Article 1 - Persons Covered - Finland

SYNTHESISED TEXT OF THE MULTILATERAL CONVENTION TO IMPLEMENT TAX TREATY RELATED MEASURES TO PREVENT BASE EROSION AND PROFIT SHIFTING (MLI) AND THE AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE REPUBLIC OF FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME This document was prepared jointly by the Competent Authorities of India and Finland and represents their shared understanding of the modifications made to the Agreement by the MLI. This document presents the synthesised text for the application of the Agreement between the Republic of India and the Government of the Republic of Finland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income signed on 15th January, 2010 (the Agreement ), as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by the India and the Finland on 7th June, 2017 (the MLI ). The document was prepared on the basis of the MLI position of the India submitted to the Depositary upon ratification on 25th June, 2019 and of the MLI position of the Finland submitted to the Depositary upon acceptance on 25th February, 2019. These MLI positions are subject to modifications as provided in the MLI. Modifications made to MLI positions could modify the effects of the MLI on this Agreement. The document also contains the modifications resulting from the withdrawal of the reservation made by the Republic of Finland to Article 9 of the MLI (consolidated MLI position of the Republic of Finland on 27 June 2023). The authentic legal texts of the Agreement and the MLI take precedence and remain the legal texts applicable. The provisions of the MLI that are applicable with respect to the provisions of the Agreement are included in boxes throughout the text of this document in the context of the relevant provisions of the Agreement. The boxes containing the provisions of the MLI have generally been inserted in accordance with the ordering of the provisions of the Agreement. Changes to the text of the provisions of the MLI have been made to conform the terminology used in the MLI to the terminology used in the Agreement (such as Covered Tax Agreement and Agreement , Contracting Jurisdictions and Contracting States ), to ease the comprehension of the provisions of the MLI. The changes in terminology are intended to increase the readability of the document and are not intended to change the substance of the provisions of the MLI. Similarly, changes have been made to parts of provisions of the MLI that describe existing provisions of the Agreement: descriptive language has been replaced by legal references of the existing provisions to ease the readability. In all cases, references made to the provisions of the Agreement or to the Agreement must be understood as referring to the Agreement as modified by the provisions of the MLI, provided such provisions of the MLI have taken effect. References: The authentic legal text of the MLI (in English) can be found on the MLI Depository (OECD) webpage at the following link: http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf The authentic legal texts of the Agreement (in English) can be found at the following link: https://www.incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx The authentic legal texts of the Agreement (in Finnish language) can be found at the following link: https://finlex.fi/fi/sopimukset/sopsteksti/2010/20100058 The MLI position of the India submitted to the Depositary upon ratification on 25th June, 2019, the MLI position of the Finland submitted to the Depositary upon acceptance on 25 th February, 2019 and the consolidated MLI position of the Republic of Finland submitted to the Depositary on 27 June 2023 can be found on the MLI Depositary (OECD) webpage. Entry into Effect of the MLI Provisions: The provisions of the MLI applicable to the Agreement do not take effect on the same dates as the original provisions of the Agreement. Each of provisions of the MLI could take effect on different dates, depending on the types of taxes involved (taxes withheld at source or other taxes levied) and on the choices made by the India and the Finland in their MLI positions. Dates of the deposit of instruments of ratification or acceptance: 25 th June, 2019 for India and 25 th February, 2019 for the Finland. Entry into force of the MLI: 1 st October, 2019 for the India and 1 st June, 2019 for the Finland. Unless it is stated otherwise elsewhere in this document, the provisions of the MLI have effect with respect to the Agreement: In India: ➢ With respect to taxes withheld at source on amounts paid or credited to non- residents, where the event giving rise to such taxes occurs on or after 1 April 2020; and ➢ With respect to all other taxes levied by India, for taxes levied with respect to taxable periods beginning on or after 1 April 2020. In Finland: ➢ With respect to taxes withheld at source on amounts paid or credited to non- residents, where the event giving rise to such taxes occurs on or after 1 January 2020; and ➢ With respect to all other taxes levied by the Republic of Finland, for taxes levied with respect to taxable periods beginning on or after 1 January 2021. In accordance with paragraph 9 of Article 28 and paragraph 6 of Article 29 of the MLI, paragraph 4 of Article 9 of the MLI has effect with respect to the Agreement: In India: ➢ With respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2024; and ➢ With respect to all other taxes levied by India, for taxes levied with respect to taxable periods beginning on or after 1 January 2024. In Finland: ➢ With respect to taxes withheld at source on amounts paid or credited to non-residents, where the event giving rise to such taxes occurs on or after 1 January 2024; and ➢ With respect to all other taxes levied by the Republic of Finland, for taxes levied with respect to taxable periods beginning on or after 1 January 2024. AGREEMENT BETWEEN THE REPUBLIC OF INDIA AND THE REPUBLIC OF FINLAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of Finland and the Government of the Republic of India, Desiring to conclude an Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and with a view to promoting economic co-operation between the two countries, The following paragraph 1 of Article 6 of the MLI is included in the preamble of this Agreement: ARTICLE 6 OF THE MLI- PURPOSE OF A COVERED TAX AGREEMENT Intending to eliminate double taxation with respect to the taxes covered by this agreement without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance (including through treaty-shopping arrangements aimed at obtaining reliefs provided in this agreement for the indirect benefit of residents of third jurisdictions), Have agreed as follows: ARTICLE 1 PERSONS COVERED This Agreement shall apply to persons who are residents of one or both of the Contracting States.