Protocol - Protocol - Colombia

PROTOCOL At the moment of signing the Agreement this day concluded between the Government of Republic of India and the Republic of Colombia for the Avoidance of Double Taxation and the prevention of fiscal evasion with respect to taxes on income, the undersigned have agreed upon the following provisions which shall be an integral part of the Agreement: 1. With reference to paragraph 3 of Article 5, its understood that, for the purposes of computing the time limits referred to in that paragraph, such activities performed by an enterprise related to another enterprise within the meaning of Article 9, shall be added to the period during which activities are performed by the enterprise, provided that the activities of both enterprises are identical or substantially similar for the same or connected project. 2. In the case of Colombia, notwithstanding the provisions of paragraph 2 of Article 10, when a company resident in Colombia has not paid income tax on the profit distributed to shareholders (socios o accionistas), because of exemptions or because the profit exceeds the maximum non-taxed limit contained in Article 49 and in paragraph 1 of Article 245 of the Tax Statute of Colombia, the dividend distributed may be taxed in Colombia at a rate not exceeding 15 per cent, if the beneficial owner of the dividend is a shareholder (socio o accionista) resident in India. 3. With reference to paragraph 3(b) of Article 12, in the case of India, it is understood that the term fees for technical services includes payments as consideration for provision of services of technical or other personnel in accordance with the provisions of section 9 of the Income-tax Act, 1961 . 4. It is understood that if the domestic law of a Contracting State is more beneficial to a resident of the other Contracting State than the provisions of this Agreement, then the provisions of the domestic law of the first-mentioned State shall apply to the extent they are more beneficial to such a resident. IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol. DONE in duplicate at New Delhi this 13th day of May, 2011, each in the English, Hindi and Spanish languages, all texts being equally authentic In case of divergence of interpretation, the English text shall prevail. For the Government of the Republic of India: For the Republic of Colombia: (SUDHIR CHANDRA) (JUAN ALFREDO PINTO SAAVEDRA) CHAIRMAN CENTRAL BOARD OF DIRECT TAXES AMBASSADOR OF COLOMBIA TO INDIA