Subject NOT available

7

9

(Pmlits) Smtax Act, 1964 (7 of 1964) the Cent- ril Government hereby directs that all the pro- visions of the said Convention, shall be given efhel to '

CONVENTION

BETWEEN

riic Government of the Republic of India and The Government of Mauritius for The avoidance of double taxation and the pre- vention of fiscal evasion with respect to Taxes of Income and Capital Gains

MINISTRY OF FINANCE

(Department of Revenue)

(FOREIGN TAX DIVISION)

New Delhi, the 6th December, 1983

NOTIFICATION

INC OME TAX

G.S.R. 97.0(E).—Whereas the annexed Con- vention between the Government of the Republic of India and the Governnvnt of Mauritius for the avoidanrc of double taxation and the prevention of fiscal evasion with resjvet to taxes on income and capital gains a.id JW the encouragement of mutual trade and investment has corns 'into force on the n:it'fication ' -' hc¹b the Contracting States to each nth; r of r"-i)pl,Von of tru procedures required by rlr:r i^snrrlivr hws, as required by Article V of irr r,?.id C:-rvft;oii;

Now, therefore, in ex?rcisc of the powers con- f e r ,^ by section <-H) of the Income-tax Act. 1961 (43 of I°6M and :-CL'WI 24A of the Companies The Government of the Republic of India and Ihe Government of Mauritius

DES1RTNG to conclude a Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains and for the encouragement of mutual trade and investment

I-IAVE AGREED as follows :

CHAPTER 1

SCOPE OF THE CONVENTION

Article 1

PERSON\L SCOPE

This Convention shall apply to persons who arc residents of one or both of the Contracting States.

Article 2

TVXES COVERPD

1. The existing taxes to which this Conven- tion shall apply arc :

(a) in the case of India :

(') the income-tax including any sur- charge thereon imposed under the Tncome-tax Act, 1961 (43 of 1961);

(ii) the surtax imposed under the Com- panies (Profits) Surtax Act, 1964 (7 of 1964); (hereinafter referred to as "Indian tax").

(b) in the case of Mauritius :

the income tax (hereinafter referred to as "Mauritius tax").

2. This Convention shall also apply to any Helical or r.rbtitantially similar taxes which are imposed hy either Contracting State after the dnte of Fipnaturc of the present Convention in addition to, or in place of. the existing taxes re- ferred io ;n prratrnph 1 of this Article.

3. The comoctent authorities of the Contract- ing States shall notify to each other any signifi-

cant changes which are made in then respective taxation laws.

CHAPTER II

DEFINITIONS

Article 3

General Definition,

1. For the purposes of this Convention, unless the context otherwise requires :

II

a company or a body corporate under the taxation laws in force in the respec- tive Contracting States;

(2) The terms 'cntorprl-.j "..i a Contracting State' and 'enterprise oL" the other Con- tracting Stat^' liiCJu ]\.'_,peciKciy an in- dustrial, mining, commercial, planta- tion or agricultural enterprise or simi- lar undertaking carried on by a resident of a Contracting State and an indus- trial, mining, commercial, plantation or agricultural enterprise or similar under- taking carried on by a resident of the other Contracting State;

(h) (.lie umn '•^••ii:r?'cnl iUhhcTity¹ means in th'j case of India, I;ID Central Govern- ment in the Ministry of Finance (De- partment el Revenue) ur their autho- rised representative; and in the case of Mauritius, the Commissioner of In- come TTix or his authorised represen- tative;

RESIDENTS

.\

\ V ! I L Y.

• • ''

, : ,;

, •• o v i '*

. ! •: - . •!

W i >- ! > ;/ \ L - ; t - of\

purposes of this Convention shall be determined in accordance with the following rules:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to hini; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident o( the Con- tracting State with which his personal and economic relations are closer (hereinafter referred to as his "centre of vital interests");

(b) if the Contracting State in which he has his centre of vital interest cannot be determined, or il he does not have a permanent home available to him in cither Contracting State, he shall be deemed to be a resident of the Contract- ing State in v^ich he lias an habitual abode;

(c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

3. Where by reason of the provisions of para- graph 1, a person other than an individual is a resident of both the Contracting States, then it shall be deemed to be a resident of the Contract- ing State in which its place of effective manage- ment is situated.

Article 5

PERMANENT ESTABLISHMENT .

1. For the purposes of this Convention, the term 'permanent establishment¹ means a fixed place of business through which the business of the enterprise is wholly or partly carried on.

2. The term 'permanent establishment' shall in-

clude:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(c) a workshop;

(f) a warehouse, in relation to a person pro- viding storage facilities for others;

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

(h) a farm, plantation or other place where agricultural, forestry, plantation or re- lated activities are cairied on;

(i) a building site or construction or ;iv-sein- bly project or supervisory activities in connnection therewith, where ••uch site, project or supervisory activity continues for a period of more than nine months.

3. Notwithstanding the preceding provisions of this Article, the term 'permanent establishment' shall be deemed not to include:

(a) the use of facilities solely for the pur- pose of storage or display of mcrchand- dise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enter- prise solely for the purpose of storage or display;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) he maintenance of a fixed place of busi- ness solely for the purpose of purchas- ing goods or merchandise or for collect- ing information for the enterprise;

(e) the maintenance of a fixed place of

business solely—

(i) for the purpose of advertising,

(ii) for the supply of information,

(iii) for scientific research, or

(iv) for similar activities.

which have a preparatory or auxiliary character for the enterprise.

4. Notwithstanding the provisions of paragraphs 1 and 2 of this Article, a person acting in a Contracting State for or on behalf of an enter- prise of the other Contracting State (other than an agent of an independent status to whom the provisions of paragraph 5 apply) shall be deem- ed to be a permanent establishment of that enter- prise in the first-mentioned State if:

(i) he has and habitually exercises in that first mentioned State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise; or

(ii) he habitually mointains in that first-men- tioned State a stock of goods or mer- chandise belonging to the enterprise

from which he regularly lumis orders , on behalf of the enterprise.

5. An enerprise of a Contracting St;

6. The fact that a company, which is a resident of a Contracting Slate coniiols or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other Contracting Staie (whether through a permanent establishment or otherwise) shall not, of itself, constitute either company a perma- nent establishment of the other.

CHAPTER fll TAXATION OF INCOME

Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income from immovable property may be taxed in the Contracting State in which such property is situated.

2. The term "immovable property" shall be denned in accordance with the law and usage of the Contracting State in which the property is situated. The term shall in any cass include property accessory to immovable property, live- stock and equipment used in agriculture and fore- stry, rights to which the provisions of general law respecting landed propetty apply, usufruct of im- movable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineial deposits, oilwells, quarries and other places of extraction of natu- ral resources, ships, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable pro- perty of an enterprise and to income from "im- movable 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

13

enterprise carries on business in the other Con- tracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establish- ment.

2. Subject to the provisions of paragraph 3 of this Article, where an enterprise of a Contracting State carries on business in the 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 distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly indepen- dently with the enterprise of which it is a per- manent establishment. Where the correct amount of profits attributable to a permanent establish- ment cannot be readily determined or the deter- mination thereof presents exceptional difficulties, the profits attributable to the permanent estab- lishment may be estimated on a reasonable basis.

3 s In determining the profits of a permanent establishment, there shall be allowed as deduc- tions expenses which are incurred for the purposes of the business of the permanent establishment including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a perma- nent establishment by reason of the mere purchase by that permanent establishment of goods or mer- chandise for the enterprise.

5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent estab- lishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6. 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 from the operation of ships or air- craft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

2. If the place of effective management of a shipping enterprise is abroad a ship^ then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated,

or, if there is no such home harbour, in the Con- tracting State of which the operator of the ship is resident.

3. The provisions of paragraph 1 of this Arti- cle shall also apply to profits from the participa- tion in a pool, a joint business or an irternational operating agency.

4. For the purposes of paragraph 1, interest on funds connected with the operation of ships or aircraft in international traffic shall be regarded as profits from the operation of such ships or air- craft, and the provisions of Article 11 $hall not apply in relation to such interest.

5. The term "operation of ships or aircraft" shall mean business of transportation of persons, mail, livestock or goods, carried on by the ow- ners or lessees or charterers of the ships or air- craft, including the sale of tickets for such trans- portation on behalf of other enterprises, the in- cidental lease of ships or aircraft and any other activity directly connected with such transportation.

Article 9

ASSOCIATED ENTERPRISES

Where:

(a) an enterprise of a Contracting State parti- cipates directly or indirectly in the ma- nagement, control or capital of an enter- prise of the other Contracting State, or

(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Con- tracting State,

and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enter- prises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not . so accrued, may be included in the profits of that enterprise and taxed accordingly.

Article 10

DIVIDENDS

1. Dividends paid by a company whicft is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company pay- ing the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charg- ed shall not exceed:

(a) five per cent of the gross amount of the dividends if the beneficial owner is a company which helds directly at least 10 per cent of the capital ot the com- pany paying the dividends;

(b) fifteen per cent of the gross amount of

the dividends in all other cases.

This paragraph shall not axfect the taxation of the company in respect of the profits out of which the dividends are paid.

3. Notwithstanding the provisions of paragraph 2, dividends paid by a company which is a resi- dent of Mauritius to a resident of India may be taxed in Mauritius and according to the laws of Mauritius, as long as dividends paid by companies which are residents of Mauritius are allowed as deductible expenses for determining their taxable profits. However, the tax charged shall not exceed the rate of the Mauritius tax on profits of the com- pany paying the dividends.

4. The term 'dividends' as used in this Article means income from shares or other rights, not be- ing debt-claims, participating in profits, as well as income from other corporate rights which is sub- jected to the same taxation treatment as income from shares by the laws of the Contracting State of which the company making the distribution is a resident.

5. The provisions of paragraphs 1, 2 and 3 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated there- in or performs in that other State independent personal sevices from a fixed base situated therein and the holding in respect of which the dividends are paid is effectively connected with such perma- nent establishment or fixed base. In such a case, the provisions 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 other Contracting State, that other State may not impose any tax on the dividends paid by the company, except in so far as such dividends are paid to a resident of that other State or in so far as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's un- distributed profits to a tax on the company's un- distributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11

INTEREST

1. Interest arising in a Coiuractiiv; Staie and paid to ;i resident of ii:-: oi'r-i CoiUraUinf, SIJ>** may be taxed in that other Stale.

2. However, subject to the provisions of para- graphs 3 and 4 of this Article, such interest may also be taxed in the Contracting Slaic in which it arises and according to the LT./S of that 'Sidle.

3. Interest arising in a Contracting State shall be exempt from tax in thai S'.aie provided it is derived and beneficially owned by :

(a) the Cruvermn^ri] or a local ai.U!iorit\ of

the other Contracting Slate ;

(b) any agency or entity created or orga- nised by the Government of t-ic otnei Contracting State ; or

(c) any bank carrying on a bonafiic bdiw.inf, business which is a resident ol: the other Contracting State.

4. Interest arising in a Contracting State shall be exempt from tax in that Contracting State lo the extent approved by the Government of that State if it is derived and beneficially owned by any person (other than a prvson referred to in paragraph 3) who is a resident of the other Con- tracting State provided that ihe transaction "iving rise to the debt-claim has been approved in this regard by the Government of th? frst-rr.rntinned Contracting State.

5. The term 'interest' as med in this Article means income from debt-cbin-p of every kind, whether or not secured by mortgage, and wheiVr or not carrying a right to participate in t!ie debtor's profits, and, in particular, income from Govern- ment securities and income from boads or deben- tures, including premiums and prizes nUnching (n such securities, bonds or debenture. P a r i ty charges for late payment shall not be rcganVd as interest for the purpose of this A'lic'e.

16

State itself, a political sub-division, a local autho- rity or a resident of lhat Stale. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by that permanent establishment, then such interest shall be deemed to arise in the Con- tracting State in which the permanent establish- ment is situated.

8. Where, by leason of a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, 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 recipient in the absence of such relation- ship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to (he 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 in that othsr State.

2. However, such royalties may also be taxed in the Contracting State in which they arise, and according to the la^v or that State, but the tax so charged shall not exceed 15 per cent of the gross amount of the royalties.

3. The term "royalties" as used in this Article means payme/iis of any kind received as a consi- deration for th: usi of, or the right to uce, any copyright of literary, artistic or scicntif.c work (including cinematograph films. and films or (apes for radio or television broadcasting),¹ any patent, trade m r k, design or model, plan, secret formula or process or for trio use of, or th" right to use, industrial, commercial or scientific equip- ment, or for information concerning industrial, commercial or scientific e\pr'ricnce.

5. Royalties shall be deemed to arise in a Con- tracting State when the payer is that Contiacling State itself, a political sub-division, a local autho- rity or a resident of that State, where, however, the person paying the royalties, whether iie is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contract- ing State in which the permanent establishment is situated.

6. Where, by reason of a special relationship between the payer and the recipient or between both of them and some other person, the amount of royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In that 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.

Article 13

CAPITAL GAINS

1. Gains from the alienation of immo\able pro- perty, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.

2. Gains from the alienation of movable property forming part of the business property of a perma- nent establishment which an enterprise of a Con- tracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other State.

3. Notwithstanding the provisions of paragraph 2 of this Article, gains from the alienation of ships and aircraft operated in international traffic and movable property pertaining to the operation of such ships and aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4. Gains derived by a resident of a Contracting State from the alienation of any property other than those mentioned in paragraphs 1, 2 and 3 of this Article shall be taxable only in that State.

5. For the purposes of this Article, the term "alienation" means the sale, exchange, transfer, or relinquishment oi the property or the extinguish- ment ot any lights theicin or the compulsory acquisition thereof under any law in force in the respective Contracting States.

Article J i

INDEPENDENT PERSONAL SERVICES

1. Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Con- tracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other Contracting State but only so much of it as is attributable to that fixed base.

2. The term 'professional services' includes es- pecially independent scientific, literary, artistic, educational or teaching activities, as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15

DEPENDENT PERSONAL SERVICES

1. Subject to the provisions of Articles 16, 17, 18, 19, 20 and 21, salaries, wages and other simi- lar remuneration derived by a resident of a Con- tracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.

2. Notwithstanding the nrov:^ions of paragraph 1 of this Article, remuneration derived by a resi- dent of a Contracting State in respect of an employ- ment exercised in the other Contracting State shall be taxable only in first mentioned State if :

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 18? days in the relevant "previous year" or "year of income",¹ and

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

(c) the remuneration is not borne by a per- manent ftablis'imenf or a flxed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration in respect of an employ- ment exercised a board, a sbip or aircraft in inter- national traffic, may be taxed only in the Contract- ing State in which the place of effective management of the enterprise is situated.

Article 16

DIRECTORS' FEES

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

Article 17

ARTISTES AND ATHLETES

1. Notwithstanding the provisions of Articles| 14 and 15, income derived by public entertainers 6uch as theatre, motion picture, radio or televi- sion artistes and musicians, and by athletes, from their personal activities as much may be taxed in the Contracting State in which these activities are exercised.

2. Where income Is derived from personal acti- vities exercised by an entertainer or an athlete in his capacity as such, and accrues not to the enter- tainer or athlete himself but to another person, that income may, notwithstanding the provisions of Articles 7, 14 and 15, be taxed in the State in which the activities of the entertainer or ath- lete are exercised.

3. Notwithstanding the provisions of paragraph i of this Article, income derived by an entertainer or an athlete who is a resident of a Contracting State from his personal activities as such exercis- ed in the other Contracting State, shall be tax- able only in the first-mentioned Contracting State, if those activities in the other Constituting State, are supported wholly or substantially from the public funds of the first-mentioned Contract- ing State, including any of its political sub-divi- sions or local authorities.

4. Notwithstanding the provisions of paragraph 2 of this Article and Articles 7, 14 and 15, where income in derived from personal activities exercised by an entertainer or an athlete in his capacity as such in a Contracting Slate and ac- crues not to the entertiner or athlete himself but to another person, that income shall be taxable only in the Contracting State, if that other person is supported wholly or substantially from the public funds of that other Contracting State, in- cluding any of its political ^ub-divisions or local authorities.

Article 18

GOVERNMENTAL FUNCTIONS

1. Remuneration, other than pension, paid by the Government of a Contnctine; State to an in- dividual who is a national of that State in respect J217 Gl/83—3

17

of services rendered to that State, shall be tax- able only in that State.

2. Any pension paid by the Government of a Contracting State to an individual who is a national of that State, shall be taxable only in that Contracting State.

3. The provisions of paragraphs ] and 2 of this Article shall not apply to remuneration and pen- sions in respect of services rendered in connec- tion with any business carried on by the Govern- ment of either of the Contracting States for the purpose of profit.

4. The provisions of paragraph 1 of this Arti- cle shall likewise apply in respect of remunera- tion paid under a development assistance prog- ramme of a Contracting State, out of funds sup- plied by that State, to a specialist or volunteer seconded to the other Contracting State with the consent of that other State.

5. For the purposes of this Article, the term "Government" shall include any State Govern- ment or local or statutory authority of either Contracting State and, in particular, the Reserve Bank of India and the Bank of Mauritius.

Article 19

Non-Government Pensions and Annuities

1. Any pension, other than a pension referred to in Article 18, or any annuity derived by a re- sident of a Contracting State from sources within the other Contracting State shall be taxed only in the first-mentioned Contracting State.

2. The term "pension" means a periodic pay- ment made in consideration of past services or by way of compensation for injuries received in the course of performance of services.

3. The term "annuity" means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time, und^r an obligation to make the payments in re- turn for adequate and full consideration in money or money's worth.

Article 20

STUDENTS AND APPRENTICS

1. A student or business apprentice who is or was a resident of one of the Contracting States immediately before visiting the other Contracting State and who is present in that other Contract- ing State solely for the purpose of his education or trainee, shall be exempt from tax in that other Contracting State on :

(a) pavments made to him frrwri >sourees outside that other Contracting State

for the purposes of his maintenance, education or training; and

(b) remuneration from employment in that other Contracting State, in an amount not exceeding Rs. 15,000 in Indian currency or its equivalent in Mauritius rupees at the parity rate of exchange during any "previous year" or "year of income"m as the case may be, pro\id- ed that such employment is directly related to his studies or is undertaken for the purpose of his maintenance.

2. The benefits of this Article shall extend only for such period of time as may be reason- able or customarily required to complete the education or training undertaken, but in no e\;ut shall any individual have the benefits of this Arti- cle for more than five consecutive years from the d ue of his first arrival in that other Contract- ing State.

Article 21

PROFESSORS, TEACHERS AND RESEARCH SCHOLARS

t. A Professor, Teacher and Research Scholar who is or was a resident of one of the Contract- ing States immediately before visiting the other Contracting State at the invitation of that other Contracting S\ate or of a university, college. scVoi or i''V'r approved institution in ihat other Con- Iractir": State for the purpose of teaching or eug- aying in research, or both, at the universily, col- lege, school or other approved institution, shall be exempt from tax in that other Cnntroot'nn Slate . on any remuneration for such teaching or re- t^arch for n period not exceeding two vears from. lh"* date of his arrival in that other Contracting State.

2. This Article shall not apply to income from research if ihe research is undertaken primarily for the private benefit of a specific person or persons.

3. For the purposes of this Article and Article 20 an individual shall be deemed to be a resident of a Contracting State if he is resident in that Contracfi'n

4 For the purpose of riaraffiwph 1, "approved institut'on" me?ns in institution which has been approved in this regard by the competent autho- rity of the concerned Contracting State.