Protocol - Protocol - Ireland

PROTOCOL At the signing of the Convention between the Government of the Republic of India and the Government of Ireland for the Avoidance of Double Taxation and for the Prevention of Fiscal Evasion with respect to taxes on income and capital gains, the undersigned have agreed that the following shall form an integral part of the Convention : With reference to Articles 3 and 23 1. Where a person resident in Ireland is a member of a partnership which is resident in India and by virtue of this Convention any profits, income or gains of the partnership are relieved from tax in Ireland, the Convention shall not affect any liability to tax in Ireland of such person in respect of such person s share of any profits, income or gains of the partnership; any such share of profits, income or gains shall be treated for the purposes of Article 23 as profits, income or gains from sources in India and the appropriate part of the Indian tax borne by the partnership shall be allowed as a credit against any Irish tax computed by reference to the said share of the profits, income or gains. With reference to Article 7 2. If, in accordance with the laws of a Contracting State, profits are attributed to a permanent establishment of an enterprise carrying on insurance business, on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in Article 7. With reference to Article 24 3. The provisions of this Article shall not be construed as preventing India from charging the profits of a permanent establishment of an Irish company in India at a rate of tax which is higher than that imposed on the profits of a similar Indian company, nor as being in conflict with the provisions of paragraph 3 of. With reference to collection assistance 4. It is understood that at the date of signature of this Convention, the laws of Ireland do not permit it to lend assistance in the collection of taxes on income, profits or gains of another country. However, if after the date of signature of this Convention, the laws of Ireland in this respect change and Ireland enters into an arrangement with another country to permit such assistance in collection, then Ireland shall inform the Indian competent authority and, if requested by such authority, shall immediately enter into negotiations for the purpose of incorporating provisions with regard to collection assistance in this Convention. In witness whereof the undersigned, being duly authorised thereto, have signed this Convention. Done in duplicate at New Delhi on this 6th day of November in 2000, in the Hindi and English languages, both the texts being equally authentic. In case of divergence between the two texts, the English text shall prevail. Addendum to Notification No. 45/2002 [F. No. 503/6/99-FTD], dated 20-2-2002, vide Notification No. GSR 212(E), dated 19-3-2002 In the Notification No. 45/2002 of the Government of India, in the Ministry of Finance (Department of Revenue), Number G.S.R. 105(E), dated the 20th February, 2002 published in the Gazette of India, (Extraordinary), in Part-II, section 3, sub-section (i), dated the 20th February, 2002, the Exchange of Letters between the Indian and the Irish authorities as annexed shall form part of the aforesaid notification. ANNEXURE The Department of Foreign Affairs presents its compliments to the Embassy of India and has the honour to refer to the Convention between the Government of Ireland and the Government of the Republic of India for the Avoidance of Double Taxation and for the Prevention of Fiscal Evasion with respect to Taxes on Income and on Capital Gains which was signed in New Delhi on 6th November, 2000 and ratified by the Government of the Republic of India on November 9, 2000 and which has yet to be ratified by the Irish Government, and to make, on behalf of the Government of Ireland, the following proposal for the purpose of its application. The Government of Ireland proposes that the references in Article 3(1)(ii) to a year beginning with the sixth day of April in one year and ending with the fifth day of April in the following year should read the calendar year . The Government of Ireland also proposes that the references in article 28(3)(b)(i) to the sixth of April in the year next following should be read as the first day of January in the year next following . By reason of the amendment, the Convention between the Government of Ireland and the Government of the Republic of India would then take effect for all taxes covered by it from January 1, 2002. Finally, the Government of Ireland also proposes that the references in Article 29(b)(i) to the sixth of April in the year next following should be read as the first day of January in the year next following . If the foregoing proposals are acceptable to the Government of the Republic of India, the Department of Foreign Affairs has the honour to suggest that the present Note and the reply of the Government of the Republic of India to that effect shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force of the Convention. The Department of Foreign Affairs avails itself of this opportunity to renew to the Embassy of India the assurances of its highest consideration. The Embassy of India, Dublin, presents its compliments to the Department of Foreign Affairs of the Government of Ireland and with reference to their Note Verbale No. 348/764, dated 3rd September, 2001, regarding the Convention for Avoidance of Double Taxation and the Prevention of Fiscal Evasion, signed between India and Ireland, has the honour to convey that the concerned authorities in India have informed that the Government of India has accepted the amendments to the convention suggested by the Government of Ireland vide the Note Verbale under reference above. This information may please be conveyed to the Department of Revenue, Government of Ireland, so that these amendments can come into effect from the date as stipulated in the Note Verbale dated 3rd September, 2001, from the esteemed Department. The Embassy of India avails itself of this opportunity to renew to the Department of Foreign Affairs, Government of Ireland the assurances of its highest consideration.