Article PROTOCOL - Protocol - Myanmar

PROTOCOL At the moment of signing the Agreement this day concluded between the Government of the Republic of India and the Government of the Union of Myanmar 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. For the purpose of computing the time limit in paragraph 3 (a) of Article 5, the 270 days period begins as of the date on which the construction activity itself begins; it does not take into account the time spent solely on preparatory activities. 2. With respect to Article 7: - Where an enterprise of a Contracting State sells goods or merchandise or carries on business in the other Contracting State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of the income which is attributable to the actual activity of the permanent establishment for such sales or business. In particular, in the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident. 3. It is understood that the two Contracting States will review the provisions of this Agreement after a period of 4 years from the date on which this Agreement enters into force in order to consider the inclusion of an Article on Fees for Technical Services within the scope of this Agreement. 4. It is understood that the two Contracting States will review the provisions of Article 8 of this Agreement after a period of 4 years from the date on which this Agreement enters into force in order to consider the taxation of income of shipping enterprises from operations in international traffic, in the source State. 5. 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. 6. When Myanmar introduces a provision in its domestic law regarding assistance in collection of taxes to other treaty partners or agrees to extend such assistance to any other treaty partner, then the competent authorities of the two Contracting States shall extend assistance in the collection of taxes to each other. In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Protocol. DONE in duplicate at New Delhi on the 2nd day of April in the year 2008 each in the Hindi, Myanmar and English 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 GOVERNMENT OF THE UNION OF MYANMAR (P.K. Mishra) Chairman Central Board of Direct Taxes Department of Revenue Ministry of Finance (Kyi Thein) Ambassador Extraordinary and Plenipotentiary of Union of Myanmar to the Republic of India