof more than six months.

4. Notwithstanding the preceding provisions of this Article, the term permanent establishment shall be deemednot to include:a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging tothe enterprise;

b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose ofstorage, display or delivery;


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c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose ofprocessing by another enterprise;d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or ofcollecting information, for the enterprise;e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any otheractivity of a preparatory or auxiliary character;f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from thiscombination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent

status to whom paragraph 6 applies is acting on behalf of an enterprise and has, and habitually exercises,in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shallbe deemed to have a permanent establishment in that State in respect of any activities which that personundertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4which, if exercised through a fixed place of business, would not make this fixed place of business a permanentestablishment under the provisions of that paragraph.

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely becauseit carries on business in that State through a broker, general commission agent or any other agent of anindependent status, provided that such persons are acting in the ordinary course of their business. However,when the activities of such an agent are devoted wholly or almost wholly on behalf of that enterprise, he will notbe considered an agent of an independent status within the meaning of this paragraph.

7. The fact that a company which is a resident of a Contracting State controls or is controlled by a companywhich is a resident of the other Contracting State, or which carries on business in that other State (whetherthrough a permanent establishment or otherwise), shall not of itself constitute either company a permanentestablishment of the other.

Article 6. Income from immovable property

1. Income derived by a resident of a Contracting State from immovable property (including income fromagriculture 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 inwhich the property in question is situated. The term shall in any case include property accessory to immovableproperty, livestock and equipment used in agriculture and forestry, rights to which the provisions of generallaw respecting landed property apply, buildings, any option or similar right in respect of immovable property,usufruct of immovable property and rights to variable or fixed payments as consideration for the working of,or the right to work, mineral deposits, sources and other natural resources. Ships, boats and aircraft shall not beregarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any otherform of immovable property, as well as income from the alienation of immovable property.

4. Where the ownership of shares or other corporate rights in a company entitles the owner of such shares orcorporate rights to the enjoyment of immovable property held by the company, the income from the direct use,letting, or use in any other form of such right to enjoyment may be taxed in the Contracting State in which theimmovable property is situated.

5. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterpriseand to income from immovable property used for the performance of independent personal services.

Article 7. Business profits

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprisecarries on business in the other Contracting State through a permanent establishment situated therein. If theenterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but onlyso much of them as is attributable to:a) that permanent establishment; orb) sales in that other State of goods or merchandise of the same or similar kind as those sold through thatpermanent establishment; orc) other business activities carried on in that other State of the same or similar kind as those effected throughthat permanent establishment.

The provisions of sub-paragraphs b) and c) shall not apply if the enterprise shows that such sales or activitiescould not reasonably have been undertaken by that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business inthe other Contracting State through a permanent establishment situated therein, there shall in each Contracting

State be attributed to that permanent establishment the profits which it might be expected to make if it were a


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distinct and separate enterprise engaged in the same or similar activities under the same or similar conditionsand dealing wholly independently with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses whichare incurred for the purposes of the permanent establishment, including executive and general administrativeexpenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. Insofar as it has been customary in a Contracting State to determine the profits to be attributed to a permanentestablishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothingin paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such anapportionment as may be customary. The method of apportionment adopted shall, however, be such that theresult 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 permanentestablishment of goods or merchandise for the enterprise.

6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shallbe 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.

Article 8. Shipping and air transport

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

2. The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business, oran international operating agency.

Article 9. Associated enterprises

1. Wherea) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital ofan enterprise of the other Contracting State, orb) the same persons participate directly or indirectly in the management, control or capital of an enterprise of

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 financialrelations which differ from those which would be made between independent enterprises, then any profits whichwould, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, havenot so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State and taxes accordingly profits on which an enterprise of the other Contracting State has been charged to tax in that other State andthe profits so included are by the first-mentioned State claimed to be profits which would have accrued tothe enterprise of the first-mentioned State if the conditions made between the two enterprises had been thosewhich would have been made between independent enterprises, then that other State shall make an appropriateadjustment to the amount of the tax charged therein on those profits, where that other State considers theadjustment justified. In determining such adjustment, due regard shall be had to the other provisions of thisConvention and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10. Dividends1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other ContractingState may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying thedividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of thedividends the tax so charged shall not exceed:a) 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership)which holds directly at least 25 per cent of the capital of the company paying the dividends;b) 15 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States may by mutual agreement settle the mode of application ofthese limitations.

The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out ofwhich the dividends are paid.


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3. Notwithstanding the provisions of sub-paragraph a) of paragraph 2, dividends paid by a company which is aresident of Iceland to a company which is a resident of Estonia, may be taxed in Iceland at a rate not exceeding15 per cent on that part of the dividends which have, according to the laws of Iceland, been allowed as adeduction from the profits of, or as a carry forward as an operating loss of, the Icelandic company paying thedividends.

4. 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 corporate rights which is subjected to the same taxationtreatment as income from shares by the laws of the State of which the company making the distribution is aresident.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being aresident of a Contracting State, carries on business in the other Contracting State of which the company payingthe dividends is a resident, through a permanent establishment situated therein, or performs in that other Stateindependent personal services from a fixed base situated therein, and the holding in respect of which thedividends are paid is effectively connected with such permanent establishment or fixed base. In such case theprovisions of Article 7 or Article 14, as the case may be, shall apply.

6. Where a company which is a resident of a Contracting State derives profits or income from the otherContracting State, that other State may not impose any tax on the dividends paid by the company, except insofaras such dividends are paid to a resident of that other State or insofar as the holding in respect of which thedividends are paid is effectively connected with a permanent establishment or a fixed base situated in that otherState, nor subject the companys undistributed profits to a tax on the companys undistributed profits, even ifthe dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such otherState.

Article 11. Interest

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

2. However, such interest may also be taxed in the Contracting State in which it arises and according to thelaws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed10 per cent of the gross amount of the interest.

The competent authorities of the Contracting States may by mutual agreement settle the mode of application ofthis limitation.

3. Notwithstanding the provisions of paragraphs 1 and 2,a) interest arising in Iceland shall be exempt from Icelandic tax if the interest is paid to:(i) the State of Estonia, a political subdivision, a local authority or a statutory body thereof;(ii) the Bank of Estonia;(iii) any organisation established in the State of Estonia after the date of signature of this Convention and whichis of a similar nature as any organisation established in Iceland and referred to in sub-paragraph b) (iii) (thecompetent authorities of the Contracting States shall by mutual agreement determine whether such organisationsare of a similar nature); or(iv) any institution similar to any of those referred to in sub-paragraph b) (iv), as may be agreed from time totime between the competent authorities of the Contracting States;b) interest arising in Estonia shall be exempt from Estonian tax if the interest is paid to:(i) the State of Iceland, a political subdivision, a local authority or a statutory body thereof;(ii) the Central Bank of Iceland;(iii) the Industrial Loan Fund or the Industrial Development Fund, or any other similar institution, as may beagreed from time to time between the competent authorities of the Contracting States; or(iv) any other institution, similar to those mentioned in subdivision (iii), as may be agreed from time to timebetween the competent authorities of the Contracting States;

c) interest arising in a Contracting State on a loan guaranteed by any of the bodies mentioned or referred to insub-paragraph a) or sub-paragraph b) and paid to a resident of the other Contracting State shall be taxable onlyin that other State;d) interest arising in a Contracting State shall be taxable only in the other Contracting State if:(i) the recipient is a resident of that other State, and(ii) such recipient is an enterprise of that State and is the beneficial owner of the interest, and(iii) the interest is paid with respect to indebtedness arising on the sale on credit, by that enterprise, of anymerchandise or industrial, commercial or scientific equipment to an enterprise of the first-mentioned State,except where the sale or indebtedness is between related persons.

4. The term interest as used in this Article means income from debt-claims of every kind, whether ornot secured by mortgage, and in particular, income from government securities and income from bonds ordebentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges forlate payment shall not be regarded as interest for the purpose of this Article.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a residentof a Contracting State, carries on business in the other Contracting State in which the interest arises, through a


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permanent establishment situated therein, or performs in that other State independent personal services from afixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connectedwith such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as thecase may be, shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where,however, the person paying the interest, whether he is a resident of a Contracting State or not, has in aContracting State a permanent establishment or a fixed base in connection with which the indebtedness onwhich the interest is paid was incurred, and such interest is borne by such permanent establishment or fixedbase, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed baseis situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both ofthem and some other person, the amount of the interest, 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 absenceof 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 regardbeing had 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 inthat other State.

2. However, such royalties may also be taxed in the Contracting State in which they arise and according to thelaws of that State, but if the recipient is the beneficial owner of the royalties, the tax so charged shall not exceed:a) 5 per cent of the gross amount of royalties paid for the use of industrial, commercial or scientific equipment;b) 10 per cent of the gross amount of the royalties in all other cases.

The competent authorities of the Contracting States may by mutual agreement settle the mode of application ofthese limitations.

3. The term royalties as used in this Article means payments of any kind received as a consideration for theuse of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films,and films or tapes for television or radio broadcasting, any patent, trade mark, design or model, plan, secretformula or process, or for the use of, or the right to use, industrial, commercial, or scientific equipment, or for

information concerning industrial, commercial or scientific experience.4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a residentof a Contracting State, carries on business in the other Contracting State in which the royalties arise, througha permanent establishment situated therein, or performs in that other State independent personal services froma fixed base situated therein, and the right or property in respect of which the royalties are paid is effectivelyconnected with such permanent establishment or fixed base. In such case the provisions of Article 7 orArticle 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting State when the payer is 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 aContracting State a permanent establishment or a fixed base in connection with which the liability to pay theroyalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then suchroyalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6. Where, by reason of a special relationship between the payer and the beneficial owner or between both ofthem and some other person, the amount of royalties, having regard to the use, right or information for whichthey are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner inthe absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. Insuch 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.

7. If in any convention for the avoidance of double taxation concluded by Estonia with a third State, being amember of the Organisation for Economic Co-operation and Development (OECD) at the date of signature ofthis Convention, Estonia after that date would agree to exclude any kind of rights or property from the definitioncontained in paragraph 3 of this Article or exempt royalties arising in Estonia from Estonian tax on royalties orto limit the rates of tax provided in paragraph 2, such definition or exemption or lower rate shall automaticallyapply as if it had been specified in paragraph 3 or paragraph 2, respectively.

Article 13. Capital gains


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1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to inparagraph 2 of Article 6 and situated in the other Contracting State or shares in a company the assets of whichconsist mainly of such property may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanentestablishment which an enterprise of a Contracting State has in the other Contracting State or of movableproperty pertaining to a fixed base available to a resident of a Contracting State in the other Contracting Statefor the purpose of performing independent personal services, including such gains from the alienation of such apermanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that otherState.

3. Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated ininternational traffic or movable property pertaining to the operation of such ships or aircraft, shall be taxableonly in that State.

4. Gains from the alienation of any property other than that referred to in the preceding paragraphs of thisArticle, shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14. Independent personal services

1. Income derived by an individual who is a resident of a Contracting State in respect of professional servicesor other activities of an independent character shall be taxable only in that State unless he has a fixed baseregularly available to him in the other Contracting State for the purpose of performing his activities. If he hassuch a fixed base, the income may be taxed in that other State, but only so much of the income as is attributableto that fixed base. For this purpose, where an individual who is a resident of a Contracting State stays in theother Contracting State for a period or periods exceeding in the aggregate 183 days in any twelve-month periodcommencing or ending in the tax year concerned, he shall be deemed to have a fixed base regularly available tohim in that other State and the income that is derived from his activities referred to above that are performed inthat other State shall be attributable to that fixed base.

2. The term professional services includes especially independent scientific, literary, artistic, educational orteaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists andaccountants.

Article 15. Dependent personal services

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derivedby a resident of a Contracting State in respect of an employment shall be taxable only in that State unless theemployment is exercised in the other Contracting State. If the employment is so exercised, such remuneration asis derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State inrespect of an employment exercised in the other Contracting State shall be taxable only in the first-mentionedState if:a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days inany twelve-month period commencing or ending in the tax year concerned, andb) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, andc) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in theother State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employmentexercised aboard a ship or aircraft operated in international traffic by a resident of a Contracting State, may betaxed in that State.

Article 16. Directors fees

Directors fees and other similar payments derived by a resident of a Contracting State in his capacity as amember of the board of directors or any other similar organ of a company which is a resident of the otherContracting State may be taxed in that other State.

Article 17. Artistes and sportsmen

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State asan entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, fromhis 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 assuch accrues not to the entertainer or sportsman himself but to another person, that income may, notwithstandingthe provisions of Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertaineror sportsman are exercised.


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3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities exercised in aContracting State by an entertainer or a sportsman if the visit to that State is wholly or mainly supported bypublic funds of the other Contracting State, or a political subdivision, or a local authority thereof. In such case,the income shall be taxable in accordance with the provisions of Articles 7, 14 or 15, as the case may be.

Article 18. Pensions and similar payments

1. Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to aresident of a Contracting State shall be taxable only in that State.

2. Notwithstanding the provisions of paragraph 1, and the provisions of paragraph 2 of Article 19, pensions paidand other benefits, whether periodic or lump-sum compensation, granted under the social security legislationof a Contracting State or under any public scheme organised by a Contracting State for social welfare purposesshall be taxable only in that State.

Article 19. Government service

1. a) Remuneration, other than a pension, paid by a Contracting State, or a political subdivision, or a localauthority, or a statutory body thereof, to an individual in respect of dependent personal services rendered to thatState, subdivision, authority or body shall be taxable only in that State.b) However, such remuneration shall be taxable only in the Contracting State of which the individual is a

resident if the services are rendered in that State and the individual:(i) is a national of that State; or(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. a) Any pension paid by, or out of funds created by, a Contracting State, or a political subdivision, or a localauthority, or a statutory body thereof, to an individual in respect of services rendered to that State, subdivision,authority or body shall be taxable only in that State.b) However, such pension shall be taxable only in the Contracting State of which the individual is a resident ifhe is a national of that State.

3. The provisions of Articles 15, 16 and 18 shall apply to remuneration and pensions in respect of servicesrendered in connection with a business carried on by a Contracting State, or a political subdivision, or a localauthority, or a statutory body thereof.

Article 20. Students

Payments which a student, or an apprentice or trainee, who is or was immediately before visiting a ContractingState a resident of the other Contracting State and who is present in the first-mentioned State solely for thepurpose of his education or training receives for the purpose of his maintenance, education or training shall notbe taxed in that State, provided that such payments arise from sources outside that State.

Article 21. Other income

1. Items of income of a resident of a Contracting State not dealt with in the foregoing Articles of thisConvention shall be taxable only in that State. However, such items of income, arising in the other ContractingState, may also be taxed in that other State.

2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property asdefined in paragraph 2 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, or

performs in that other State independent personal services from a fixed base situated therein, and the right orproperty in respect of which the income is paid is effectively connected with such permanent establishment orfixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 22. Capital

1. Capital represented by immovable property referred to in paragraph 2 of Article 6, owned by a resident ofa Contracting State and situated in the other Contracting State, or by shares in a company the assets of whichconsist mainly of such property may be taxed in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishmentwhich an enterprise of a Contracting State has in the other Contracting State or by movable property pertainingto a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose ofperforming independent personal services, may be taxed in that other State.


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3. Capital represented by ships and aircraft operated in international traffic by an enterprise of a ContractingState, and by movable property pertaining to the operation of such ships and aircraft, shall be taxable only inthat State.

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

Article 23. Elimination of double taxation

1. In Estonia double taxation shall be eliminated as follows:a) Where a resident of Estonia derives income or owns capital which, in accordance with this Convention, maybe taxed in Iceland, unless a more favourable treatment is provided in its domestic law, Estonia shall allow:

(i) as a deduction from the tax on the income of that resident, an amount equal to the income tax paid thereon inIceland;(ii) as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid thereon inIceland.Such deduction in either case shall not, however, exceed that part of the income or capital tax in Estonia, ascomputed before the deduction is given, which is attributable, as the case may be, to the income or the capitalwhich may be taxed in Iceland.b) For the purpose of sub-paragraph a), where a company that is a resident of Estonia receives a dividend from acompany that is a resident of Iceland in which it owns at least 10 per cent of its shares having full voting rights,the tax paid in Iceland shall include not only the tax paid on the dividend but also the tax paid on the underlyingprofits of the company out of which the dividend was paid.

2. In Iceland double taxation shall be eliminated as follows:a) Where a resident of Iceland derives income or owns capital which, in accordance with the provisions ofthis Convention, may be taxed in Estonia, Iceland shall, subject to the provisions of sub-paragraphs b) and c),exempt such income or capital from tax.b) Where a resident of Iceland derives items of income which, in accordance with the provisions of:(i) sub-paragraph b) of paragraph 2 of Article 10, or(ii) paragraph 2 of Articles 11 or 12may be taxed in Estonia, Iceland shall allow as a deduction from the tax on the income of that resident anamount equal to the tax paid in Estonia. Such deduction shall not, however, exceed that part of the tax, ascomputed before the deduction is given, which is attributable to such items of income derived from Estonia.c) Where in accordance with any provision of the Convention income derived or capital owned by a residentof Iceland is exempt from tax in Iceland, Iceland may nevertheless, in calculating the amount of tax on theremaining income or capital of such resident, take into account the exempted income or capital.d) The provisions in subdivision b) (i) shall apply for the first 10 years for which the Convention is effective.The competent authorities shall consult each other in order to determine whether such period shall be extended.Any such extension shall take effect from such date and subject to such modifications and conditions, includingconditions as to termination, as may be specified and agreed between the Contracting States in notes tobe exchanged through diplomatic channels or in any other manner in accordance with their constitutionalprocedures. When according to this sub-paragraph, subdivision b) (i) ceases to apply, subdivision b) (ii) shall bereplaced by the following: (ii) paragraph 2 of Articles 10, 11 or 12.

Article 24. Non-discrimination

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

2. Stateless persons who are residents of a Contracting State shall not be subjected in either Contracting State toany taxation or any requirement connected therewith which is other or more burdensome than the taxation andconnected requirements to which nationals of the State concerned in the same circumstances, in particular with

respect to residence, are or may be subjected.3. The taxation on a permanent establishment which an enterprise of a Contracting State has in the otherContracting State shall not be less favourably levied in that other State than the taxation levied on enterprises ofthat other State carrying on the same activities. This provision shall not be construed as obliging a ContractingState to grant to residents of the other Contracting State any personal allowances, reliefs and reductions fortaxation purposes on account of civil status or family responsibilities which it grants to its own residents.

4. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 ofArticle 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting Stateto a resident of the other Contracting State shall, for the purpose of determining the taxable profits of suchenterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentionedState. Similarly, any debts of an enterprise of a Contracting State to a resident of the other Contracting Stateshall, for the purpose of determining the taxable capital of such enterprise, be deductible under the sameconditions as if they had been contracted to a resident of the first-mentioned State.


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

6. The provisions of this Article shall, notwithstanding the provisions of Article 2, apply to taxes of every kindand description.

Article 25. Mutual agreement procedure

1. Where a person considers that the actions of one or both of the Contracting States result or will result forhim in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remediesprovided by the domestic law of those States, present his case to the competent authority of the ContractingState of which he is a resident or, if his case comes under paragraph 1 of Article 24, to that of the ContractingState of which he is a national. The case must be presented within three years from the first notification of theaction 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 it is not itselfable to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authorityof the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the

Convention. In the event the competent authorities reach an agreement, refund or credit of taxes shall be allowedby the Contracting States in accordance with such agreement. Any agreement reached shall be implementednotwithstanding any time limits in the domestic law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement anydifficulties or doubts arising as to the interpretation or application of the Convention. They may also consulttogether for the elimination of double taxation in cases not provided for in the Convention.

4. The competent authorities of the Contracting States may communicate with each other directly for thepurpose of reaching an agreement in the sense of the preceding paragraphs. When it seems advisable in orderto reach agreement to have an oral exchange of opinions, such exchange may take place through a Commissionconsisting of representatives of the competent authorities of the Contracting States.

Article 26. Exchange of information

1. The competent authorities of the Contracti

DTC agreement between Iceland and Estonia

Documents

Transcript of DTC agreement between Iceland and Estonia