Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.
ARTICLE 23
Elimination of Double Taxation
(1) In Armenia double taxation shall be eliminated as follows:
- Where a resident of Armenia derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Austria, Armenia shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Austria; and as a deduction from the tax on the capital of that resident, an amount equal to the capital tax paid in Austria. Such deduction in either case shall not, however, exceed that part of the income tax or capital tax, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in Austria.
(2) In Austria double taxation shall be eliminated as follows:
- (a) Where a resident of Austria derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Armenia, Austria shall, subject to the provisions of sub-paragraphs (b) and (c) and paragraph (3), exempt such income or capital from tax.
- (b) Where a resident of Austria derives items of income which, in accordance with the provisions of paragraphs (2) of Articles 10, 11 and 12, paragraphs (4) of Article 13 and paragraph (3) of Article 21 may be taxed in Armenia, Austria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Armenia. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Armenia.
- (c) Dividends in the sense of sub-paragraph (a) of paragraph (2) of Article 10 paid by a company which is a resident of Armenia to a company which is a resident of Austria shall be exempt from tax in Austria, subject to the relevant provisions of the domestic law of Austria, however, notwithstanding any deviating minimum participation requirements provided for by that law.
(3) Where in accordance with any provision of the Convention income derived or capital owned by a resident of a Contracting State is exempt from tax in that State, such State may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.