Page 741 - MAIN

ΕΠΙΣΗΜΟΣ ΕΦΗΜΕΡΙΣ ΤΗΣ 9ης IΟΥΛIΟΥ 1982 665
(b) Where sucll income ί!) a dividend paid
by a α)mΡanΥ which is a I'esident of
France Ιο a company wh!ichis a resident
of Cyprus and which owns din~otly at
least 25 per cent of the French company.
the credit ~haH take ίηto account. ίη
addition Ιο any Frencll tax οη dividend~.
the French corporation tax payable ίη
respect of ί.ιs prof.its by the oompany
paying the dividend .
Β. Ιη the case of France:
(a) Income other than tha:t referred Ιο ίn
sub-paragraph (b) below ~hall be exempt
ΓΙΌm the Frenc11 taxes ref'erred t() ίη
sub-paragrapl1 (a) of paragl'aph 3 of
Article 2 if the income ί~ taxable ΙΩ
C)'prus under this Convention.
(b) lnc ~)me referred to ίη Articles 10. Ι Ι.
12. 15. 17 and 18 receίved from Cyprus
may be taxed ίη France ίπ accordancc
with tlle provisions of thes :.: Λrιίι:Ιcs. οπ
tIleir gross an1oun't . The Cyprus tax
levίed or payable οη such income
entit1es residents of France t() a tax
credit corresponding ιο the amount of
the Cyρrus tax but which shall not
exc~~d tIle amoLlnt of French tax aErl–
b:,table ιο s :. ιι:ίι ·income. S ~JCoIl credit
shaIl be alJowed ag-ainst taxes referred
Ιο ίη sub-ρaragraph (a) of paragraph 3
σf Article 2, ίη the taxable bases of wh·jch
such income is included.
(c) For the purposes of the foregoing sub–
paragraph (b), theterm "Cyprus tax
payable" shal1 be deemed to include:
(ί) any amount which would have been
payable as Cyprus tax for any year
but for an exemption ΟΓ reduction
of tax granted for that year ΟΓ any
part thereof under Sect-ion 1Ο of the
Income Tax Laws 1961 Ιο 1979 of
Cyprus (50 far as ίι was ίη force οη,
and has not been modified since the
date of signature of this Convention
or has been modified only ίη minoT
respects sσ a'" ;,1:,+ ~oaffect its
general character). ίη any case
where the ·interest ίη queStion is
certified by the comρetent authority
of Cyprus as OOίη~ payable ίη
respect of a loan made for the pur–
poses of promoting development ίη
Cyprus; or
(ίί) ίη the case of any approved capίta.I
expenditure. any amount which
wou]d have been payab]e as Cyprus
tax but for an investment deduction
allowed under Section 12 (2) (b) or
(c) of the Cyprus Income Tax Laws
1961 to 1979 (50 far as they were
. ίη force on, and have not been
modified since. ·the date of this
Convention ΟΓ have been mod~fied
on]y ίη m'inor respects so as ηot to
affect their generaI charaoter). For
the purposes οί tMs sub-paragraph
the term "approνed capiItal expen–
diture" means capital expenditure
whichis incurred. οη ΟΓ after the
date of signature οί this Convention
and not j'aιter ,than 5 years after the
commencement of the trade ΟΤ
business ίη question. by an enter–
prise wholIy ' or mainly engaged in
the hote] business ΟΓ ίη activitieιs
falling within one οί the folIow1jng
c]asses:
-manufacturing. assembling. or
prΌCeSsing;
--construction, ci νίΙ engineering or
ship-buHding; o r
- e1ectrioity. hyd,rauI·ic power. gas
σΓ wate'r supply;
and which is certified by the com–
pe'tent aut'hority σf Cyprus as incur–
red for the purposes of promoting
development ίη Cyprus;
( ίί ί) however, the tax credit allowed οη
dividends paιid out σf income re–
Iieved frσm Cyprus Tax under the
Ρrσvisίσns of the foregoing .... ub–
paragraph (ίί). shall ηοΙ exceed Ι 5
pel' cent οί the net amount of such
dividends.
(d) Notwithstanding the provi s:ions of sub–
paragraphs (a) French tax is computed
σπ income chargeable ίη France by
vίΓΙUe σ ; ' this Convention at the rat~
aΡΡrσΡrίate Ιο the total of the income
clnrgcablc ίη accordance with the French
I:nvs.
.., Where under any provi sion of th'is Con–
Υ ι'π ι ϊ οη. income is reJ.ieved from tax ·ίη a State
and under tIle law ίη force ίη the other State,
a ~~ rs() n ίη respect of the said income, is
s ubj ~c t ω tax by rc Ierenc~ Ιο the amo unt
thereof Wllich is effect'ively remitted to, σ Γ
I'eceived ίη that other State and ηοΙ by referenc~
ω tlle fllll amo ~ lnt thereof. then the relief to be
a)Jσwed under this Convention ίη the first–
mentioned State shall apply only ιο so much οί
the jn ~om ~ as is cffectively remitted ω σΓ
received ίπ the other State.
ARTICLE 26
NON-DrSCRIMINA ΤΙΟΝ
ι . Nationals σf a State shaH ηοΙ be subjected
ίη the other State Ιο any taxation or any requi–
rement connected therewith, which is other ΟΓ
Inore burdensome th'an the taxation and con–
nected requirements to Which nationals of that
othcr State ίη the same oi'rcumstances are or
may be subjected. This proV'ision shall. notwith–
standing the provisions of Article 1, aJso appIy
tσ persons who are not residents of one or both
σf the States.
2. Τhe term "nationals" means:
(a) all individuals possessing the na~ionality
of a State;
(b) a)J legal persons, partnerS1hips and asso–
ciations deriving thei'r status as such
from the laws ίη force ίη a State.
3. Stateless persons who are residents of a
State shall ηοΙ be subjected ϊη the ot,her State
tσ any taxation ΟΓ any requ,irement connected
therewith which is other or more burdensome
than the taxation and connected requirements Ιο
which nationals of th·at other State ίη the same
circumstances are σΓ may be subjecιed.
4. The taxation οη a peπnanent esta,blish·ment
which an enterprise of aState ~has ίη the other
State shall not be ]ess favourabIy lev,ied ίη that
otller State tIlan the taxation Ievied οη enter–
prise of that other State carrying οη the s'anle
activities. This provision shall not be construed
as obliging a State Ιο grant Ιο residents οί the
other State any personal allowances, reliefs and
reductions for taxation purposes οη account of
civil status ΟΓ famiIy responsibiJ.ities which ίι
gt·ants Ιο its own res'idents.
5. Except where the provisions οί Artic]e 9.
paragraph 7 of Article 11. ΟΓ paragraph 7 or
Article 12, apιp] Υ, interest, roya1ties and ot:her
disbursements paid by an enterpri se of a 8tate
to a resident of the σt'her State sh·al1. for t:he
purpose of determining the taxabIe profits of
such ent~rprise. be doouctίble under ιhe same
conditions as if they had been patid Ιο a resi-