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ΕΠΙΣΗΜΟΣ ΕΦΗΜΕΡΙΣ ΤΗΣ 9ης IΟΥΛIΟΥ
1982
661
3.
Τhe proVlsιons
of pal'agraph 1 sI1all apply
10
in~ome
derived from thedirect use, letHng.
or use
ίη
any ot'}ler
f'Orm
of immovable pro–
perty.
4.
Tlle provisions of paragraphs
1
and
3
~hall
also apply
ιο
the income from immovable pro–
p~ΓΙy οΥ
an enterpI'isoe and
1'0
income from
immovable
ΡrορertΥ lIs~d ΙΌΓ
the pel'formance
σϊ indep~ndent
personal
s~rνices.
ARΤICLE
7
BUS1NESS
PROFIΤS
Ι. Th~
profits of an enterprise of a Sta<te
shall be taxable
οηlΥ ίη
t'11at State unless the
enrerprise carries
ση
bu'siness
ίη
the other State
through a
p~rmanent
cstablishment sitllated
therein. If the enterprise carries
οη
busines:.; as
aforesaid, the
profi~ οΥ
the enterprise may be
taxed
,ίη ιll~
other State but only so much
ot'
tIlem as is attributable
tσ
the permanent
establishment.
2.
Subject to the provisions of paragraph
3.
whe,re an enrerprise of a State carries
ση
busi–
ness
ίη
the otl1er State through
a
permanent
e, ..
tablishment situated therein, there shall
ίη
cach State be attributed
to
that
ρermanent
estabEsllment the profirs \\Ih'ich
ίι
might bc
expecled
ιο
make if
ίι
were a dis.tinct and sepa–
rat~
enterpl'isc cngaged
ίη
the same
σΓ
similar
activlties under the same
σΓ
sim'ilar
cσnd,ίt-ions
and dealing wholly independenrly with the
enterprise of which
ίι
is a
ρermanent
establish–
ment.
3.
For determining the profits of a permanent
establishment, there sha1l be allowed as deductions
expenses which are incurred for the purposes of
the permanent establishment, including execu,tive
and general administrative expenses so incu rred.
whether
ίη
the State
ίη
wh'ich the permanent
establishment is situated
ΟΓ
elsewhere.
4. Insofar
as
ίι
has been customary
ίη
a State
Ιο
determine the profits
Ιο
be attri'buted
Ιο
a
permanent establishment
οη
the basis of an
apportionment of the
ισtal
profits of the enter–
prise
Ιο
its various parts, nothing
ίη
paragraph
2
shall preclude that State from determining the
profits
ιο
be taxed by such an apportionment as
may be customary; the method of apportionment
adopted shaII, however, be suoh that the resuJt
shalI be
ίη
accordance with the principJes con–
tained
ίη
thjs Article.
5.
Νο
profits sha]] be
attrίbu.ιed Ιο
a permanent
establisllment by reason of the mere purchase
by that permanent establishment of goods
σΓ
merchandise for the enterprise.
6.
For the purposes of the preceding para–
graphs, the
profίts ιο
be attri,buted
Ιο
the per–
manent establishment shaJI be determinedby the
same method year by year unless there is good
and sufficient reason to the con'tra'ry.
7.
Where profits include items of income
which are dealt with separate]y
'ίη
other Articles
of this Convention, then the provisions of those
Articles shal1
ησΙ
be affected by tJhe provisi'Ons
of th,is Article.
ARTICLE 8
SHIPPING AND AIR TRANSPOR
Τ
1. Profi,t's f,rom the
oρeraιbion οί
'sh:ips or a,ir–
cmfit
ίη in'temaitιiona)
traffic shall be 1JaX'a'b.Je only
ίη
the State
'ίη
whi ch 'Vhe place of effective
managemenlt:
οί
the enterprise
i~s ·
sίituaιted.
2. Notwhlistanding the foregoing
proV\i'sιioπιs,
pro1iitsfrom the opera1Jion
οί
'snips
ininlterna~io
na) tmffic derived
συ
a oom'pany or pa'rtnersh'ip
whlioh i,s a residen1t of Cypru's, more thlan 25 per
cenιt σf
,uhe
αιpίιt:aI οί
whiohis
σwned,
diteot:ly or
indirectJly, by
persόns
whlO are
ηοτ
res1idents of
Cypru~,
m'ay
be
taxedin France, if the company
or
parιtnersιh,ip
has
ίη
F,rance a
ρe,rmanent
es,ra'b.Jιίsh 'ment.
3.
Η
lhe placeOlf
effeo~jνe
management
σf
a
~hIipping
enterPf1ise
rs
ab'Oard a ship, then
ίι
shalI
be deemed
to
be
sιiItuat'ed ίn
tJhe
Staιte ίη
which
the
hΌme h'3Jrοου Ι'
of the
s}]~p
'is situat'e:d, or, if
vhere is
ηο
sudh home Ilarbour.
ίη
lhe
Sιtate
of
Wll lich L'he operaJtor of the
sιhip
is a resIident.
4.
TIhe
provi'sιions
of a
ρaragraph
1
sh,all al'so
apply to proHts from the pa:rticipalbion
ίη
a
ροοl,
a
joint business or an internationaI operating
agency.
ARTICLE
9
ASSOCIAΤED ENΤERP'RlSES
WΙΙ';Γ~-
(a) an enterprise of a State
paιr-ticipaιtes
direotly or indireotly
ίη
tJhe management,
con1trol or capi,tal of an enterpri'se of the
o'rher S't,ate,
ΟΓ
(b) the same persons partioipa.te directly
ΟΓ
indirooLly
ίη
the managemenJt, oontrol or
caρίιaΙ
of an enterpri'se
of
a State and an
enterprise of the
o~her
State,
and
ίη
either
ca~e
conditions are m'ade
ΟΓ
im–
posed between the two enJterprises
ίη
their com–
mercial or
finaηcial
rela'tions wh,i'ch d'iffer from
those wh'ich would be made between
indeρendent
enterprises. then any
prot1ί' tιs
which
wou1d,
but
for
~hO'se
conditions. h'ave accruoo
Ιο
onoe
οί
the
enterprises. but by reason
σf
those oonditions,
h'ave
ησι
so accrued, may be included
ίη
the
profits of t'hat enterprise andtaxed acct>rdingly.
ARTICLE
10
DIVIDENDS
1. Dividends pa'id by a company
wιmoh
is a
re.sident of a State
Ιο
a resident of the other State
mιay
be taxed
ίη
that ather
State.
2.
However, such
dί\Λideηdιs mιay
al'SO be
,taxed
ίη
th'e State
οί whJίch
the oompany
pa.yiιng
tbe
dividend's is a resident and
'aα::ording Ι'Ο
the laws
οί
tJhat State, bu1:
ί!
1Jhe reoipient is tlhe benef,ioial
owner of the
dιivi'dends
thoe tax
so
chaιrged sιhall
ηοΙ
exceoo:
(a)
10
per cent
of
the gross amoun1:
οί
the
diVιidendιs ίί
the benefioial owner
is
a
crnnpany (other
~ban
a parttnership)
which holds dIrectly at least
10
per cent
of
~he
capirtal
σί
the
comρany pa~ng
the
divid'endιs;
(Ib)
15
per cent of
tOO
gross amount of the
d'i
yιj,d'end'S ί η
aH
αt!her
oares.
Tlh~s
paragmph s.h'a,}}
ησt
affect the taxa1Jion
οί
the
oomρaηy ίη
respeot of t'he
pro~its
out
οί wh~ch
thoe d,iV1idends a,re paid.
3.
Notwi'~hιstand'ing ι.he provi'~ions
of pa,ragraph
2,
a:s ]ong a's Cyprus does
ησΙ
impO'se a tax
οη
dljy.idend~ ίη adldιi!tJion
to the tax ohargeable
ση
the
profJiJts
ΟΓ
inoome of a
oompany,divιidends
paid
by a company whioh is a resi,dent of Cyprus
Ισ
a resident
σf
France shaIl b'e exempt from any
tax inCYPI1US wh,ich may be oha:rgea:bloe
οη
divi–
dends
ίη
addltion
tΌ
thetax ch;argeable
ση
the
profi·ts
ΌΓ
income
σf
the oom'pany.
4. The tenn "d'iv,idends" as used
ίη
t'his Art'icle
means income from sha:res, "joui'ssance" shares
or "joU!iJs'sance" rights, m,ining shares, foundel'S'
sIhlares or other f1igh,ts, nOlt
beίng
debt-claims.
pa:l1Vioi,patJing
ίη
pro1Wts, a:s well asinoome
~l\)ffi
obh'er corporate rights wmch is subjected to
tll~
same
tιa~aJti'OD
treatment
aJS
income from shares
by the ]a'ws of the
Staιte
ofwh,ioh tt\e
roηιρaηy
m'akJing the
dίsΙrίbut!iΌη
is a
resίdenΙ,~