Article 24 - Avoidance of double taxation - Mongolia

ARTICLE 24 AVOIDANCE OF DOUBLE TAXATION 1. The laws in force in either of the Contracting States will continue to govern the taxation of income in the respective Contracting States except where provisions to the contrary are made in this Agreement. 2. Where a resident of India derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in Mongolia, India shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in Mongolia, whether directly or by deduction; and as a deduction from the tax on the capital of that resident an amount equal to the capital tax paid in Mongolia. Such deduction in either case shall not, however, exceed that part of income-tax or tax on capital (as paid before the deduction is given), which is attributable to the income or the capital which may be taxed in Mongolia. 3. In the case of Mongolia, the double taxation shall be avoided by a method which is identical to that mentioned in paragraph 2. 4. The tax payable in the Contracting State mentioned in paragraphs 2 and 3 of this Article shall be deemed to include the tax which would have been payable but for the tax incentives granted under the laws of the Contracting State and which are designed to promote economic development. 5. Income which in accordance with the provisions of this Agreement, is not to be subjected to tax in a Contracting State may be taken into account for calculating the rate of tax to be imposed in that Contracting State.