Article 22 - Methods for elimination of double taxation - Chile

ARTICLE 22 METHODS FOR ELIMINATION OF DOUBLE TAXATION Double taxation shall be eliminated as follows: 1. In India: (a) Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in Chile, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the tax paid in Chile. Such deduction shall not, however, exceed that portion of the tax as computed before the deduction is given, which is a attributable, as the case may be, to the income which may be taxed in Chile (b) Where in accordance with any provision of the Agreement income derived by a resident of India is exempt from tax in India, India may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income. 2. In Chile: (a) residents in Chile, deriving income which has, in accordance with the provisions of this Agreement, been subject to taxation in India, may credit the tax so paid against any Chilean tax payable in respect of the same income, subject to the applicable provisions of the law of Chile (which shall not affect the general principle of this Article). This paragraph shall apply to all income referred to in this Agreement; (b) where, in accordance with any provision of the Agreement, income derived by a resident of Chile is exempt from tax in Chile, Chile may nevertheless, in calculating the amount of tax on other income, take into account the exempted income.