dtc agreement between uruguay and liechtenstein
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CONVENTION
between the Principality of Liechtenstein and the Oriental Republic of Uruguay
for the Avoidance of Double Taxaon with respect to Taxes on Income and on Capital
Preamble
The Principality of Liechtenstein and the Oriental Republic of Uruguay, hereinaer referred to
as Contracng States,
whereas the Contracng States recognise that the well-developed economic es between
the Contracng States call for further cooperaon;
whereas the Contracng States wish to develop their relaonship further by cooperang to
their mutual benets in the eld of taxaon; and
whereas the Contracng States wish to conclude a Convenon for the avoidance of double
taxaon with respect to taxes on income and on capital
have agreed as follows:
Arcle 1Persons Covered
This Convenon shall apply to persons who are residents of one or both of the Contracng
States.
Arcle 2
Taxes Covered
(1) This Convenon shall apply to taxes on income and on capital imposed on behalf of aContracng State or of its polical subdivisions or local authories, irrespecve of the
manner in which they are levied.
(2) There shall be regarded as taxes on income and on capital all taxes imposed on total
income, on total capital, or on elements of income or of capital, including taxes on gains from
the alienaon of movable or immovable property, taxes on the total amounts of wages or
salaries paid by enterprises, as well as taxes on capital appreciaon.
(3) The exisng taxes to which this Convenon shall apply are in parcular:
a) in the Principality of Liechtenstein:aa) the personal income tax (Erwerbssteuer);
bb) the corporate income tax (Ertragssteuer);
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cc) the corporaon taxes (Gesellschassteuern);
dd) the real estate capital gains tax (Grundstcksgewinnsteuer);
ee) the wealth tax (Vermgenssteuer); and
) the coupon tax (Couponsteuer);
(hereinaer referred to as Liechtenstein tax);
b) in Uruguay :
aa) the tax on business income (Impuesto a las Rentas de las Acvidades Econmicas
-IRAE- );
bb) the personal income tax (Impuesto a las Rentas de las Personas Fsicas -IRPF-);
cc) the non-residents income tax (Impuesto a las Rentas de los No Residentes
-IRNR-) ;
dd) the tax for social security assistance (Impuesto de Asistencia a la Seguridad Social
-IASS-); and
ee) the capital tax (Impuesto al Patrimonio -IP-);(hereinaer referred to as Uruguayan tax).
(4) This Convenon shall apply also to any idencal or substanally similar taxes that are
imposed aer the date of signature of this Convenon in addion to, or in place of, the
exisng taxes. The competent authories of the Contracng States shall nofy each other of
any signicant changes that have been made in their tax laws.
Arcle 3
General Denions
(1) For the purposes of this Convenon, unless the context otherwise requires:
a) the terms a Contracng State and the other Contracng State mean the
Principality of Liechtenstein or the Oriental Republic of Uruguay as the context
requires;
b) the term Liechtenstein means the Principality of Liechtenstein, and, when used in a
geographical sense, the area in which the tax laws of the Principality of Liechtenstein
apply;
c) the term Uruguay means the Oriental Republic of Uruguay, and, when used in a
geographical sense, the area in which the tax laws of Uruguay apply;
d) the term person includes individuals, companies, trusts, partnerships, investment
funds or schemes, pension schemes, dormant inheritances and any other body of
persons;
e) the term company means any body corporate, as well as enes and special asset
endowments that are treated as a body corporate for tax purposes;
f) the term enterprise applies to the carrying on of any business;
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g) the terms enterprise of a Contracng State and enterprise of the other Contracng
State mean respecvely an enterprise carried on by a resident of a Contracng State
and an enterprise carried on by a resident of the other Contracng State;
h) the term internaonal trac means any transport by a ship or aircra operated by
an enterprise that has its place of eecve management in a Contracng State,
except when the ship or aircra is operated solely between places in the other
Contracng State;
i) the term competent authority means:
aa) in Liechtenstein: the Government of the Principality Liechtenstein or its
authorised representave;
bb) in Uruguay, the Minister of Economy and Finance or his authorized representave
j) the term naonal, in relaon to a Contracng State, means:
aa) any individual possessing the naonality or cizenship of that Contracng State;and
bb) any person other than an individual deriving its status as such from the laws in
force in that Contracng State;
k) the term business includes the performance of professional services and of other
acvies of an independent character.
(2) As regards the applicaon of this Convenon at any me by a Contracng State, any term
not dened therein shall, unless the context otherwise requires, have the meaning that it has
at that me under the law of that State for the purposes of the taxes to which thisConvenon applies, any meaning under the applicable tax laws of that State prevailing over a
meaning given to the term under other laws of that State.
Arcle 4
Resident
(1) For the purposes of this Convenon, the term resident of a Contracng State means
any person who, under the laws of that State, is liable to tax therein by reason of his
domicile, residence, place of incorporaon or establishment, place of management or anyother criterion of a similar nature, and also includes that State and any polical subdivision
or local authority thereof. This term, however, does not include any person who is liable to
tax in that State in respect only of income from sources in that State or capital situated
therein.
(2) Where by reason of the provisions of paragraph 1 an individual is a resident of both
Contracng States, then his status shall be determined as follows:
a) he shall be deemed to be a resident only of the State in which he has a permanent
home available to him; if he has a permanent home available to him in both States,
he shall be deemed to be a resident only of the State with which his personal andeconomic relaons are closer (centre of vital interests);
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b) if the State in which he has his centre of vital interests cannot be determined, or if he
has not a permanent home available to him in either State, he shall be deemed to be
a resident only of the State in which he has an habitual abode;
c) if he has an habitual abode in both States or in neither of them, he shall be deemed
to be a resident only of the State of which he is a naonal;
d) if he is a naonal of both States or of neither of them, the competent authories of
the Contracng States shall sele the queson by mutual agreement.
(3) Where by reason of the provisions of paragraph 1 a person other than an individual is a
resident of both Contracng States, then it shall be deemed to be a resident only of the State
in which its place of eecve management is situated.
Arcle 5
Permanent Establishment
(1) For the purposes of this Convenon, the term permanent establishment means a xed
place of business through which the business of an enterprise is wholly or partly carried on.
(2) The term permanent establishment includes especially:
a) a place of management;
b) a branch;
c) an oce;
d) a factory;
e) a workshop; and
f) a mine, an oil or gas well, a quarry or any other place of extracon of natural
resources.
(3) The term permanent establishment also encompasses:
a) a building site, a construcon, assembly or installaon project or supervisory
acvies in connecon herewith, but only if such site, project or acvies last more
than six months;
b) the furnishing of services, including consultancy services, by an enterprise through
employees or other personnel engaged by the enterprise for such purpose, but only if
acvies of that nature connue (for the same or a connected project) within a
Contracng State for a period or periods aggregang more than nine months within
any twelve-month period.
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(4) Notwithstanding the preceding provisions of this Arcle, the term permanent
establishment shall be deemed not to include:
a) the use of facilies solely for the purpose of storage, display or delivery of goods or
merchandise belonging to the enterprise;
b) the maintenance of a stock of goods or merchandise belonging to the enterprise
solely for the purpose of storage, display or delivery;
c) the maintenance of a stock of goods or merchandise belonging to the enterprise
solely for the purpose of processing by another enterprise;
d) the maintenance of a xed place of business solely for the purpose of purchasing
goods or merchandise or of collecng informaon, for the enterprise;
e) the maintenance of a xed place of business solely for the purpose of carrying on, for
the enterprise, any other acvity of a preparatory or auxiliary character;
f) the maintenance of a xed place of business solely for any combinaon of acvies
menoned in subparagraphs a) to e), provided that the overall acvity of the xed
place of business resulng from this combinaon is of a preparatory or auxiliary
character.
(5) An enterprise shall not be deemed to have a permanent establishment in a Contracng
State merely because it carries on business in that State through a broker, general
commission agent or any other agent of an independent status, provided that such personsare acng in the ordinary course of their business.
(6) The fact that a company which is a resident of a Contracng State controls or is controlled
by a company which is a resident of the other Contracng State, or which carries on business
in that other State (whether through a permanent establishment or otherwise), shall not of
itself constute either company a permanent establishment of the other.
Arcle 6
Income from Immovable Property
(1) Income derived by a resident of a Contracng State from immovable property (including
income from agriculture or forestry) situated in the other Contracng State shall be taxable
only in that other State.
(2) The term immovable property shall have the meaning which it has under the law of the
Contracng State in which the property in queson is situated. The term shall in any case
include property accessory to immovable property, livestock and equipment used in
agriculture and forestry, rights to which the provisions of general law respecng landed
property apply, usufruct of immovable property and rights to variable or xed payments asconsideraon for the working of, or the right to work, mineral deposits, sources and other
natural resources; ships, boats and aircra shall not be regarded as immovable property.
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(3) The provisions of paragraph 1 shall apply to income derived from the direct use, leng,
or use in any other form of immovable property.
(4) The provisions of paragraphs 1 and 3 shall also apply to the income from immovable
property of an enterprise.
Arcle 7
Business Prots
(1) The prots of an enterprise of a Contracng State shall be taxable only in that State
unless the enterprise carries on business in the other Contracng State through a permanent
establishment situated therein. If the enterprise carries on business as aforesaid, the prots
of the enterprise may be taxed in the other State but only so much of them as is aributable
to that permanent establishment.
(2) Subject to the provisions of paragraphs 3 and 8, where an enterprise of a Contracng
State carries on business in the other Contracng State through a permanent establishment
situated therein, there shall in each Contracng State be aributed to that permanent
establishment the prots which it might be expected to make if it were a disnct and
separate enterprise engaged in the same or similar acvies under the same or similar
condions and dealing wholly independently with the enterprise of which it is a permanent
establishment.
(3) In determining the prots of a permanent establishment, there shall be allowed asdeducons expenses which are incurred for the purposes of the permanent establishment,
including execuve and general administrave expenses so incurred, whether in the State in
which the permanent establishment is situated or elsewhere.
(4) Insofar as it has been customary in a Contracng State to determine the prots to be
aributed to a permanent establishment on the basis of an apporonment of the total
prots of the enterprise to its various parts, nothing in paragraph 2 shall preclude that
Contracng State from determining the prots to be taxed by such an apporonment as may
be customary; the method of apporonment adopted shall, however, be such that the result
shall be in accordance with the principles contained in this Arcle.
(5) No prots shall be aributed to a permanent establishment by reason of the mere
purchase by that permanent establishment of goods or merchandise for the enterprise.
(6) For the purposes of the preceding paragraphs, the prots to be aributed to the
permanent establishment shall be determined by the same method year by year unless there
is good and sucient reason to the contrary.
(7) Where prots include items of income which are dealt with separately in other Arcles of
this Convenon, then the provisions of those Arcles shall not be aected by the provisionsof this Arcle.
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(8) Where, in accordance with paragraph 2, a Contracng Party adjusts the prots that are
aributable to a permanent establishment of an enterprise of one of the Contracng Pares
and taxes accordingly prots of the enterprise that have been charged to tax in the other
Party, the other Party shall, to the extent necessary to eliminate double taxaon on these
prots, make an appropriate adjustment to the amount of the tax charged on those prots.
In determining such adjustment, the competent authories of the Contracng Pares shall if
necessary consult each other.
Arcle 8
Shipping, Inland Waterways Transport and Air Transport
(1) Prots from the operaon of ships or aircra in internaonal trac shall be taxable only
in the Contracng State in which the place of eecve management of the enterprise is
situated.
(2) Prots from the operaon of boats engaged in inland waterways transport shall be
taxable only in the Contracng State in which the place of eecve management of the
enterprise is situated.
(3) If the place of eecve management of a shipping enterprise or of an inland waterways
transport enterprise is aboard a ship or boat, then it shall be deemed to be situated in the
Contracng State in which the home harbour of the ship or boat is situated, or, if there is no
such home harbour, in the Contracng State of which the operator of the ship or boat is a
resident.
(4) The provisions of paragraph 1 shall also apply to prots from the parcipaon in a pool, a
joint business or an internaonal operang agency.
Arcle 9
Associated Enterprises
(1) Where
a) an enterprise of a Contracng State parcipates directly or indirectly in the
management, control or capital of an enterprise of the other Contracng State; or
b) the same persons parcipate directly or indirectly in the management, control or
capital of an enterprise of a Contracng State and an enterprise of the other
Contracng State;
and in either case condions are made or imposed between the two enterprises in their
commercial or nancial relaons which dier from those which would be made between
independent enterprises, then any prots which would, but for those condions, have
accrued to one of the enterprises, but, by reason of those condions, have not so accrued,
may be included in the prots of that enterprise and taxed accordingly.
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(2) Where a Contracng State includes in the prots of an enterprise of that State and taxes
accordingly prots on which an enterprise of the other Contracng State has been charged
to tax in that other State and the prots so included are prots which would have accrued to
the enterprise of the rst-menoned State if the condions made between the two
enterprises had been those which would have been made between independent enterprises,
then that other State shall make an appropriate adjustment to the amount of the tax charged
therein on those prots. In determining such adjustment, due regard shall be had to the
other provisions of this Convenon and the competent authories of the Contracng States
shall if necessary consult each other.
Arcle 10
Dividends
(1) Dividends paid by a company which is a resident of a Contracng State to a resident of
the other Contracng State may be taxed in that other State.
(2) However, such dividends may also be taxed in the Contracng State of which the
company paying the dividends is a resident and according to the laws of that State, but if the
benecial owner of the dividends is a resident of the other Contracng State, the tax so
charged shall not exceed:
a) 5 per cent of the gross amount of the dividends if the benecial owner is a person
other than an individual which holds directly at least 10 per cent of the capital of the
company paying the dividends;
b) 10 per cent of the gross amount of the dividends in all other cases.
This paragraph shall not aect the taxaon of the company in respect of the prots out of
which the dividends are paid.
(3) The term "dividends" as used in this Arcle means income from shares, "jouissance"
shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-
claims, parcipang in prots, as well as income from other corporate rights which is
subjected to the same taxaon treatment as income from shares by the laws of the State of
which the company making the distribuon is a resident.
(4) The provisions of paragraphs 1 and 2 shall not apply if the benecial owner of the
dividends, being a resident of a Contracng State, carries on business in the other
Contracng State of which the company paying the dividends is a resident, through a
permanent establishment situated therein, and the holding in respect of which the dividends
are paid is eecvely connected with such permanent establishment. In such case the
provisions of Arcle 7 shall apply.
(5) Where a company which is a resident of a Contracng State derives prots or income
from the other Contracng State, that other State may not impose any tax on the dividends
paid by the company, except insofar as such dividends are paid to a resident of that otherState or insofar as the holding in respect of which the dividends are paid is eecvely
connected with a permanent establishment situated in that other State, nor subject the
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company's undistributed prots to a tax on the company's undistributed prots, even if the
dividends paid or the undistributed prots consist wholly or partly of prots or income
arising in such other State.
Arcle 11
Interest
(1) Interest arising in a Contracng State and paid to a resident of the other Contracng State
may be taxed in that other State.
(2) However, such interest may also be taxed in the Contracng State in which it arises and
according to the laws of that State, but if the benecial owner of the interest is a resident of
the other Contracng State, the tax so charged shall not exceed 10 per cent of the gross
amount of the interest.
(3) Notwithstanding the provisions of paragraph 2, interest arising in a Contracng State andpaid to a resident of the other Contracng State who is the benecial owner thereof shall be
taxable only in that other State to the extent that such interest is paid:
a) on a loan granted by the Central Bank or any other ocial enty;
b) in connecon with the sale on credit of any industrial, commercial or scienc
equipment; or
c) on a loan granted by a bank for at least three years for nancing investment projects.
(4) The term interest as used in this Arcle means income from debt-claims of every kind,whether or not secured by mortgage and whether or not carrying a right to parcipate in the
debtor's prots, and in parcular, income from Government securies and income from
bonds or debentures, including premiums and prizes aaching to such securies, bonds or
debentures. However, the term interest shall not include income referred to in Arcle 10.
Penalty charges for late payment shall not be regarded as interest for the purpose of this
Arcle.
(5) The provisions of paragraphs 1, 2 and 3 shall not apply if the benecial owner of the
interest, being a resident of a Contracng State, carries on business in the other Contracng
State in which the interest arises, through a permanent establishment situated therein, andthe debt-claim in respect of which the interest is paid is eecvely connected with such
permanent establishment . In such case the provisions of Arcle 7 shall apply.
(6) Interest shall be deemed to arise in a Contracng State when the payer is a resident of
that State. Where, however, the person paying the interest, whether he is a resident of a
Contracng State or not, has in a Contracng State a permanent establishment in connecon
with which the indebtedness on which the interest is paid was incurred, and such interest is
borne by such permanent establishment, then such interest shall be deemed to arise in the
State in which the permanent establishment is situated.
(7) Where, by reason of a special relaonship between the payer and the benecial owner or
between both of them and some other person, the amount of the interest, having regard to
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the debt-claim for which it is paid, exceeds the amount which would have been agreed upon
by the payer and the benecial owner in the absence of such relaonship, the provisions of
this Arcle shall apply only to the last-menoned amount. In such case, the excess part of
the payments shall remain taxable according to the laws of each Contracng State, due
regard being had to the other provisions of this Convenon.
Arcle 12
Royales
(1) Royales arising in a Contracng State and paid to a resident of the other Contracng
State may be taxed in that other State.
(2) However, such royales may also be taxed in the Contracng State in which they arise and
according to the laws of that State, but if the benecial owner of the royales is a resident of
the other Contracng State, the tax so charged shall not exceed 10 per cent of the gross
amount of the royales.
(3) The term royales as used in this Arcle means payments of any kind received as a
consideraon for the use of, or the right to use, any copyright of literary, arsc or scienc
work including cinematograph lms and lms or tapes for television or radio broadcasng,
any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or
the right to use, industrial, commercial or scienc equipment, or informaon concerning
industrial, commercial or scienc experience.
(4) The provisions of paragraphs 1 and 2 shall not apply if the benecial owner of the
royales, being a resident of a Contracng State, carries on business in the other ContracngState in which the royales arise through a permanent establishment situated therein, and
the right or property in respect of which the royales are paid is eecvely connected with
such permanent establishment. In such case the provisions of Arcle 7 shall apply.
(5) Royales shall be deemed to arise in a Contracng State when the payer is a resident of
that State. Where, however, the person paying the royales, whether a resident of a
Contracng State or not, has in a Contracng State a permanent establishment in connecon
with which the obligaon to pay the royales was incurred, and such royales are borne by
such permanent establishment, then such royales shall be deemed to arise in the State in
which the permanent establishment is situated.
(6) Where, by reason of a special relaonship between the payer and the benecial owner or
between both of them and some other person, the amount of the royales, having regard to
the use, right or informaon for which they are paid, exceeds the amount which would have
been agreed upon by the payer and the benecial owner in the absence of such relaonship,
the provisions of this Arcle shall apply only to the last-menoned amount. In such case, the
excess part of the payments shall remain taxable according to the laws of each Contracng
State, due regard being had to the other provisions of this Convenon.
Arcle 13
Capital Gains
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(1) Gains derived by a resident of a Contracng State from the alienaon of immovable
property referred to in Arcle 6 and situated in the other Contracng State shall be taxable in
that other State.
(2) Gains from the alienaon of movable property forming part of the business property of a
permanent establishment which an enterprise of a Contracng State has in the other
Contracng State, including such gains from the alienaon of such a permanent
establishment (alone or with the whole enterprise), may be taxed in that other State.
(3) Gains from the alienaon of ships or aircra operated in internaonal trac, boats
engaged in inland waterways transport or movable property pertaining to the operaon of
such ships, aircra or boats, shall be taxable only in the Contracng State in which the place
of eecve management of the enterprise is situated.
(4) Gains derived by a resident of a Contracng State from the alienaon of shares derivingmore than 50 per cent of their value directly or indirectly from immovable property situated
in the other Contracng State may be taxed in that other State.
(5) Gains from the alienaon of any property, other than that referred to in paragraphs 1, 2,
3 and 4, shall be taxable only in the Contracng State of which the alienator is a resident.
Arcle 14
Income from Employment
(1) Subject to the provisions of Arcles 15, 17 and 18, salaries, wages and other similarremuneraon derived by a resident of a Contracng State in respect of an employment shall
be taxable only in that State unless the employment is exercised in the other Contracng
State. If the employment is so exercised, such remuneraon as is derived therefrom may be
taxed in that other State.
(2) Notwithstanding the provisions of paragraph 1, remuneraon derived by a resident of a
Contracng State in respect of an employment exercised in the other Contracng State shall
be taxable only in the rst-menoned State if:
a) the recipient is present in the other State for a period or periods not exceeding in the
aggregate 183 days in any twelve month period commencing or ending in the scalyear concerned; and
b) the remuneraon is paid by, or on behalf of, an employer who is not a resident of the
other State; and
c) the remuneraon is not borne by a permanent establishment which the employer has
in the other State.
(3) Notwithstanding the preceding provisions of this Arcle, remuneraon derived in respect
of an employment exercised aboard a ship or aircra operated in internaonal trac, oraboard a boat engaged in inland waterways transport, may be taxed in the Contracng State
in which the place of eecve management of the enterprise is situated.
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Arcle 15
Directors Fees
Directors fees and other similar payments derived by a resident of a Contracng State in his
capacity as a member of the board of directors of a company which is a resident of the other
Contracng State may be taxed in that other State.
Arcle 16
Arsts and Sportsmen
(1) Notwithstanding the provisions of Arcles 7 and 14, income derived by a resident of a
Contracng State as an entertainer, such as a theatre, moon picture, radio or television
arst, or a musician, or as a sportsman, from his personal acvies as such exercised in theother Contracng State, may be taxed in that other State.
(2) Where income in respect of personal acvies exercised by an entertainer or a sportsman
in his capacity as such accrues not to the entertainer or sportsman himself but to another
person, that income may, notwithstanding the provisions of Arcles 7 and 14, be taxed in the
Contracng State in which the acvies of the entertainer or sportsman are exercised.
Arcle 17
Pensions
(1) Subject to the provisions of paragraph 2 of Arcle 18, pensions and other similar
remuneraon (including lump sum payment) paid to a resident of a Contracng State in
consideraon of past employment may be taxed in that State.
(2) Such pensions and other similar remuneraon (including lump sum payment) may also be
taxed in the Contracng State in which they arise and according to the laws of that State.
However, the tax so charged shall not exceed 10 per cent of the gross amount of the
payment.
(3) Pensions and other similar remuneraon (including lump sum payment) shall be deemed
to arise in a Contracng State to the extent that these contribuons, provisions or the
pensions or other similar remuneraon have given rise in that State to tax deducon,
reducon of tax or any other tax relief under the ordinary rules of its tax laws.
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Arcle 18
Government Service
(1)
a) Salaries, wages and other similar remuneraon paid by a Contracng State, a polical
subdivision or a local authority thereof or some other legal enty under public law of
that State to an individual in respect of services rendered to that State, subdivision or
authority or other legal enty under public law of that State shall be taxable only in
that State.
b) However, such salaries, wages and other similar remuneraon shall be taxable only in
the other Contracng State if the services are rendered in that State and the
individual is a resident of that State who:
aa) is a naonal of that State; or
bb) did not become a resident of that State solely for the purpose of rendering the
services.
(2)
a) Notwithstanding the provisions of paragraph 1, pensions and other similar
remuneraon paid by, or out of funds created by, a Contracng State or a polical
subdivision or a local authority thereof or some other legal enty under public law of
that State to an individual in respect of services rendered to that State, subdivision or
authority or other legal enty under public law of that State shall be taxable only in
that State.
b) However, such pensions and other similar remuneraon shall be taxable only in theother Contracng State if the individual is a resident of, and a naonal of, that State.
(3) The provisions of Arcles 14, 15, 16, and 17 shall apply to salaries, wages, pensions, and
other similar remuneraon in respect of services rendered in connecon with a business
carried on by a Contracng State, a polical subdivision or a local authority thereof or some
other legal enty under public law of that State.
Arcle 19
Vising Professors and TeachersAn individual who visits a Contracng State at the invitaon of that State or of a university,
college, school, museum or other cultural instuon of that State or under an ocial
programme of cultural exchange for a period not exceeding three years solely for the
purpose of teaching, giving lectures or carrying out research at such instuon and who is,
or was immediately before that visit, a resident of the other Contracng State shall be
exempt from tax in the rst-menoned State on his remuneraon for such acvity.
Arcle 20
StudentsPayments which a student or business apprence who is or was immediately before vising a
Contracng State a resident of the other Contracng State and who is present in the rst-
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menoned State solely for the purpose of his educaon or training receives for the purpose
of his maintenance, educaon or training shall not be taxed in that State, provided that such
payments arise from sources outside that State.
Arcle 21
Other Income
(1) Items of income of a resident of a Contracng State, wherever arising, not dealt with in
the foregoing Arcles of this Convenon shall be taxable only in that State.
(2) The provisions of paragraph 1 shall not apply to income, other than income from
immovable property as dened in paragraph 2 of Arcle 6, if the recipient of such income,
being a resident of a Contracng State, carries on business in the other Contracng State
through a permanent establishment situated therein and the right or property in respect of
which the income is paid is eecvely connected with such permanent establishment. Insuch case the provisions of Arcle 7 shall apply.
Arcle 22
Capital
(1) Capital represented by immovable property referred to in Arcle 6, owned by a resident
of a Contracng State and situated in the other Contracng State, shall be taxable only in
that other State.
(2) Capital represented by movable property forming part of the business property of a
permanent establishment which an enterprise of a Contracng State has in the other
Contracng State may be taxed in that other State.
(3) Capital represented by ships and aircra operated in internaonal trac and by boats
engaged in inland waterways transport, and by movable property pertaining to the operaon
of such ships, aircra and boats, shall be taxable only in the Contracng State in which the
place of eecve management of the enterprise is situated.
(4) All other elements of capital of a resident of a Contracng State shall be taxable only inthat State.
Arcle 23
Eliminaon of Double Taxaon
(1) Subject to the provisions of the Law of Liechtenstein regarding the eliminaon of double
taxaon which shall not aect the general principle hereof, double taxaon shall be
eliminated as follows:
a) Where a resident of Liechtenstein derives income or owns capital which, inaccordance with the provisions of this Convenon, may be taxed in Uruguay,
Liechtenstein shall, subject to the provisions of subparagraphs b and c, exempt such
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income or capital from tax, but may nevertheless, in calculang the amount of tax on
the remaining income or capital of such resident, take into account the exempted
income or capital.
b) Where a resident of Liechtenstein derives income which, in accordance with
paragraph 2 of Arcle 10, paragraph 2 of Arcle 11, paragraph 2 of Arcle 12, Arcle
14, Arcle 16 and paragraph 2 of Arcle 17 of this Convenon, may be taxed in
Uruguay, Liechtenstein shall credit against Liechtenstein tax on this income the tax
paid in accordance with the law of Uruguay and with the provisions of this
Convenon. The amount of tax to be credit must not, however, exceed the
Liechtenstein tax due on the income derived from Uruguay.
c) Notwithstanding subparagraph b, income from dividends within the meaning of
paragraph 2 subparagraph a and b of Arcle 10 paid by a company that is a resident
of Uruguay to a company that is a resident of Liechtenstein and that are not
deducble in determining the prots of the payor, shall not be taxed in Liechtenstein.
(2) Subject to the provisions of the Law of Uruguay regarding the eliminaon of double
taxaon which shall not aect the general principle hereof, double taxaon shall be
eliminated as follows:
a) Residents in Uruguay, deriving income which has, in accordance with law of
Liechtenstein and under the provisions of this Convenon, been subject to taxaon in
Liechtenstein, may credit the tax so paid against any Uruguayan tax payable in respect
of the same income, subject to the applicable provisions of the law of Uruguay. The
same shall also apply in respect of capital which has, in accordance with law of
Liechtenstein and under the provisions of this Convenon, been subject to taxaon inLiechtenstein; the capital tax so paid may be credited against any Uruguayan tax
payable in respect of the same capital, subject to the applicable provisions of the law
of Uruguay. Such deducon shall not, however, exceed that part of the Uruguayan tax
on income or capital, as computed before the deducon is given.
b) Where, in accordance with any provision of the Convenon, income derived or capital
owned by a resident of Uruguay is exempt from tax in Uruguay, Uruguay may
nevertheless, in calculang the amount of tax on the remaining income or capital of
such resident, take into account the exempted income or capital.
Arcle 24
Non-Discriminaon
(1) Naonals of a Contracng State shall not be subjected in the other Contracng State to
any taxaon or any requirement connected therewith, which is other or more burdensome
than the taxaon and connected requirements to which naonals of that other State in the
same circumstances, in parcular with respect to residence, are or may be subjected. This
provision shall, notwithstanding the provisions of Arcle 1, also apply to persons who are not
residents of one or both of the Contracng States.
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(2) Stateless persons who are residents of a Contracng State shall not be subjected in either
Contracng State to any taxaon or any requirement connected therewith, which is other or
more burdensome than the taxaon and connected requirements to which naonals of the
State concerned in the same circumstances, in parcular with respect to residence, are or
may be subjected.
(3)
a) The taxaon on a permanent establishment which an enterprise of a Contracng
State has in the other Contracng State shall not be less favourably levied in that
other State than the taxaon levied on enterprises of that other State carrying on the
same acvies. This provision shall not be construed as obliging a Contracng State
to grant to residents of the other Contracng State any personal allowances, reliefs
and reducons for taxaon purposes on account of civil status or family
responsibilies which it grants to its own residents.
b) Where a permanent establishment situated in a State receives dividends, interest orroyales arising in the other State corresponding to property or rights eecvely
connected with that permanent establishment, such income shall be taxable in the
other State in accordance with the provisions of paragraph 2 of Arcle 10, paragraph
2 of Arcle 11 and paragraph 2 of Arcle 12. The rst-menoned State shall eliminate
double taxaon according to the terms set forth in paragraphs 1 and 2 of Arcle 23.
This provision shall apply irrespecve of the locaon of the head oce of the
enterprise on which the permanent establishment depends.
(4) Except where the provisions of paragraph 1 of Arcle 9, paragraph 7 of Arcle 11, or
paragraph 6 of Arcle 12, apply, interest, royales and other disbursements paid by anenterprise of a Contracng State to a resident of the other Contracng State shall, for the
purpose of determining the taxable prots of such enterprise, be deducble under the same
condions as if they had been paid to a resident of the rst-menoned State. Similarly, any
debts of an enterprise of a Contracng State to a resident of the other Contracng State
shall, for the purpose of determining the taxable capital of such enterprise, be deducble
under the same condions as if they had been contracted to a resident of the rst-
menoned State.
(5) Enterprises of a Contracng State, the capital of which is wholly or partly owned or
controlled, directly or indirectly, by one or more residents of the other Contracng State,shall not be subjected in the rst-menoned State to any taxaon or any requirement
connected therewith which is other or more burdensome than the taxaon and connected
requirements to which other similar enterprises of the rst-menoned State are or may be
subjected.
(6) The provisions of this Arcle shall, notwithstanding the provisions of Arcle 2, apply to
taxes of every kind and descripon.
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Arcle 25
Mutual Agreement Procedure
(1) Where a person considers that the acons of one or both of the Contracng States result
or will result for him in taxaon not in accordance with the provisions of this Convenon, he
may, irrespecve of the remedies provided by the domesc law of those States, present his
case to the competent authority of the Contracng State of which he is a resident or, if his
case comes under paragraph 1 of Arcle 24, to that of the Contracng State of which he is a
naonal. The case must be presented within three years from the rst nocaon of the
acon resulng in taxaon not in accordance with the provisions of this Convenon.
(2) The competent authority shall endeavour, if the objecon appears to it to be jused and
if it is not itself able to arrive at a sasfactory soluon, to resolve the case by mutual
agreement with the competent authority of the other Contracng State, with a view to the
avoidance of taxaon which is not in accordance with this Convenon. Any agreementreached shall be implemented notwithstanding any me limits in the domesc law of the
Contracng States.
(3) The competent authories of the Contracng States shall endeavour to resolve by mutual
agreement any dicules or doubts arising as to the interpretaon or applicaon of this
Convenon. They may also consult together for the eliminaon of double taxaon in cases
not provided for in this Convenon. To that regard, it is not necessary to present a case
according to paragraph 1.
(4) The competent authories of the Contracng States may communicate with each otherdirectly, including through a joint commission consisng of themselves or their
representaves, for the purpose of reaching an agreement in the sense of the preceding
paragraphs.
(5) Where,
a) under paragraph 1, a person has presented a case to the competent authority of a
Contracng State on the basis that the acons of one or both of the Contracng
States have resulted for that person in taxaon not in accordance with the provisions
of this Convenon; and
b) the competent authories are unable to reach an agreement to resolve that case
pursuant to paragraph 2 within two years from the presentaon of the case to the
competent authority of the other Contracng State;
any unresolved issues arising from the case shall be submied to arbitraon if the person so
requests. These unresolved issues shall not, however, be submied to arbitraon if a
decision on these issues has already been rendered by a court or administrave tribunal of
either State. Unless a person directly aected by the case does not accept the mutual
agreement that implements the arbitraon decision, that decision shall be binding on both
Contracng States and shall be implemented notwithstanding any me limits in the domesc
laws of these States. The competent authories of the Contracng States shall by mutualagreement sele the mode of applicaon of this paragraph.
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Arcle 26
Exchange of Informaon
(1) The competent authories of the Contracng States shall exchange such informaon as is
foreseeably relevant for carrying out the provisions of this Convenon or to the
administraon or enforcement of the domesc laws concerning taxes of every kind and
descripon imposed on behalf of the Contracng States, or of their polical subdivisions or
local authories, insofar as the taxaon thereunder is not contrary to this Convenon. The
exchange of informaon is not restricted by Arcles 1 and 2.
(2) Any informaon received under paragraph 1 by a Contracng State shall be treated as
secret in the same manner as informaon obtained under the domesc laws of that State
and shall be disclosed only to persons or authories (including courts and administrave
bodies) concerned with the assessment or collecon of, the enforcement or prosecuon in
respect of, the determinaon of appeals in relaon to the taxes referred to in paragraph 1, orthe oversight of the above. Such persons or authories shall use the informaon only for
such purposes. They may disclose the informaon in public court proceedings or in judicial
decisions.
(3) In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a
Contracng State the obligaon:
a) to carry out administrave measures at variance with the laws and administrave
pracce of that or of the other Contracng State;
b) to supply informaon which is not obtainable under the laws or in the normal courseof the administraon of that or of the other Contracng State;
c) to supply informaon which would disclose any trade, business, industrial,
commercial or professional secret or trade process, or informaon the disclosure of
which would be contrary to public policy (ordre public).
(4) If informaon is requested by a Contracng State in accordance with this Arcle, the
other Contracng State shall use its informaon gathering measures to obtain the requested
informaon, even though that other State may not need such informaon for its own tax
purposes. The obligaon contained in the preceding sentence is subject to the limitaons ofparagraph 3 but in no case shall such limitaons be construed to permit a Contracng State
to decline to supply informaon solely because it has no domesc interest in such
informaon.
(5) In no case shall the provisions of paragraph 3 be construed to permit a Contracng State
to decline to supply informaon solely because the informaon is held by a bank, other
nancial instuon, nominee or person acng in an agency or a duciary capacity or because
it relates to ownership interests in a person.
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Arcle 27
Members of Diplomac Missions and Consular Posts
Nothing in this Convenon shall aect the scal privileges of members of diplomac missions
or consular posts under the general rules of internaonal law or under the provisions of
special agreements.
Arcle 28
Protocol
The aached Protocol shall be an integral part of this Convenon.
Arcle 29Entry into Force
(1) The Contracng States shall nofy each other in wring, through diplomac channels,
that the procedures required by its law for the entry into force of this Convenon have been
sased. This Convenon shall enter into force on the date of receipt of the last nocaon.
(2) This Convenon shall have eect:
a) in respect of taxes withheld at source, to income derived on or aer 1 January of the
calendar year next following the year in which this Convenon enters into force;
b) in respect of other taxes on income and taxes on capital, to taxes chargeable for any
taxable year beginning on or aer 1 January of the calendar year next following the
year in which this Convenon enters into force.
Arcle 30
Terminaon
This Convenon shall remain in force unl terminated by a Contracng State. Either
Contracng State may terminate this Convenon, through diplomac channels, by givingnoce of terminaon at least six months before the end of any calendar year following the
h year aer the entry into force. In such event, this Convenon shall cease to have eect:
a) in respect of taxes withheld at source, to income derived on or aer 1 January of the
calendar year next following the year in which the noce is given;
b) in respect of other taxes on income and taxes on capital, to taxes chargeable for any
taxable year beginning on or aer 1 January of the calendar year next following the
year in which the noce is given.
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In witness whereof, the undersigned, duly authorised thereto, have signed this Convenon.
Done at Bern this eighteen day of October 2010, in duplicate, in the English and Spanish
languages, each text being equally authenc.
For the Principality of Liechtenstein:
(gez. Hubert Bchel)
For the Oriental Republic of Uruguay:
(gez. Fernando Lorenzo)
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Protocol
At the signing today of the Convenon between the Principality of Liechtenstein and the
Oriental Republic of Uruguay for the Avoidance of Double Taxaon with respect to Taxes onIncome and on Capital, the undersigned have agreed upon the following provisions, which
shall form an integral part of this Convenon:
1. With respect to paragraph 1 of Arcle 4:
a) a company incorporated in Liechtenstein or, if incorporated outside Liechtenstein,
being managed or controlled in Liechtenstein, shall be considered to be a resident of
Liechtenstein;
b) any person other than an individual constuted under the laws of and established in
Liechtenstein or, if constuted and established outside Liechtenstein, being managedor controlled in Liechtenstein, shall be considered to be a resident of Liechtenstein;
c) the enes included in Arcle 7 of Title 7 Texto Ordenado 1996 under the law of
Uruguay, shall be considered to be a resident of Uruguay.
2. For the purpose of this Convenon it is understood that investment fund or scheme
means a scheme or arrangement that is recognised under the legislaon of a Contracng
State regulaon funds.
3. For the purpose of this Convenon it is understood that pension schemes means a schemeor arrangement that is recognised under the legislaon of a Contracng State regulaon
pension schemes.
4. With respect to Arcle 26, it is understood that:
a) this arcle only obliges the Contracng States to exchange informaon upon request
and only in respect of taxable periods beginning on or aer the entry into force of the
Convenon;
b) exchange of informaon according to paragraph 1 refers to informaon that is
foreseeably relevant to the determinaon, assessment and collecon of such taxeswith respect to persons subject to such taxes, or the invesgaon in or prosecuon of
criminal tax maers in relaon to such persons;
c) the informaon exchanged
aa) may not be used for any purpose other than for the purposes stated in paragraph
1 without the express wrien consent of the competent authority of the
requested Contracng State; and
bb) must not be disclosed to any other State or sovereign territory not party to
this Convenon;
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d) personal data may be transmied to the extent necessary for the exchange of
informaon according to this arcle and subject to the provisions of the law of the
supplying Contracng State;
e) informaon received by the requested Contracng State in conjuncon with a
request for assistance under this arcle shall likewise be treated as condenal in the
requested Contracng State;
f) in addion to the circumstances described in paragraph 3, a request for exchange of
informaon can be declined, if the request for informaon is not in conformity with
this Agreement, does not meet the requirements laid out in the subsequent
subparagraph g, or if:
aa) the applicant Contracng State has not pursued all means available in its own
territory to obtain the informaon, except where recourse to such means would
give rise to disproporonate diculty; or
bb) the informaon is requested by the applicant Contracng State to administer orenforce a provision of the tax law of the applicant Contracng State, or any
requirement connected therewith, which discriminates against a naonal of the
requested Contracng State as compared with a naonal of the applicant
Contracng State in the same circumstances.
cc) the informaon requested is subject to legal privilege.
g) any request for informaon shall in all cases specify in wring:
aa) the identy of the person under examinaon or invesgaon;
bb) the taxable period for which the informaon is sought;
cc) a statement of the informaon sought including its nature and the form in whichthe applicant Contracng State wishes to receive the informaon from the
requested Contracng State;
dd) the maer under the applicant Contracng States tax law with respect to
which the informaon is sought;
ee) grounds for believing that the informaon requested is foreseeably relevant to
the administraon and enforcement of the domesc tax laws of the applicant
Contracng State with regard to the person specied in subparagraph aa);
) grounds for believing that the informaon requested is held in the requested
Contracng State or is in the possession or control of a person within the
jurisdicon of the requested Contracng State;gg) to the extent known, the name and address of any person believed to be in
possession of the requested informaon;
hh) a statement that the request is in conformity with the law and administrave
pracces of the applicant Contracng State, that if the requested informaon was
within the jurisdicon of the applicant Contracng State then the competent
authority of the applicant Contracng State would be able to obtain the
informaon under the laws or in the normal course of administrave pracce of
the applicant Contracng State and that it is in conformity with this Agreement;
and
ii) a statement that the applicant Contracng State has pursued all means availablein its own territory to obtain the informaon, except those that would give rise to
disproporonate dicules.
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In witness whereof, the undersigned, duly authorised thereto, have signed this Protocol.
Done at Bern this eighteen day of October 2010, in duplicate, in the English and Spanish
languages, each text being equally authenc.
For the Principality of Liechtenstein:
(gez. Hubert Bchel)
For the Oriental Republic of Uruguay:
(gez. Fernando Lorenzo)
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