Article 2 – Taxes Covered under the Scope of the Treaty/ DTAA

Article 2 – Taxes Covered under the Scope of the Treaty, deals with  which  “Taxes”,  paid by the taxpayer, shall be eligible for benefit under the Treaty.

WHY IS ARTICLE 2 RELEVANT  ?

WHICH TAXES ARE COVERED ?

ARTICLE 2 (1) – INDIA NETHERLANDS TREATY

This Convention shall apply to
taxes on income and on capital
imposed on behalf of
one of the States or
of its political subdivisions or
local authorities,
irrespective of the manner in which they are levied

ARTICLE 2(1) – INDIA USA TREATY

The existing taxes to which this Convention shall apply are :

(a) In the United States, the Federal income taxes imposed by the Internal Revenue Code (but excluding the accumulated
earnings tax, the personal holding company tax, and social security taxes), and the exercise taxes imposed on insurance
premiums paid to foreign insurers and with respect to private foundations (hereinafter referred to as “United States Tax”);
provided, however, the Convention shall apply to the exercise taxes imposed on insurance premiums paid to foreign insurers only
to the extent that the risks covered by such premiums are not reinsured with a person not entitled to exemption from such taxes
under this or any other Convention which applies to these taxes ; and

 

ARTICLE 2(1) – INDIA USA TREATY

(a) in India :
(i) the income-tax including any surcharge thereon, but excluding income-tax on undistributed income of companies, imposed under the Income-tax Act ; and
(ii) the surtax (hereinafter referred to as “Indian tax”).
Taxes referred to in (a) and (b) above shall not include any amount payable in respect of any default or omission
in relation to the above taxes or which represent a penalty imposed relating to those taxes

 

KEY FEATURES OF ARTICLE 2

 

WHICH TAXES ARE COVERED ?

ARTICLE 2 (2) – INDIA NETHERLANDS TREATY

There shall be regarded as taxes on income and on capital
all taxes imposed on total income,
on total capital, or
on elements of income or of capital,
including taxes on gains from the alienation of movable or immovable property,
taxes on the total amounts of wages or salaries paid by enterprises,
as well as taxes on capital appreciation.

WHICH TAXES ARE COVERED  ?

KEY FEATURES

ARTICLE 2(2) – INDIA USA TREATY

The Convention shall apply also to any identical or substantially similar taxes
which are imposed after the date of signature of the Convention
in addition to, or in place of, the existing taxes.
The competent authorities of the Contracting States shall notify each other
of any significant changes which have been made in their respective taxation laws and
of any official published material concerning the application of the Convention.

KEY FEATURE OF ARTICLE 2(2) OF INDIA USA TREATY

 

ARTICLE 2 (3) – GENERAL CLAUSE

The existing taxes to which the Convention shall apply are in particular :
(a) In the XYZ :
(b) In India :

ARTICLE 2(2) – INDIA UAE TREATY

1. ……
2. The existing taxes to which the Agreement shall apply are (added <<<>>>> ) :

(a) In United Arab Emirates :
(i) income-tax ;
(ii) corporation tax ;
(iii) wealth-tax

(hereinafter referred to as “U.A.E. tax”) ;
(b) In India :

(i) the income-tax including any surcharge thereon ;
(ii) the surtax ; and
(iii) the wealth-tax

(hereinafter referred to as “Indian tax”).

ARTICLE 2(3) – INDIA GERMANY TREATY

The existing taxes to which this Agreement shall apply are in particular :
(a) in the Federal Republic of Germany :
the Einkommensteuer (income-tax),
the Korperschaftsteuer (corporation-tax),
the Vermogensteuer (capital tax), and
the Gewerbesteuer (trade tax)
(hereinafter referred to as “German tax”);

(b) in the Republic of India,
the income-tax including any surcharge tax thereon (Einkommensteuer, einschl, darauf entfallender Zusatzsteuern), and the wealth-tax (Vermogensteuer) (hereinafter referred to as “Indian tax”).

KEY FEATURES OF ARTICLE 2(3)

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3 thoughts on “Article 2 – Taxes Covered under the Scope of the Treaty/ DTAA”

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