Article 23 - Elimination Of Double Taxation - kuwait

ARTICLE 23 ELIMINATION OF DOUBLE TAXATION 1. The laws in force in either of the Contracting States shall continue to govern the taxation in the respective Contracting State except where provisions to the contrary are made in this Agreement. 2. It is agreed that double taxation shall be avoided in accordance with the following paragraphs of this Article: a) in the case of India : Where a resident of India derives income which, in accordance with the provisions of this Agreement, may be taxed in both - Kuwait and India, India shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in Kuwait. Such deduction in either case shall not, however, exceed that part of the tax on income as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in Kuwait. b) in the case of Kuwait: Where a resident of Kuwait derives income which, in accordance with the provisions of this Agreement, may be taxed in both - India and Kuwait, Kuwait shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in India. Such deduction in either case shall not, however, exceed that part of the tax on income as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in India. 3. The tax payable in the Contracting State mentioned in paragraphs 2 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.