DT6521 - DT: Egypt: double taxation agreement, Article 22: Elimination of double taxation
- Subject to the provisions of the law of the United Kingdom
regarding the allowance as a credit against United Kingdom tax of
tax payable in a territory outside the United Kingdom (which shall
not affect the general principle hereof):
- Egyptian tax payable under the laws of Egypt and in accordance
with this Convention, on profits, income or chargeable gains from
sources within Egypt (excluding in the case of a dividend, tax
payable in respect of the profits out of which the dividend is
paid) shall be allowed as a credit against any United Kingdom tax
computed by reference to the same profits, income or chargeable
gains by reference to which Egyptian tax is computed.
- In the case of a dividend paid by a company which is a resident
of Egypt to a company which is a resident of the United Kingdom and
which controls directly or indirectly at least 10 per cent of the
voting power in the company paying the dividend, the credit shall
take into account (in addition to any Egyptian tax for which credit
may be allowed under the provisions of sub-paragraph (a) of this
paragraph) the Egyptian tax payable by the company in respect of
the profits out of which such dividend is paid.
Provided that this paragraph shall not apply to a company which is a resident of the United Kingdom and is a Petroleum Company as defined for the purposes of Schedule 9 of the Oil Taxation Act 1975.
- Where a resident of Egypt derives income which, in accordance
with the provisions of this Convention, may be taxed in the United
Kingdom, Egypt shall allow as a deduction from the tax on the
income of that person an amount equal to the tax paid in the United
Kingdom; such deduction shall not however exceed that part of the
tax, as computed before the deduction is given, which is
appropriate to the income derived from the United Kingdom. Where
such income is a dividend paid to a company which is a resident of
Egypt and which directly or indirectly controls at least 10 per
cent of the voting power in the company paying the dividend the
credit shall take into account the United Kingdom tax payable by
the company in respect of the profits or income out of which the
dividend is paid.
- For the purposes of paragraph (1) of this Article the term
`Egyptian tax payable` shall be deemed to include any amount which
would have been payable as Egyptian tax for any year but for an
exemption or reduction of tax granted for that year or any part
thereof under:
- Articles 16 and 18 of Law No 43 of 1974 so far as they were in
force on and have not been modified since the date of signature of
this Convention, or have been modified only in minor respects so as
not to affect their general character; or
- any other provision which may subsequently be made granting an
exemption or reduction from tax which is agreed by the competent
authorities of the Contracting States to be of a substantially
similar character, if it has not been modified thereafter or has
been modified only in minor respects so as not to affect its
general character. Provided that relief from United Kingdom tax
shall not be given by virtue of this paragraph in respect of income
from any source if the income arises in a period starting more than
10 years after the exemption from, or reduction of, Egyptian tax
was first granted in respect of that source.
- For the purposes of paragraphs (1) and (2) of this Article
profits, income and capital gains owned by a resident of a
Contracting State which may be taxed in the other Contracting State
in accordance with this Convention shall be deemed to arise from
sources in that other Contracting State.
- Where profits on which an enterprise of a Contracting State has
been charged to tax in that State are also included in the profits
of an enterprise of the other State and the profits so included are
profits which would have accrued to that enterprise of the other
State if the conditions made between the enterprises had been those
which would have been made between independent enterprises dealing
at arm's length, the amount included in the profits of both
enterprises shall be treated for the purposes of this Article as
income from a source in the other State of the enterprise of the
first-mentioned State and relief shall be given accordingly under
the provisions of paragraph (1) or paragraph (2) of this Article.
