Article 1 - Scope of the Convention - UK (United Kingdom)

UK SYNTHESISED TEXT OF THE MLI AND THE CONVENTION BETWEEN THE GOVERNMENT OF THEREPUBLIC OF INDIA AND GOVERNMENT OF THE UNITED KINGDOM OFGREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE OF DOUBLETAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TOTAXES ON INCOME AND CAPITAL GAINS General disclaimer on the Synthesised text document This document presents the synthesised text for the application of the Convention between the Government of the Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income and Capital Gains signed on 25 January 1993 and the Protocol signed on 30 October 2012 (together the Convention ), as modified by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting signed by the Republic of India and the United Kingdom on 7 June 2017 (the MLI ). This document was prepared jointly by the competent authorities of the Republic of India and the United Kingdom and represents their shared understanding of the modifications made to the Convention by the MLI. The document was prepared on the basis of the MLI position of the Republic of India submitted to the Depositary upon ratification on 25 June 2019 and of the MLI position of the United Kingdom submitted to the Depositary upon ratification on 29 June 2018. 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 Convention. The authentic legal texts of the Convention 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 Convention are included in boxes throughout the text of this document in the context of the relevant provisions of the Convention. The boxes containing the provisions of the MLI have generally been inserted in accordance with the ordering of the provisions of the Convention. 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 Convention (such as Covered Tax Agreement and Convention , 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 Convention: 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 Convention or to the Convention must be understood as referring to the Convention as modified by the provisions of the MLI, provided such provisions of the MLI have taken effect. References The copies of the legal texts of the MLI and the Convention can be found at the following links: The MLI: http://www.oecd.org/tax/treaties/multilateral-convention-to-implement-tax-treaty-related-measures-to-prevent-BEPS.pdf In the Republic of India: https://www.incometaxindia.gov.in/Pages/international-taxation/dtaa.aspx In the United Kingdom: http://www.legislation.gov.uk/uksi/1993/1801/contents/made http://www.legislation.gov.uk/uksi/2013/3147/contents/made The MLI position of the Republic of India submitted to the Depositary upon ratification on 25 June 2019 and of the MLI position of the United Kingdom submitted to the Depositary upon ratification on 29 June 2018 can be found on the MLI Depositary (OECD) webpage. Disclaimer on the entry into effect of the provisions of the MLI The provisions of the MLI applicable to the Convention do not take effect on the same dates as the original provisions of the Convention. 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 Republic of India and the United Kingdom in their MLI positions. Dates of the deposit of instruments of ratification, acceptance or approval: 25 June 2019 for the Republic of India and 29 June 2018 for the United Kingdom. Entry into force of the MLI: 1 October 2019 for the Republic of India and 1 October 2018 for the United Kingdom. Unless it is stated otherwise elsewhere in this document, the provisions of the MLI have effect with respect to the Convention: In the Republic of India for 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; In the United Kingdom for 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; In the Republic of India, for other taxes for taxable periods beginning on or after 1 April 2020; and In the United Kingdom, from 1 April 2020 for corporation tax and from 6 April 2020 for income tax and capital gains tax. CONVENTION BETWEEN THE GOVERNMENT OF THE REPUBLIC OF INDIA AND THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL GAINS The Government of the Republic of India and the Government of the United Kingdom of Great Britain and Northern Ireland; Desiring to conclude a new Convention for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and capital gains; The following paragraph 1 of Article 6 of the MLI is included in the preamble of this Convention: ARTICLE 6 OF THE MLI PURPOSE OF A COVERED TAX AGREEMENT Intending to eliminate double taxation with respect to the taxes covered by [1] [ this Convention ] 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 [ the Convention ] for the indirect benefit of residents of third jurisdictions), Have agreed as follows: ARTICLE 1 SCOPE OF THE CONVENTION 1. This Convention shall apply to persons who are residents of one or both of the Contracting States. 2. This Convention extends to the territory of each Contracting State, including its territorial sea, and to those areas of the exclusive economic zone or the continental shelf adjacent to the outer limit of the territorial sea of each State over which it has, in accordance with international law, sovereign rights for the purpose of exploration and exploitation of the natural resources of such areas, and references in this Convention to the Contracting State or to either of them shall be construed accordingly. The following paragraph 1 of Article 11 of the MLI applies and supersedes the provision of this Convention: ARTICLE 11 OF THE MLI APPLCIATION OF TAX AGREEMENTS TO RESTRICT A PARTY'S RIGHT TO TAX ITS OWN RESIDENTS [ This Convention ] shall not affect the taxation by a [ Contracting State ] of its residents, except with respect to the benefits granted [ under paragraph 2 of Article 10 and Articles 19, 21, 22, 24, 26, 27 and 29 ] of [ this Convention ] . FOOTNOTES: - 1 . The texts of the boxes in [Square brackets] and in italics indicate minor terminology changes made to the text of the MLI.