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of <h1>Directors' fees may be taxed in the company's resident state under Double Tax Avoidance Agreement to prevent double taxation.</h1> Directors' fees and similar payments received by a resident of one Contracting State for serving on the board of directors of a company located in the other Contracting State may be subject to taxation in the latter State. This provision is part of the Double Tax Avoidance Agreement between the two States, ensuring that such income can be taxed in the State where the company is resident, thereby preventing double taxation on the same income.
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