Protocol - Protocol - Cyprus

PROTOCOL At the signing of the Agreement between the Government of the Republic of India and the Republic of Cyprus for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to taxes on income, both sides have agreed upon the following provisions which shall be an integral part of the Agreement: 1. Ad. Article 10 It is clarified that at present, dividends distributed by an Indian Company is exempt from tax by virtue of section 10 (34) of the Income-tax Act, 1961. Accordingly, even though the treaty provides for withholding tax rate of 10%, so long as the present system of taxation of dividends in India continues, there will be no withholding tax from dividends paid by an Indian company to its shareholders. 2. Ad. Article 13 Notwithstanding anything in paragraphs 4 and 5 of Article 13 of the Agreement, gains from the alienation of shares that have been acquired at any time prior to the first day of April, 2017 shall be taxable only in the Contracting State of which the alienator is a resident. However, nothing in this paragraph will apply to gains from the alienation of shares that have been acquired on or after the first day of April, 2017. 3. Ad. Article 24 With reference to paragraph 3 of Article 24, it is understood that this provision shall not be construed as preventing a Contracting State from charging the profits of a permanent establishment which a company of the other Contracting State has in the first mentioned State at a rate of tax which is higher than that imposed on the profits of a similar company of the first mentioned Contracting State, nor as being in conflict with the provisions of paragraph 3 of Article 7. 4. Ad. Article 27 With reference to Article 27, it is understood that in no case shall this Article be construed so as to impose upon a Contracting State the obligation to carry out measures at variance with the laws, administrative practices, or public policy of either Contracting State with respect to the collection of its own taxes. IN WITNESS WHEREOF the undersigned, duly authorized thereto, have signed this Protocol. DONE in duplicate in Nicosia at this day of 18 November 2016, each in the Hindi, Greek and English languages, all texts being equally authentic. In case of divergence of interpretation, the English text shall prevail.