Protocol - Protocol - Denmark

PROTOCOL The Government of India and the Government of the Kingdom of Denmark : Having entered into a Convention for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital : Have agreed, at the time of signing the said Convention, on the following provisions which shall constitute an integral part thereof : (1) For the purposes of paragraph 3(e) of Article 23, it is understood that the rates of tax specified therein shall in no case exceed the rate of withholding tax applicable to such categories of income under the Indian tax laws. (2) For the purposes of Article 27, a request for assistance in collection of taxes due from a taxpayer shall not be made unless such taxes aggregate to 2000 Danish Crowns or its equivalent in Indian currency or more. 1 [(3) With reference to Article 26, it is understood that as stated in paragraph 9.1 of OECD commentary on Article 26, the new wordings (as per 2010 version) of Article 26 covers Tax Examinations Abroad.] IN WITNESS WHEREOF the undersigned, duly authorised thereto, have signed the present Protocol. Done in duplicate at Copenhagen this 8th day of March, one thousand nine hundred eighty-nine in Hindi, Danish and English languages, all the texts being equally authentic. In case of divergence between the three texts, English text shall be the operative one. PROTOCOL At the moment of signing the Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital between the Government of the Republic of India and the Government of the Kingdom of Denmark the signatories have agreed that the following provisions shall form an integral part of the Convention : 1. The Convention has been extended to apply in its entirety to the territory of the Faroe Islands. 2. In the Convention the terms the Kingdom of Denmark and Denmark shall also apply to the Faroe Islands unless the context otherwise requires. 3. The taxes which in pursuance of the present Protocol are the subject of the Convention shall include the following taxes which are levied on the Faroe Islands : (a) Skat til landskassen (the provincial income-tax); (b) Kommunalindkomstaskat (the communal income-tax); (c) Kirkeskat (the Church tax); (d) Udbytteskat (tax on dividends); (e) Ejendomsavanceafgift (tax on profit from real estate); (f) Royaltyafgift (tax on royalty). 4. The term competent authorities means in the case of the Faroe Islands the Faroe Local Government or the authority which on behalf of the Local Government has been authorized to handle questions with reference to the Convention. 5. This Protocol shall enter into force on and have effect from the same date as the Convention. In witness whereof the undersigned, duly authorized thereto, have signed the present Protocol. 6. Done in duplicate at Copenhagen this 8th day of March, one thousand nine hundred and eighty-nine in Hindi, Danish and English languages, all the texts being equally authentic. In case of divergence between any of the texts, the English text shall be the operative one. 2 [PROTOCOL AMENDING THE CONVENTION BETWEEN THE REPUBLIC OF INDIA AND THE KINGDOM OF DENMARK FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL, AND THE PROTOCOL ON PROVISIONS ON CLARIFICATION OF THE CONVENTION WHICH WERE BOTH SIGNED AT COPENHAGEN ON 8TH MARCH, 1989. The Government of the Republic of India and the Government of the Kingdom of Denmark; Desiring to conclude a Protocol (hereinafter referred to as Amending Protocol ) to amend the Convention between the Republic of India and the Kingdom of Denmark for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital, and the Protocol on provisions on clarification of the Convention which were both signed at Copenhagen on 8th March, 1989 and which entered into force on 13th June, 1989 (hereinafter referred to as the Convention and the Protocol on provisions on clarification of the Convention respectively); Have agreed on the following provisions which shall have effect between India and Denmark and in accordance with the protocol extending the Convention to apply in its entirety to the Faroe islands which was signed at Copenhagen on 8 th March, 1989 also between India and the Faroe islands: Article 1 Article 26 of the Convention shall be deleted and replaced by the following Article: Article 26 EXCHANGE OF INFORMATION 1 The competent authorities of the Contracting States shall exchange such information (including documents or certified copies of the documents) as is foreseeably relevant for carrying out the provisions of this Convention or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities thereof, insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Articles 1 and 2. 2. Any information received under paragraph 1 by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. Notwithstanding the foregoing, information received by a Contracting State may be used for other purposes when such information may be used for such other purposes under the laws of both Contracting States and the Competent Authority of the Supplying State authorises such use. 3. In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; (b) to supply information (including documents or certified copies of the documents) which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; (c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information the disclosure of which would be contrary to public policy (ordre public). 4. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information. 5. In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person. Article 2 The following paragraph 3 shall be inserted after paragraph 2 of the Protocol to the Convention on provisions on clarification of the Convention: 3. With reference to Article 26, it is understood that as stated in paragraph 9.1 of OECD commentary on Article 26, the new wordings (as per 2010 version) of Article 26 covers Tax Examinations Abroad. Article 3 1. Each of the Contracting States shall notify to the other the completion of the procedures required as far as it is concerned for the bringing into force of this Protocol. The Protocol shall enter into force on the first day of the month following t4 e date of receipt of the later of these notifications. 2. The provisions of this Protocol shall remain in force as long as the Convention remains in force. Done in duplicate at Copenhagen on 10 th October, 2013 in the Hindi, Danish and English languages, all three texts being authentic. In case of divergent interpretation of the Hindi and the Danish text the English text shall prevail. ************* NOTES:- 1 . Inserted vide Notification No. 45/2015 dated 22-5-2015 w.r.e.f. 01-02-2015 2 . Inserted vide Notification No. 45/2015 dated 22-5-2015 w.r.e.f. 01-02-2015