TaxTMI 
TaxTMI 
General Definitions
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....rried on by a resident of the other Contracting State; the terms also include an enterprise carried on by a resident of a Contracting State through an entity that is treated as fiscally transparent in that Contracting State; (d) the term "enterprise" applies to the carrying on of any business; (e) the term "business" includes the performance of professional services and of other activities of an independent character; (f) the term "international traffic" means any transport by a ship or aircraft, except when such transport is solely between places in a Contracting State; (g) the term "competent authority" means: (i) in __________:----------; and (ii) in the United States: the Secretary o....
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....e term "special tax regime" means any statute, regulation or administrative practice in a Contracting State with respect to a tax described in Article 2 (Taxes Covered) that meets all of the following conditions: (i) results in one or more of the following: (A) a preferential rate of taxation for interest, royalties, guarantee fees or any combination thereof, as compared to income from sales of goods or services; (B) a permanent reduction in the tax base with respect to interest, royalties, guarantee fees or any combination thereof, without a comparable reduction for income from sales of goods or services, by allowing: (1) an exclusion from gross receipts; (2) a deduction without regard to any co....
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....areholders (with at most one year of deferral), that hold a diversified portfolio of securities, that are subject to investor-protection regulation in the Contracting State and the interests in which are marketed primarily to retail investors; or (D) persons the taxation of which achieves a single level of taxation either in the hands of the person or the person's shareholders (with at most one year of deferral) and that hold predominantly real estate assets; and (v) after consultation with the first-mentioned Contracting State, has been identified by the other Contracting State through diplomatic channels to the first- mentioned Contracting State as satisfying clauses (i) through (iv) of this subparagraph. No sta....
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....her laws of that Contracting State. ***************** NOTES:- 1. For inclusion in an instrument reflecting an agreed interpretation: Except as provided below, the rate of taxation shall be determined based on the income tax principles of the Contracting State that has implemented the regime in question. Therefore, in the case of a regime that provides only for a preferential rate of taxation, the generally expected rate of taxation under the regime will equal such preferential rate. In the case of a regime that provides only for a permanent reduction in the tax base, the rate of taxation will equal the statutory rate of company tax generally applicable in the Contracting State to companies subject to the ....