DT6720.9 - DT: Estonia: double taxation agreement, Article 9: Associated enterprises
- Where:
- an enterprise of a Contracting State participates directly or
indirectly in the management, control or capital of an enterprise
of the other Contracting State; or
- 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 Contracting 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 enterprises, 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.
- Where a Contracting State includes in the profits of an
enterprise of that State - and taxes accordingly - profits on which
an enterprise of the other Contracting State has been charged to
tax in that other State and the profits so included are profits
which would have accrued to the enterprise of the first-mentioned
State if the conditions made between the two enterprises had been
those which would have been made between independent enterprises,
then that other State shall make an appropriate adjustment to the
amount of the tax charged therein on those profits. In determining
such adjustment, due regard shall be had to the other provisions of
this Convention and the competent authorities of the Contracting
States shall if necessary consult each other.
