- 1
- This Convention shall apply to persons who are residents of one or both of the Contracting States.
- 2
- For the purposes of this Convention, income derived by or through an entity or arrangement that is treated as wholly or partly fiscally transparent under the tax law of either Contracting State shall be considered to be income of a resident of a Contracting State but only to the extent that the income is treated, for purposes of taxation by that State, as the income of a resident of that State. For the purpose of this paragraph, the term “fiscally transparent” means situations where, under the law of a Contracting State, income or part thereof of an entity or arrangement is not taxed at the level of the entity or arrangement but at the level of the persons who have interest in that entity or arrangement as if that income or part thereof were directly derived by such persons at the time when that income or part thereof is realised whether or not that income or part thereof is distributed by that entity or arrangement to such persons.
- 3
- This Convention shall not affect the taxation, by a Contracting State, of its residents except with respect to the benefits granted under paragraphs 1 and 2 of Article 9, paragraph 6 of Article 13, and Articles 19, 20, 21, 23, 24, 25 and 29.
