Page 70 - 1983

ΕΠΙΣΗΜΗ ΕΦΗΜΕΡΙΔΑ ΤΗΣ 14ης ΙΑΝΟΥΑΡΙΟΥ 1983 13
Taxation οί Income
Article 6
Income from Immova!ble Property
1. Income f rom immovaIble property shaH be
t"axed ίη the Contracting State ίη which that
property is situated.
2. The term "immovable property" shallhave
the meaning which ίι has under the law of the
Contracting State ίη which the property ίη
question is situated. Ships and aircraft shaIl not
be regarded as immovable property.
Article 7
Profits
1. The profits οί an enterprise of a Contracting
State shall be taxable only ίη that State, unless
the enterpήse carries οη business ίη the other
Contracting State through a permanent establίsh­
ment situated therein. If the enterΡήse carήes οη
business as aforesaid, the profits of the enterpήse
may be taxed ίη the other State but only so much
οί them as is attributa'ble Ιο that permanent
establisllment.
2. Ιη detennining the profits of a permanent
establishment, there shall be allowed as de–
ductions expenses which are incurred for the
purposes of the permanent estabHshment includ–
ing executive and general administrative expenses
so incurred, whether ίη the State· ίη which the
pennanent establishment is situated or elsew·here.
3. Νο profits sha1l be attributed ιο a perma–
nent establishment by reason οί the mere pur–
chase by that permanent establishment of mer–
chandise οτ goods for the eηterpήse.
4. For the purpose οί the preceding paragraphs.
the profits to be attήbuted Ιο the permanent
establishment shall be deterιnined by the same
method year by year, unless there is good and
sufficient reason Ιο the contrary.
5. Where profits include items οί income which
are dealt with separately ίη other Articles οί this
Convention. then the provisions οί those Articles
shall ηοΙ be affected by the provisions οί this
Article.
Article 8
Shipping and Αίτ Transport
1. Profits from the operation οί ships or air–
craft ίη intemational traffic shall be taxable only
ίη the Contracting State ίη which the place οί
effective management of the enterprise is situated.
This shall also apply Ιο profits from the partici–
pation ίη a ροοl. a joint business or an intema–
tional operating agency.
2. The provisions οί paragraph 1 sha1l aIso
apply Ιο profits obtained by the pernιanent re–
presentatIon οί shipping or aIr transport enter–
prises of a Contracting State ίη the other Con–
tactIng State.
Article 9
DiVIidends
1. Dividends paid by a company which is a
resident οί a Contracting State to a resident οί
the other Contracting State may be taxed only
ίη that other State.
2. Ιη the case of the Republic of C}1Jrus. how–
ever. diVIidends paid by a company which is a
resident of the Republίc οί Cyprus to a resident
qf the German Democratic Republic sha:H be
exempt from any tax ίη the RepυbIic of Cyprus
which maΥ be chargeable οη dividends ίη addi–
tίoη Ιο the tax chargea:ble οη the profits or ίη­
come of the oompany.
Artiole 10
Interest
1. lnterest arising ίη a Oontracting State and
paid to a resident οί the other ContractIng State
may be taxed only ίη that other State.
2. The provisions of paragraph 1 shall ηοΙ
apply ίί ttle recipient of the interest. being a re–
sident οί a Contracting State, carries οη business
ίη the other Contracting State ίη which the
interest arises, through a ρermanent establishment
situated therein, or perfonns ίη that other State
independent personal services from a fixed base
situated therein, and the debt-claim ίη respect οί
wh'ich the interest is paid is effectively connected
with such permanent establish'ment or fixed base.
Ιη such case the provisions of Article 7 or Article
Ι 2, as the case may be, shall apply.
3. Interest shall be deemed to arise ίη a Con–
tracting State when the payer is that State itseIf
or a res'ident of that State. Where however, the
person paying the interest, whether he is a resi–
dent of a Contracting State or ηοΙ, has ίη a Con–
tracting State a permanent esta;blishment or a
fixed base ίπ connection with which the indebted–
ness οη which the interest is paid was incurred,
and such interest is bome by such permanent
establishment or fixed base, then such interest
shall be deemed Ιο arise ίη the Contracting State
ίη which the permanent establishment or fixed
base is situated.
ArticIe 11
Royalties
1. Royalties arising ίη a Contracting State and
paid to a resident οί the other Contracting State
sha11 be taxable only ίη that other State.
2. The term "royalties" as used ίη this Article
means payments of any kind received as a consi–
deration for the use οί, or the right Ιο use. any
copyright of literary. artistic or scientific work,
including cinematograph fίJms, any patent, trade–
mark, design or model, plan. formula or process.
or for the use of, or the right to use, industrial,
commercial or scientific equipment. or for ίη­
forιnation conceming industrial, commercial.
technical, technological or scientific eΧΡeήence.
3. The provisions οί paragraph 1 sha11 not
apply if the recίpient of the roya.lties, being a
resident οί a Contracting State. carήes οη busi–
ness ίn the other Contracting State. ίη which the
royalties arise, through a permanent establishment
s'ituated therein, or perforιns ίη that other State
independent personaI services from a fixed base
situated therein, and the ήghts or property in
respect of which the royalties are pa.id are effe–
ctively connnected with su'ch perιnanent
estabHshment or fixed base. In such case the
provisions of Article 7 or Article 12, as the case
may be, shall apply.
Article 12
Indeρendent PersonaI Services
1. Income derived by a resident of a Contract–
ing State ίη respect of professional services or
other simi1ar activities of an independent chara–
cter shall be taxable οηlΥ ίη that State unless he
has a fixed base regularly available to him ίη the
other ContractIng State for the purpose οί ρer­
forming his activities. If he has such a fixed base,
the income may be taxed ίη the other Contracting
State but οηlΥ so much οί it as is attήbutabΙe to
that fixed base.
2. The term "professionaI services" includes
especial1y independent scientific, literary, artistic,
educationaI or teaohing activities as weIl as the
independent activities of physicians. lawyers,
engineers. architects, dentists and accountants.