DTC agreement between Egypt and Albania

7/30/2019 DTC agreement between Egypt and Albania

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A G R E E M E N T

BETWEEN

THE GOVERNMENT OF THE REPUBLIC OF ALBANIA

AND

THE GOVERNMENT OF THE ARAB REPUBLIC OF EGYPT

FOR 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 Albania and the Government ofthe Arab Republic of Egypt,

Desiring to conclude an Agreement for the avoidance of doubletaxation and for the prevention of fiscal evasion with respectto taxes on income and on capital,

Have agreed as follows:

A r t i c l e 1

PERSONAL SCOPE

This Agreement shall apply to persons who are residents of oneor both of the Contracting States.


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A r t i c l e 2

TAXES COVERED

1. This Agreement shall apply to taxes on income and on

capital imposed on behalf of a Contracting State or of itspolitical subdivisions or local authorities, irrespective of themanner in which they are levied.

2. There shall be regarded as taxes on income and on capital alltaxes imposed on total income, on total capital, or on elementsof income or of capital, including taxes on gains from thealienation of movable or immovable property, taxes on the totalamounts of wages or salaries, as well as taxes on capitalappreciation.

3. The existing taxes to which the Agreement shall apply are:

(a) In the case of Arab Republic of Egypt:

(i) tax on income derived from immovable properties(including the land tax, and the building tax);

(ii) unified tax on income of individuals;(iii) corporation profits tax;(iv) development duty imposed by the law No. 147 of the

year 1984 and its amendments;(v) supplementary taxes imposed as percentage of taxes

mentioned above or otherwise;

(hereinafter referred to as "Egyptian tax");

(b) In the case of the Republic of Albania:

(i) the profits tax;(ii) the tax on small business activities;(iii) the personal income tax, and(iv) the property tax;

(hereinafter referred to as "Albanian Tax").

4. The Agreement shall also apply to any identical orsubstantially similar taxes which are imposed after the date of

signature of the Agreement in addition to, or in place of, theexisting taxes. The competent authorities of the ContractingStates shall notify each other of any substantial changes whichhave been made in their respective taxation laws.

A r t i c l e 3

GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the contextotherwise requires:


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(a) the term "Albania" means the Republic of Albania, and whenused in the geographical sense, means the territory ofthe Republic of Albania, including territorial watersand air space over them as well as any area beyond theterritorial waters of the Republic of Albania, which, in

accordance with international law and the laws of theRepublic of Albania, is an area within which the Republicof Albania may exercise rights with respect to the seabedand subsoil and their natural resources;

(b) the term "Egypt" means the Arab Republic of Egypt, andwhen used in a geographical sense, the term "Egypt"includes:

(i) the territorial seas thereof, and(ii) the seabed and subsoil of the submarine areas adjacent

to the coast thereof, but beyond the territorial sea,

over which Egypt exercises sovereign rights, inaccordance with Egyptian legislation and internationallaw for the purpose of exploration for or the

exploitation of the natural resources of such area, butonly to the extent that the person, property oractivity to which the Agreement is being applied isconnected with such exploration or exploitation;

(c) the terms "a Contracting State" and "the otherContracting State" mean Albania or Egypt as the contextrequires;

(d) the term "person" includes an individual, a company andany other body of persons;

(e) the term "company" means any body corporate or any entitywhich is treated as a juridical person for tax purposes;

(f) the terms "enterprise of a Contracting State" and"enterprise of the other Contracting State" meanrespectively an enterprise carried on by a resident of aContracting State and an enterprise carried on by aresident of the other Contracting State;

(g) the term "tax" means Albanian tax or Egyptian tax, as the

context requires;

(h) the term "international traffic" means any transport by aship or aircraft operated by an enterprise which has itsplace of effective management in a Contracting State,except when the ship or aircraft is operated solelybetween places in the other Contracting State;

(i) the term "competent authority" means:

(a) in the case of Egypt, the Minister of Finance orhis authorized representative;


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(b) in the case of Albania, the Minister of Finance or hisauthorized representative;

(j) the term "national" means:

(a) any individual possessing the nationality of aContracting State;

(b) any juridical person, partnership or associationderiving their status as such from the law in forcein a Contracting State.

2. As regards the application of the Agreement by aContracting State, any term not defined therein shall, unlessthe context otherwise requires, have the meaning which it hasunder the law of that State concerning the taxes to which theAgreement applies. Any meaning under the applicable tax laws of

that State prevails over other meanings given to the term underother laws of that State.

A r t i c l e 4

RESIDENT

1. For the purposes of this Agreement, the term "resident of aContracting State" means any person who, under the laws of thatState, is liable to tax therein by reason of his domicile,residence, place of management, or any other criterion of asimilar nature.

2. Where by reason of the provisions of paragraph 1, anindividual is a resident of both Contracting States, then hisstatus shall be determined as follows:

(a) he shall be deemed to be a resident of the State in whichhe has a permanent home available to him; if he has apermanent home available to him in both States, he shallbe deemed to be a resident of the State with which hispersonal and economic relations are closer (center ofvital interests);

(b) if the State in which he has his centre of vital interestscannot be determined, or if he has not a permanent homeavailable to him in either State, he shall be deemed to bea resident of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neitherof them, he shall be deemed to be a resident of theState of 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 shall


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settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1 a personother than an individual is a resident of both ContractingStates, then it shall be deemed to be a resident of the State inwhich its place of effective management is situated.

A r t i c l e 5

PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement the term "permanentestablishment" means a fixed place of business through which thebusiness 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;

(f) a mine, an oil or gas well, a quarry or any other placeof extraction of natural resources;

(g) a farm or a plantation;

(h) premises and warehouses used as sales outlets.

3. The term "permanent establishment" likewise encompasses:

(a) a building site or a construction or assembly project orinstallation project or supervisory activities inconnection therewith, but only where such site, project oractivities continue for a period or periods aggregatingmore than six months, within any 12-month period;

(b) the furnishing of services, including consultancyservices, by an enterprise through employees or otherpersonnel, but only where activities of that naturecontinue (for the same or a connected project) within thecountry for a period or periods aggregating more than sixmonths within any 12-month period.

4. Notwithstanding the preceding provisions of this Article,the term "permanent establishment" shall be deemed not toinclude:


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(a) the use of facilities solely for the purpose of storage ordisplay of goods or merchandise belonging to theenterprise;

(b) the maintenance of a stock of goods or merchandisebelonging to the enterprise solely for the purpose of

storage or display;

(c) the maintenance of a stock of goods or merchandisebelonging to the enterprise solely for the purpose ofprocessing by another enterprise;

(d) the maintenance of a fixed place of business solely forthe purpose of purchasing goods or merchandise or ofcollecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely forthe purpose of carrying on, for the enterprise, any other

activity of a preparatory or auxiliary character;

(f) the maintenance of a fixed place of business solely forany combination of activities mentioned in sub-paragraphs(a) to (e), provided that the overall activity of thefixed place of business resulting from this combination isof a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraphs 1 and 2, where aperson -other than an agent of an independent status to whomparagraph 7 applies- is acting in a Contracting State on behalfof an enterprise of the other Contracting State, that enterpriseshall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities whichthat person undertakes for the enterprise, if the person has andhabitually exercises in that State an authority to concludecontracts in the name of the enterprise, unless theactivities of such person are limited to those mentioned inparagraph 4 which, if exercised through a fixed place ofbusiness, would not make this fixed place of business apermanent establishment under the provisions of that paragraph.

6. Notwithstanding the preceding provisions of this Article, aninsurance enterprise of a Contracting State shall - except with

regard to reinsurance - be deemed to have a permanentestablishment in the other Contracting State if it collectspremiums in the territory of that other State or insures riskssituated therein through a person other than an agent of anindependent status to whom paragraph 7 applies.

7. An enterprise of a Contracting State shall not be deemed tohave a permanent establishment in the other Contracting Statemerely because it carries on business in that other Statethrough a broker, general commission agent or any other agent ofan independent status, provided that such persons are acting inthe ordinary course of their business. However, when the


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activities of such an agent are devoted wholly or almost whollyon behalf of that enterprise, he will not be considered an agentof an independent status within the meaning of this paragraph.

8. The fact that a company which is a resident of aContracting State controls or is controlled by a company which

is a resident of the other Contracting State, or which carrieson business in that other State (whether through a permanentestablishment or otherwise), shall not of itself constituteeither company a permanent establishment of the other.

A r t i c l e 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from

immovable property (including income from agriculture orforestry) situated in the other Contracting State may be taxedin that other State.

2. The term "immovable property" shall have the meaning which ithas under the law of the Contracting State in which the propertyin question is situated. The term shall in any case includeproperty accessory to immovable property, livestock andequipment used in agriculture and forestry, rights to which theprovisions of general law respecting landed property apply,usufruct of immovable property and rights to variable or fixedpayments as consideration for the working of, or the right towork, mineral deposits, sources and other natural resources.Ships and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall also apply to incomederived from the direct use, letting, or use in any other formof immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to theincome from immovable property of an enterprise and to incomefrom immovable property used for the performance of independentpersonal services.

A r t i c l e 7

BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shallbe taxable only in that State unless the enterprise carries onbusiness in the other Contracting State through a permanentestablishment situated therein. If the enterprise carries onbusiness as aforesaid, the profits of the enterprise may betaxed in the other State, but only so much of them as isattributable to that permanent establishment.


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2. Subject to the provisions of paragraph 3, where an enterpriseof a Contracting State carries on business in the otherContracting State through a permanent establishment situatedtherein, there shall in each Contracting State be attributed tothat permanent establishment the profits which it might be

expected to make if it were a distinct and separate enterpriseengaged in the same or similar activities under the same orsimilar conditions and dealing wholly independently with theenterprise of which it is a permanent establishment.

3. In the determination of the profits of a permanentestablishment, there shall be allowed as deductions expenseswhich are incurred for the purposes of the business of thepermanent establishment, including executive and generaladministrative expenses so incurred, whether in the State inwhich the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a permanent establishmentby reason of the mere purchase by that permanent establishmentof goods or merchandise for the enterprise.

5. Insofar as it has been customary in a Contracting State todetermine the profits to be attributed to a permanentestablishment on the basis of an apportionment of the totalprofits of the enterprise to its various parts, nothing inparagraph 2 shall preclude that Contracting State fromdetermining the profits to be taxed by such an apportionment asmay be customary; the method of apportionment adopted shall,however, be such that the result shall be in accordance with theprinciples contained in this Article.

6. For the purposes of the preceding paragraphs, the profits tobe attributed to the permanent establishment shall be determinedby the same method year by year, unless there is good andsufficient reason to the contrary.

7. Where profits include items of income which are dealtwith separately in other Articles of this Agreement, then theprovisions of those Articles shall not be affected by theprovisions of this Article.

A r t i c l e 8

SHIPPING AND AIR TRANSPORT

1. Profits from the operation of ships or aircraft ininternational traffic shall be taxable only in the ContractingState in which the place of effective management of theenterprise is situated.

2. If the place of effective management of a shipping enterpriseis aboard a ship, then it shall be deemed to be situated in the


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Contracting State in which the home harbour of the ship issituated, or, if there is no such home harbour, in theContracting State of which the operator of the ship is aresident.

3. The provisions of paragraph 1 shall also apply to profits

from the participation in a pool, a joint business or aninternational operating agency.

A r t i c l e 9

ASSOCIATED ENTERPRISES

1. Where :

(a) an enterprise of a Contracting State participates directlyor indirectly in the management, control or capital of anenterprise of the other Contracting State, or

(b) the same persons participate directly or indirectly in themanagement, control or capital of an enterprise of aContracting State and an enterprise of the otherContracting State,

and in either case conditions are made or imposed between thetwo enterprises in their commercial or financial relations whichdiffer from those which would be made between independententerprises, then any profits which would, but for thoseconditions, have accrued to one of the enterprises, but, byreason of those conditions, have not so accrued, may be includedin the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of anenterprise of that State -and taxes accordingly- profits onwhich an enterprise of the other Contracting State has beencharged to tax in that other State and the profits so includedare profits which would have accrued to the enterprise of thefirst-mentioned State if the conditions made between the twoenterprises had been those which would have been made betweenindependent enterprises, then that other State shall make an

appropriate adjustment to the amount of the tax charged thereinon those profits. In determining such adjustment, due regardshall be had to the other provisions of this Agreement.

3. A Contracting State shall not change the profits of anenterprise in the circumstances referred to in paragraph 1 afterthe expiry of the time limits provided in its national laws and,at any case, after five years from the end of the year in whichthe profits which would be subject to such change would haveaccrued to an enterprise of that State.

4. The provisions of paragraphs 2 and 3 shall not apply in the


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case of fraud, wilful default or neglect.

A r t i c l e 10

DIVIDENDS

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

2. However, such dividends may also be taxed in theContracting State of which the company paying the dividends is aresident and according to the laws of that State, but if therecipient is the beneficial owner of the dividends the tax socharged shall not exceed 10 per cent of the gross amount of thedividends. The competent authorities of the Contracting States

shall by mutual agreement settle the mode of application of thislimitation. The provisions of this paragraph shall not affectthe taxation of the company on the profits out of which thedividends are paid.

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

4. The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the dividends, being a resident of aContracting State, carries on business in the other ContractingState of which the company paying the dividends is a resident,through a permanent establishment situated therein, or performsin that other State independent personal services from a fixedbase situated therein, and the holding in respect of which thedividends are paid is effectively connected with such permanentestablishment or fixed base. In such case, the provisions ofArticle 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting Statederives profits or income from the other Contracting State, that

other State may not impose any tax on the dividends paid by thecompany, except insofar as such dividends are paid to a residentof that other State or insofar as the holding in respect ofwhich the dividends are paid is effectively connected with apermanent establishment or a fixed base situated in that otherState, nor subject the company's undistributed profits to a taxon the company's undistributed profits, even if the dividendspaid or the undistributed profits consist wholly or partly ofprofits or income arising in such other State.

A r t i c l e 11


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INTEREST

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

2. However, such interest may also be taxed in the ContractingState in which it arises and according to the laws of thatState, but if the recipient is the beneficial owner of the in-terest the tax so charged shall not exceed 10 percent of thegross amount of the interest. The competent authorities of theContracting States shall by mutual agreement settle the mode ofapplication of this limitation.

3. The term "interest" as used in this Article means incomefrom debt-claims of every kind, whether or not secured bymortgage and whether or not carrying a right to participate in

the debtor's profits, and in particular, income from governmentsecurities and income from bonds or debentures, includingpremiums and prizes attaching to such securities, bonds ordebentures.

4. The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the interest, being a resident of aContracting State, carries on business in the otherContracting State in which the interest arises, through apermanent establishment situated therein, or performs in thatother State independent personal services from a fixed basesituated therein, and the debt-claim in respect of which theinterest is paid is effectively connected with such permanentestablishment or fixed base. In such case, the provisions ofArticle 7 or Article 14, as the case may be, shall apply.

5. Interest shall be deemed to arise in a Contracting State whenthe payer is that State itself, a political subdivision, a localauthority or a resident of that State. Where, however, theperson paying the interest, whether he is a resident of a Con-tracting State or not, has in a Contracting State a permanentestablishment or a fixed base in connection with which theindebtedness on which the interest is paid was incurred, andsuch 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 base is situated.

6. Where, by reason of a special relationship between the payerand the beneficial owner or between both of them and some otherperson, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would havebeen agreed upon by the payer and the beneficial owner in theabsence of such relationship, the provisions of this Articleshall apply only to the last-mentioned amount. In such case, theexcess part of the payments shall remain taxable according tothe laws of each Contracting State, due regard being had to theother provisions of this Agreement.


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A r t i c l e 12

ROYALTIES

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

2. However, such royalties may also be taxed in the ContractingState in which they arise and according to the laws of thatState, but if the recipient is the beneficial owner of theroyalties, the tax so charged shall not exceed 10 percent of thegross amount of the royalties. The competent authorities of theContracting States shall by mutual agreement settle the mode ofapplication of this limitation.

3. The term "royalties" as used in this Article means paymentsof any kind received as a consideration for the use of, or theright to use, any copyright of literary, artistic or scientificwork including cinematograph films, or films or tapes used forradio or television broadcasting, any patent, trade mark, designor model, software, plan, secret formula or process, or for theuse of, or the right to use, industrial, commercial, orscientific equipment, or for information concerning industrial,commercial or scientific experience.

4. The provisions of paragraphs 1 and 2 shall not apply if thebeneficial owner of the royalties, being a resident of aContracting State, carries on business in the other ContractingState in which the royalties arise, through a permanentestablishment situated therein, or performs in that other Stateindependent personal services from a fixed base situatedtherein, and the right or property in respect of which theroyalties are paid is effectively connected with such permanentestablishment or fixed base. In such case, the provisions ofArticle 7 or Article 14, as the case may be, shall apply.

5. Royalties shall be deemed to arise in a Contracting Statewhen the payer is that State itself, a political subdivision, alocal authority or a resident of that State. Where, however, the

person paying the royalties, whether he is a resident of aContracting State or not, has in a Contracting State a permanentestablishment or a fixed base in connection with which theliability to pay the royalties was incurred, and such royaltiesare borne by such permanent establishment or fixed base, thensuch royalties shall be deemed to arise in the Contracting Statein which the permanent establishment or fixed base is situated.

6. Where, by reason of a special relationship between thepayer and the beneficial owner or between both of them and someother person, the amount of the royalties, having regard to theuse, right or information for which they are paid, exceeds the


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amount which would have been agreed upon by the payer and thebeneficial owner in the absence of such relationship, theprovisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the paymentsshall remain taxable according to the laws of each ContractingState, due regard being had to the other provisions of this

Agreement.

A r t i c l e 13

CAPITAL GAINS

1. Gains derived by a resident of a Contracting State from thealienation of immovable property referred to in Article 6 andsituated in the other Contracting State may be taxed in thatother State.

2. Gains from the alienation of movable property forming part ofthe business property of a permanent establishment which anenterprise of a Contracting State has in the other ContractingState or of movable property pertaining to a fixed baseavailable to a resident of a Contracting State in the otherContracting State for the purpose of performing independentpersonal services, including such gains from the alienation ofsuch a permanent establishment (alone or with the wholeenterprise) or of such fixed base, may be taxed in that otherState.

3. Gains from the alienation of ships or aircraft operated ininternational traffic or movable property pertaining to theoperation of such ships or aircraft, shall be taxable only inthe Contracting State in which the place of effective managementof the enterprise is situated.

4. Gains from the alienation of shares of the capital stock of acompany the property of which consists directly or indirectlyprincipally of immovable property situated in a ContractingState may be taxed in that Contracting State.

5. Gains from the alienation of any property other than thatreferred to in preceding paragraphs of this Article may be taxed

in the Contracting State where the income arises.

A r t i c l e 14

INDEPENDENT PERSONAL SERVICES


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1. Income derived by a resident of a Contracting State inrespect of professional services or other activities of anindependent character shall be taxable only in that State exceptin the following circumstances, when such income may also betaxed in the other Contracting State:

(a) if he has a fixed base regularly available to him in theother Contracting State for the purpose of performing hisactivities; in that case, only so much of the income as isattributable to that fixed base may be taxed in that otherContracting State; or

(b) if his stay in the other Contracting State is for a periodor periods amounting to or exceeding in the aggregate 183days in the fiscal year concerned; in that case, only asso much of the income as is derived from his activitiesperformed in that other State may be taxed in that otherState.

2. The term "professional services" includes especiallyindependent scientific, literary, artistic, educational orteaching activities as well as the independent activities ofphysicians, lawyers, engineers, architects, dentists andaccountants.

A r t i c l e 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 18, 19, 20 and 21,salaries, wages and other similar remuneration derived by aresident of a Contracting State in respect of an employmentshall be taxable only in that State unless the employment isexercised in the other Contracting State. If the employment isso exercised, such remuneration as is derived therefrom may betaxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remunerationderived by a resident of a Contracting State in respect of anemployment exercised in the other Contracting State shall betaxable only in the first-mentioned State if all the following

conditions are met:

(a) the recipient is present in the other State for a periodor periods not exceeding in the aggregate 183 days in thefiscal year concerned; and

(b) the remuneration is paid by, or on behalf of, an employerwho is not a resident of the other State; and

(c) the remuneration is not borne by a permanent establishmentor a fixed base which the employer has in the other State.


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3. Notwithstanding the preceding provisions of this Article,remuneration derived in respect of an employment exercisedaboard a ship or aircraft operated in international traffic maybe taxed in the Contracting State in which the place ofeffective management of the enterprise is situated.

A r t i c l e 16

DIRECTORS' FEES

Directors' fees and other similar payments derived by a residentof a Contracting State in his capacity as a member of the boardof directors or any other similar organ of a company which is aresident of the other Contracting State may be taxed in thatother State.

A r t i c l e 17

ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 14 and 15, incomederived by a resident of a Contracting State as an entertainer,such as a theatre, motion picture, radio or television artiste,or a musician, or as a sportsman, from his personal activitiesas such exercised in the other Contracting State, may be taxedin that other State.

2. Where income in respect of personal activities exercisedby an entertainer or a sportsman in his capacity as such accruesnot to the entertainer or sportsman himself but to another per-son, that income may, notwithstanding the provisions of Articles7, 14 and 15, be taxed in the Contracting State in which the ac-tivities of the entertainer or sportsman are exercised.

A r t i c l e 18

PENSIONS

Pensions and other similar remuneration arising in a ContractingState and paid to a resident of the other Contracting State inconsideration of past employment shall be taxed only in thatother State.

A r t i c l e 19

GOVERNMENT SERVICES

1.(a) Remuneration, other than a pension, paid by or out of


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funds created by a Contracting State or a politicalsubdivision or a local authority thereof to an individualin respect of services rendered to that State orsubdivision or authority shall be taxable only in thatState.

(b) However, such remuneration shall be taxable only in theother Contracting State if the services are rendered inthat other State and the individual is a resident ofthat other State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely forthe purpose of rendering services.

2. The provisions of Articles 15, 16 and 18 shall apply toremuneration and pensions in respect of services rendered in

connection with a business carried on by a Contracting State ora political subdivision or a local authority thereof.

A r t i c l e 20

PAYMENTS RECEIVED BY STUDENTSAND APPRENTICES

A resident of a Contracting State who is temporarily present inthe other Contracting State solely:

(a) as a student at a university, college or school;

(b) as a business or technical apprentice, or

(c) as the recipient of a grant, allowance or award for theprimary purpose of study or research from a religious,charitable, scientific or educational organization;

shall not be taxed in that other State for any payment orremuneration received for the purpose of his maintenance,education or training, provided that such payments orremuneration arise from sources outside that other State.

A r t i c l e 21

PROFESSORS,TEACHERS AND RESEARCHERS

1. Where a resident of a Contracting State who, at the


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invitation of a university, college or other scientificinstitution in the other Contracting State, visits that otherState solely for the purpose of teaching or scientific researchfor a period not exceeding two years shall not be taxed in thatother State on his remuneration for such teaching or research,provided that such remuneration arises from sources outside that

other State.

2. The provisions of paragraph 1 shall not apply to remunerationderived in respect of research undertaken not in the publicinterest but primarily for the private benefit of a specificperson or persons.

A r t i c l e 22

OTHER INCOME

1. Subject to the provisions of paragraph 2, items of income ofa resident of a Contracting State, wherever arising, not dealtwith in the foregoing Articles of this Agreement shall betaxable only in that State.

2. However, if such income is derived by a resident of aContracting State from sources in the other Contracting State,such income may also be taxed in the State in which it arises,and according to the law of that State.

A r t i c l e 23

CAPITAL

1. Capital represented by immovable property referred to inArticle 6, owned by a resident of a Contracting State andsituated in the other Contracting State, may be taxed in thatother State.

2. Capital represented by movable property forming part of thebusiness property of a permanent establishment which anenterprise of a Contracting State has in the other Contracting

State or by movable property pertaining to a fixed baseavailable to a resident of a Contracting State in the otherContracting State for the purpose of performing independentpersonal services may be taxed in that other State.

3. Capital represented by ships and aircraft operated ininternational traffic and by movable property pertaining to theoperation of such ships and aircraft, shall be taxable only inthe Contracting State in which the place of effective managementof the enterprise is situated.

4. All other elements of capital of a resident of a


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Contracting State shall be taxable only in that State.

A r t i c l e 24

ELIMINATION OF DOUBLE TAXATION

1. Where a resident of a Contracting State derives income orowns capital, which in accordance with the provisions of thisAgreement, may be taxed in the other Contracting State, thefirst-mentioned Contracting State shall allow as a deductionfrom the tax on the income or on the capital of that resident anamount equal to the income tax or capital tax paid in that otherContracting State. Such deduction shall not, however, exceedthat part of the income tax or capital tax as computed beforethe deduction is given, which is attributable, as the case maybe, to the income or the capital which may be taxed in that

other Contracting State.

2. Where, in accordance with any provision of this Agreement,income derived or capital owned by a resident of a ContractingState is exempted from tax in that Contracting State, such Statemay nevertheless, in calculating the amount of tax on theremaining income or capital of such a resident, take intoaccount the exempted income or capital.

A r t i c l e 25

NON-DISCRIMINATION

1. Nationals of a Contracting State shall not be subjected inthe other Contracting State to any taxation or any requirementconnected therewith, which is other or more burdensome than thetaxation and connected requirements to which nationals of thatother Contracting State in the same circumstances are or may besubjected.

2. The taxation on a permanent establishment which an enterpriseof a Contracting State has in the other Contracting State shallnot be less favourably levied in that other Contracting State

than the taxation levied on enterprises of that other Statecarrying on the same activities.

3. Nothing in this Article shall be construed as obliging aContracting State to grant to residents of the other ContractingState any personal allowances, reliefs and reductions fortaxation purposes on account of civil status or familyresponsibilities which it grants to its own residents.

4. Enterprises of a Contracting State, the capital of whichis wholly or partly owned or controlled, directly or indirectly,by one or more residents of the other Contracting State, shall


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not be subjected in the first-mentioned State to any taxation orany requirement connected therewith which is other or moreburdensome than the taxation and connected requirements to whichother similar enterprises of the first-mentioned State are ormay be subjected.

A r t i c l e 26

MUTUAL AGREEMENT PROCEDURE

1. Where a person considers that the actions of one or both ofthe Contracting States result or will result for him in taxationnot in accordance with the provisions of this Agreement, he may,irrespective of the remedies provided by the domestic law ofthose States, present his case to the competent authority of theContracting State of which he is a resident or, if his case

comes under paragraph 1 of Article 25, to that of theContracting State of which he is a national. The case must bepresented within three years from the first notification of theaction resulting in taxation not in accordance with theprovisions of this Agreement.

2. The competent authority shall endeavour, if the objectionappears to it to be justified and if it is not itself able toarrive at a satisfactory solution, to resolve the case by mutualagreement with the competent authority of the other ContractingState, with a view to the avoidance of taxation which is not inaccordance with the Agreement.

3. The competent authorities of the Contracting States shallendeavour to resolve by mutual agreement any difficulties ordoubts arising as to the interpretation or application of theAgreement. They may also consult together for the elimination ofdouble taxation in cases not provided for in the Agreement.

4. A Contracting State shall not, after the expiry of the timelimits provided in its national laws and, in any case, afterfive years from the end of the taxable period in which theincome connected has accrued, increase the tax base of aresident of either of the Contracting States by includingtherein items of income which have also been charged to tax in

the other Contracting State. This paragraph shall not apply inthe case of fraud, wilful default or neglect.

A r t i c l e 27

EXCHANGE OF INFORMATION

1. The competent authorities of the Contracting States shallexchange such information as is necessary for carrying out the


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provisions of this Agreement or of the domestic laws of theContracting States concerning taxes covered by the Agreementinsofar as the taxation thereunder is not contrary to theAgreement, in particular for the prevention of fraud or evasionof such taxes. The exchange of information is not restricted byArticle 1. Any information received by a Contracting State shall

be treated as secret in the same manner as information obtainedunder the domestic laws of that State. However, if theinformation is originally regarded as secret in the transmittingState it shall be disclosed only to persons or authorities(including Courts and administrative bodies) involved in theassessment or collection of, the enforcement or prosecution inrespect of, or the determination of appeals in relation to, thetaxes which are subject of the Agreement. Such persons orauthorities shall use the information only for such purposes butmay disclose the information in public court proceedings or injudicial decisions.

2. In no case shall the provisions of paragraph 1 be construedso as to impose on a Contracting State the obligation:

(a) to carry out administrative measures at variance with thelaws and administrative practice of that or of the otherContracting State;

(b) to supply information which is not obtainable under thelaws or in the normal course of the administration of thator of the other Contracting State;

(c) to supply information which would disclose any trade,business, industrial, commercial or professional secret ortrade process, or information, the disclosure of whichwould be contrary to public policy (ordre public).

A r t i c l e 28

DIPLOMATIC AGENTS AND CONSULAR OFFICERS

Nothing in this Agreement shall affect the fiscalprivileges of diplomatic agents or consular officers under thegeneral rules of international law or under the provisions of

special agreements.

A r t i c l e 29

MISCELLANEOUS RULES

1. Subject to the provisions of Article 25, this Agreement shallnot be construed to restrict in any manner any exemption,


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deduction, credit, or other allowance now or hereafter accorded:

(a) by the laws of a Contracting State in the determinationof the tax imposed by that State, or

(b) by any other Agreement entered into by a Contracting

State.

2. Nothing in the Agreement shall be construed as preventing theapplication of the provisions of the domestic law of eachContracting States concerning the taxation of income of personsin respect of their participation in non resident companies orconcerning fiscal evasion.

3. The competent authorities of the Contracting States maycommunicate with each other directly for the purpose of applyingthe Agreement.

A r t i c l e 30

ENTRY INTO FORCE

1. This Agreement shall enter into force on the date of theexchange of the last notification confirming the completion ofthe legal procedures necessary to its entry into force in thetwo Contracting States.

2. After the entry into force of this Agreement its provisionsshall have effect for the first time:

(a) in respect of tax withheld at the source, on amountspaid or credited on or after the first day of Januaryin the calendar year following that in which the

Agreement enters into force; and

(b) in respect of other taxes for taxation years beginningon or after the first day of January in the calendaryear following that in which the Agreement enters intoforce.

A r t i c l e 31

TERMINATION

This Agreement shall continue in effect indefinitely buteither Contracting State may, on or before June 30 in anycalendar year after the year in which it enters into force, giveto the other Contracting State a notice of termination inwriting through diplomatic channels.

In such event, the Agreement shall cease to have effect:


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(a) in respect of tax withheld at the source, on amountspaid or credited on or after the first day of Januaryin the calendar year following that in which the noticeof termination has been given; and

(b) in respect of other taxes, for taxation years beginningon or after the first day of January in the calendaryear following that in which the notice of terminationis given.

IN WITNESS whereof the undersigned, duly authorised to thateffect, have signed this Agreement.

Done at ... . .. on the ...... day of....., 2004, in duplicatein the Albanian, Arabic and English languages, all texts beingequally authentic. In case of divergence of interpretation, the

English text shall prevail.

FOR THE GOVERNMENT FOR THE GOVERNMENT

OF THE ARAB REPUBLIC OF EGYPT OF THE REPUBLIC OF ALBANIA

Documents

DTC agreement between Egypt and Albania