Article 1 - Personal Scope - Russia

RUSSIA 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 GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME This document was prepared jointly by the Competent Authorities of India and Russian Federation 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 Government of the Republic of India and the Government of the Russian Federation for the Avoidance of Double Taxation with respect to Taxes on Income signed on 25th March, 1997 (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 Russian Federation ( Russia ) 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 Russia submitted to the Depositary upon ratification on 18th June, 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 the Agreement. 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-easures-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 http://www.minfin.ru/ru/perfomance/tax_relations/international/?id_57=124786 area_id=57 page_id=179 popup=Y The MLI position of the India submitted to the Depositary upon ratification on 25th June, 2019 and the MLI position of the Russian Federation submitted to the Depositary upon ratification on 18th June, 2019 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 Russian Federation in their MLI positions. Dates of the deposit of instruments of ratification: 25th June, 2019 for India and 18th June, 2019 for the Russian Federation. Entry into force of the MLI: 1st October, 2019 for India and 1st October, 2019 for the Russian Federation. 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 1-4-2021 i.e. the first day of the next taxable period that begins on or after 30 days after the date of receipt (which is 30-4-2020) by the Depositary of the latest notification by the Russian Federation making the reservation described in paragraph 7 of Article 35 (Entry into Effect) that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the Agreement; and ➢ With respect to all other taxes levied by India, for taxes levied with respect to taxable periods beginning on or after 1-4-2021 i.e. the taxable period beginning on or after the expiration of a period of six calendar months from 30 days after the date of receipt (which is 30-4-2020) by the Depositary of the latest notification by the Russian Federation making the reservation described in paragraph 7 of Article 35 (Entry into Effect) that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the Agreement. In Russia: ➢ 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 1-1-2021 i.e. the first day of the next calendar year that begins on or after 30 days after the date of receipt (which is 30-4-2020) by the Depositary of the latest notification by the Russian Federation making the reservation described in paragraph 7 of Article 35 (Entry into Effect) that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the Agreement; and ➢ With respect to all other taxes levied by Russian Federation, for taxes levied with respect to taxable periods beginning on or after 1-1-2021 i.e. the taxable period beginning on or after the expiration of a period of six calendar months from 30 days after the date of receipt (which is 30-4-2020) by the Depositary of the latest notification by the Russian Federation making the reservation described in paragraph 7 of Article 35 (Entry into Effect) that it has completed its internal procedures for the entry into effect of the provisions of the MLI with respect to the Agreement. AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES ON INCOME The Government of the Republic of India and the Government of the Russian Federation, desiring to conclude an Agreement for the avoidance of double taxation with respect to taxes on income and with a view to promoting economic cooperation 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 PERSONAL SCOPE This Agreement shall apply to persons who are residents of one or both of the Contracting States. The following paragraph 1 of Article 11 of the MLI applies and supersedes the provisions of this Agreement: ARTICLE 11 OF THE MLI- APPLICATION OF TAX AGREEMENTS TO RESTRICT A PARTY'S RIGHT TO TAX ITS OWN RESIDENTS [ The Agreement ] shall not affect the taxation by a [1] [ Contracting State ] of its residents, except with respect to the benefits granted under Article 9 as modified by paragraph 1 of Article 17 of the MLI, paragraph 3 of Article 17, Article 18, 19, 20, paragraph 1 of 21, 23, 24, 25 and 27 of [ the Agreement ]. FOOTNOTES:- 1 . The texts of the boxes in [Square brackets] and in italics indicate minor terminology changes made to the text of the MLI.