The Double Taxation Relief (Taxes on Income) (Italy) Order 1990

1. Introductory Text

2. 1. This Order may be cited as the Double Taxation Relief...

3. 2. It is hereby declared— (a) that the arrangements specified in...

4. Signature

5. 1. SCHEDULE

      1. PART I CONVENTION BETWEEN THE GOVERNMENT OF THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND AND THE GOVERNMENT OF THE ITALIAN REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

         1. The Government of the United Kingdom of Great Britain and...

         2. Desiring to conclude a new Convention for the Avoidance of...

         3. Have agreed as follows:

      2. ARTICLE 1 Personal scope

         1. This Convention shall apply to persons who are residents of...

      3. ARTICLE 2 Taxes covered

         1. 1. The existing taxes to which the Convention shall apply are:...

         2. 2. This Convention shall also apply to any identical or substantially...

      4. ARTICLE 3 General definitions

         1. 1. For the purposes of this Convention, unless the context otherwise...

         2. 2. As regards the application of this Convention by a Contracting...

      5. ARTICLE 4 Fiscal domicile

         1. 1. For the purposes of this Convention, the term “resident of...

         2. 2. Where by reason of the provisions of paragraph (1) of...

         3. 3. Where by reason of the provisions of paragraph (1) of...

      6. ARTICLE 5 Permanent establishment

         1. 1. For the purposes of this Convention, the term “permanent establishment”...

         2. 2. The term “permanent establishment” shall include especially:

         3. 3. The term “permanent establishment” shall not be deemed to include:...

         4. 4. A person acting in a Contracting State on behalf of...

         5. 5. An enterprise of a Contracting State shall not be deemed...

         6. 6. The fact that a company which is a resident of...

      7. ARTICLE 6 Income from immovable property

         1. 1. Income derived by a resident of a Contracting State from...

         2. 2. The term “immovable property” shall have the meaning which it...

         3. 3. The provisions of paragraph (1) of this Article shall apply...

         4. 4. The provisions of paragraphs (1) and (3) of this Article...

      8. ARTICLE 7 Business profits

         1. 1. The profits of an enterprise of a Contracting State shall...

         2. 2. Subject to the provisions of paragraph (3) of this Article,...

         3. 3. In the determination of the profits of a permanent establishment,...

         4. 4. No profits shall be attributed to a permanent establishment by...

         5. 5. Where profits include items of income which are dealt with...

      9. ARTICLE 8 Shipping and air transport

         1. 1. Profits from the operation of ships or aircraft in international...

         2. 2. If the place of effective management of a shipping enterprise...

         3. 3. The provisions of paragraph (1) of this Article shall also...

      10. ARTICLE 9 Associated enterprises

          1. Where (a) an enterprise of a Contracting State participates directly...

      11. ARTICLE 10 Dividends

          1. 1. Dividends paid by a company which is a resident of...

          2. 2. However, such dividends may also be taxed in the Contracting...

          3. 3. As long as an individual resident in the United Kingdom...

          4. 4. (a) A resident of the United Kingdom who receives dividends...

          5. 5. The provisions of neither sub-paragraph (b) nor (c) of paragraph...

          6. 6. The term “dividends” as used in this Article means income...

          7. 7. The provisions of paragraph (1) and of paragraphs (2), (3)...

          8. 8. Where a company which is a resident of a Contracting...

          9. 9. If the beneficial owner of a dividend, being a resident...

      12. ARTICLE 11 Interest

          1. 1. Interest arising in a Contracting State and paid to a...

          2. 2. However, such interest may also be taxed in the Contracting...

          3. 3. Notwithstanding the provisions of paragraph (2) of this Article, the...

          4. 4. Notwithstanding the provisions of paragraph (2) of this Article, the...

          5. 5. The term “interest” as used in this Article means income...

          6. 6. The provisions of paragraphs (1), (2), (3) or (4), as...

          7. 7. Interest shall be deemed to arise in a Contracting State...

          8. 8. Where, by reason of a special relationship between the payer...

          9. 9. The provisions of this Article shall not apply if the...

          10. 10. The reliefs from tax provided for in paragraphs (2), (3)...

      13. ARTICLE 12 Royalties

          1. 1. Royalties arising in a Contracting State and paid to a...

          2. 2. However, such royalties may also be taxed in the Contracting...

          3. 3. The term “royalties” as used in this Article means payments...

          4. 4. The provisions of paragraphs (1) and (2) of this Article...

          5. 5. Royalties shall be deemed to arise in a Contracting State...

          6. 6. Where, by reason of a special relationship between the payer...

      14. ARTICLE 13 Capital gains

          1. 1. Gains derived by a resident of a Contracting State from...

          2. 2. Gains from the alienation of movable property forming part of...

          3. 3. Gains from the alienation of ships or aircraft operated in...

          4. 4. Gains from the alienation of any property other than that...

          5. 5. The provisions of paragraph (4) of this Article shall not...

      15. ARTICLE 14 Independent personal services

          1. 1. Income derived by a resident of a Contracting State in...

          2. 2. The term “professional services” includes especially independent scientific, literary, artistic,...

      16. ARTICLE 15 Dependent personal services

          1. 1. Subject to the provisions of Articles 16, 18, 19, 20...

          2. 2. Notwithstanding the provisions of paragraph (1) of this Article, remuneration...

          3. 3. Notwithstanding the preceding provisions of this Article, remuneration derived in...

      17. ARTICLE 16 Directors' fees

          1. Directors' fees and other similar payments derived by a resident...

      18. ARTICLE 17 Artistes and athletes

          1. 1. Notwithstanding the provisions of Articles 14 and 15 of this...

          2. 2. Where income in respect of personal activities exercised by an...

      19. ARTICLE 18 Pensions

          1. 1. Subject to the provisions of paragraph (2) of Article 19...

          2. 2. The term “annuity” means a stated sum payable periodically at...

      20. ARTICLE 19 Government service

          1. 1. (a) Remuneration, other than a pension, paid by a Contracting...

          2. 2. (a) Any pension paid by, or out of funds created...

          3. 3. The provisions of Articles 15, 16 and 18 of this...

      21. ARTICLE 20 Teachers

          1. 1. An individual who visits one of the Contracting States for...

          2. 2. This Article shall only apply to income from research if...

      22. ARTICLE 21 Students and business apprentices

          1. Payments which a student or business apprentice who is or...

      23. ARTICLE 22 Other income

          1. 1. Items of income of a resident of a Contracting State,...

          2. 2. The provisions of paragraph (1) of this Article shall not...

      24. ARTICLE 23 Miscellaneous rules applicable to certain offshore activities

          1. 1. The provisions of this Article shall apply notwithstanding any other...

          2. 2. In this Article the term “offshore activities” means activities which...

          3. 3. An enterprise of a Contracting State which carries on offshore...

          4. 4. The provisions of paragraph (3) of this Article shall not...

          5. 5. A resident of a Contracting State who carries on offshore...

          6. 6. Salaries, wages and other similar remuneration derived by a resident...

      25. ARTICLE 24 Elimination of double taxation

          1. 1. Double taxation of income shall be avoided in accordance with...

          2. 2. Subject to the provisions of the law of the United...

          3. 3. Where a resident of Italy owns items of income which...

          4. 4. For the purpose of paragraphs (2) and (3) of this...

      26. ARTICLE 25 Non-discrimination

          1. 1. Nationals of a Contracting State shall not be subjected in...

          2. 2. The taxation on a permanent establishment which an enterprise of...

          3. 3. Except where the provisions of Article 9, paragraph (8) of...

          4. 4. Enterprises of a Contracting State, the capital of which is...

          5. 5. The provisions of this Article shall apply to taxes of...

      27. ARTICLE 26 Mutual agreement procedure

          1. 1. Where a resident of a Contracting State considers that the...

          2. 2. The competent authority shall endeavour, if the objection appears to...

          3. 3. The competent authorities of the Contracting States shall endeavour to...

          4. 4. The competent authorities of the Contracting States may communicate with...

      28. ARTICLE 27 Exchange of information

          1. 1. The competent authorities of the Contracting States shall exchange such...

          2. 2. In no case shall the provisions of paragraph (1) of...

      29. ARTICLE 28 Members of diplomatic or permanent missions and consular posts

          1. Nothing in this Convention shall affect any fiscal privileges accorded...

      30. ARTICLE 29 Refunds

          1. 1. Tax withheld at source in a Contracting State shall be...

          2. 2. Applications for refund shall be made within the time limit...

          3. 3. The competent authorities of the Contracting States shall by mutual...

      31. ARTICLE 30 Entry into force

          1. 1. This Convention shall be ratified and the instruments of ratification...

          2. 2. This Convention shall enter into force after the expiration of...

          3. 3. The existing Convention for the avoidance of double taxation and...

      32. ARTICLE 31 Termination

          1. This Convention shall remain in force until terminated by one...

          2. In witness whereof the undersigned, duly authorised thereto by their...

          3. Done in duplicate at Pallanza this 21st day of October...

          4. For the Government of the United Kingdom of Great Britain...

          5. Geoffrey Howe

          6. For the Government of the Italian Republic:

          7. Giulio Andreotti

      33. PART II EXCHANGE OF NOTES

          1. Pallanza

          2. 21st October 1988

          3. Your Excellency,

          4. I have the honour to refer to the Convention between...

          5. If the foregoing proposal is acceptable to the Government of...

          6. Please accept, Your Excellency, the assurance of my highest consideration....

          7. Geoffrey Howe

          8. His Excellency the Minister of Foreign Affairs of the Italian...

          9. Pallanza

          10. 21st October 1988

          11. Your Excellency,

          12. I have the honour to acknowledge receipt of your Excellency’s...

          13. In reply, I have the honour to state that the...

          14. Please accept, Your Excellency, the assurances of my highest consideration....

          15. Giulio Andreotti

          16. His Excellency the Secretary of State for Foreign and Commonwealth...

6. Explanatory Note