Dividend taxation: domestic exemption currently prevents treaty withholding, so no withholding on Indian-company dividends paid abroad. The Protocol clarifies that Indian-company dividends are presently exempt under domestic law and thus not subject to treaty withholding while that exemption continues; capital gains on shares acquired before a specified cutoff date are taxable only in the alienator's State of residence; paragraph 3 of Article 24 does not bar a State from taxing profits of a non-resident company's permanent establishment at a higher rate than for similar domestic companies; and Article 27 does not oblige a State to act contrary to its laws, administrative practices, or public policy in tax collection.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Dividend taxation: domestic exemption currently prevents treaty withholding, so no withholding on Indian-company dividends paid abroad.
The Protocol clarifies that Indian-company dividends are presently exempt under domestic law and thus not subject to treaty withholding while that exemption continues; capital gains on shares acquired before a specified cutoff date are taxable only in the alienator's State of residence; paragraph 3 of Article 24 does not bar a State from taxing profits of a non-resident company's permanent establishment at a higher rate than for similar domestic companies; and Article 27 does not oblige a State to act contrary to its laws, administrative practices, or public policy in tax collection.
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