PROTOCOL - Protocol - Israel

PROTOCOL At the signing today of the Convention between the Republic of India and the State of Israel for the Avoidance of Double Taxation and for the Prevention of Fiscal Evasion with respect to taxes on income and on capital, the undersigned have agreed upon the following provisions, which shall form an integral part of the Convention. 1. Nothing in the provisions of paragraph 3 of Article 7 shall be interpreted as precluding a contracting State from determining executive and administrative expenses of a head office incurred outside that contracting State according to the provisions of internal laws as they exist at the time of the signing of this Convention. However, should future changes in the domestic law of a contracting State further restrict the deduction of such expenses in any manner, then the two contracting States shall consult each other for purposes of amending this paragraph. 1 [****] 2 [****] IN WITNESS WHEREOF the undersigned, duly authorised hereto, have signed this Protocol. DONE at New Delhi on 29th January, 1996, in two original copies, each in the Hindi, Hebrew and English languages, all the texts being equally authentic. In the case of any divergence in interpretation, the English text shall prevail. For the Government of For the Government of The Republic of India The State of Israel MANMOHAN SINGH A. SHOCHAT MINISTER OF FINANCE MINISTER OF FINANCE ********** NOTES:- 1. Omitted vide NOTIFICATION NO. 10/2017 dated 14-02-2017 before it was read as , 2. The competent authorities of the contracting States shall initiate the proper procedure to review the provisions of Articles 12 and 13 (Royalties and fees for technical services, respectively) after a period of five years from the date of entry into force of this Convention. However, if under any Convention or Agreement between India and any third State which enters into force after 1-1-1995, India limits its taxation at source or Royalties or Fees for Technical Services or Interest or Dividends to a rate lower or a scope more restricted than the rate or scope provided for in this Convention, the same rate or scope as provided for in that Convention or Agreement on the said items of income shall also apply under this Convention with effect from the date on which the present Convention comes into force or the relevant Indian Convention or Agreement, whichever enters into force later. 3. In respect of paragraph 2 of Article 25, it is understood that if India enters into an Agreement or Convention for the avoidance of double taxation with a third State after 1-1-1995 whereby the difference in the rates of tax between enterprises of a permanent establishment of a company of a country other than India and that of India is removed or reduced, then, a corresponding reduction shall be effected in respect of rates of taxes on profits according to the enterprises of a company which is a resident of Israel.