27 September 2020
09 Safar 1442
عربي
Text of the Agreement
The Government of the State of Qatar,
And the Government of the Syrian Arab Republic, hereinafter referred to as the “Contracting States”;
Desiring to conclude an Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect to Taxes on Income, Have agreed as follows:
The provisions of this Agreement shall apply to the persons who are residents of one or both of the Contracting States.
(1) This Agreement shall apply to taxes on income imposed on behalf of a Contracting State or of its local authorities, irrespective of the manner in which they are levied.
(2) Shall be deemed as taxes on income all taxes imposed on total income or on elements of income.
(3) The existing taxes to which this Agreement shall apply are:
(a) In the case of Qatar: the taxes on income; (hereinafter referred to as "State of Qatar tax");
(b) in the case of the Syrian Arab Republic:
i. The income tax on industrial, commercial and non-commercial profits;
ii. The income tax on wages and salaries;
iii. The income tax on non-residents;
iv. The income tax on revenues from movable and immovable capital;
v. Additions imposed as percentages of the aforesaid taxes including additions to taxes imposed by local authorities;
(Hereinafter referred to as "Syrian Arab Republic Tax ")
(4) This Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of this Agreement in addition to, or in place of, the existing taxes.
The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.
(1) For the purposes of this Agreement, unless the context otherwise requires:
(a) "A Contracting State" and "the other Contracting State” mean the “State of Qatar” or the “Syrian Arab Republic ”,as the context requires;
(b) "Qatar” means the State of Qatar, Islands, internal waters, territorial sea including its bed and subsoil, the air space over them, the exclusive economic zone and continental shelf, over which the State of Qatar exercises sovereign rights and jurisdiction in accordance with the provisions of international law and Qatar’s domestic laws and regulations;
(c) "Syria" means the territory of the Syrian Arab Republic, internal waters, territorial sea, the subsoil, the air space over them and the maritime areas over which Syria exercises sovereign rights;
(d) "Person" includes any natural or juristic person and any other body of persons treated as a unit for tax purposes;
(e) "National" means:
i. any individual possessing the nationality of a Contracting State; and
ii. any juristic person (joint stock company or legal enterprise) deriving its status as such from the laws in force in a contracting state.
(f) "Company" means any legal person or independent legal entity that is treated as a juristic person for tax purposes;
(g) "Enterprise of a Contracting State" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
(h) "International traffic" means any transport operation by a ship or aircraft that is operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;
(i) "Competent authority" means:
i. in the case of Qatar: the Minister of Finance or his authorised representative;
ii. in the case of the Syria: the Minister of Finance or his authorised representative.
(2) Upon the application of this Agreement by a Contracting State, any term not defined therein shall have the meaning that it has under the laws of that State to which this Agreement applies. Such meaning shall prevail over the meaning this term has under other branches of the laws of that State.
(1) For the purposes of this Agreement, the term "resident of a Contracting State" means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, registration place or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State.
(2) For the purposes of this Agreement, the term "resident of a Contracting State" shall also include:
a) The government of that Contracting State or a local authority thereof;
b) Any government institution or other entity established in that Contracting State which is fully owned, directly or indirectly by the government of that Contracting State or one of its local authorities; and
c) Any entity established in that Contracting State, where its capital is owned by the government of that Contracting State or a local authority thereof in partnership with the governments of other states or the local authorities thereof.
(3) Subject to the provisions of paragraph (1) of this Article, where a person is a resident of both Contracting States, the status of such person shall be determined as follows:
(a) shall be deemed to be a resident only of the Contracting State in which such person has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
(b) Where the Contracting State in which such person has his centre of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
(c) Where he has a habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national;
(d) Where he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
(4) Subject to the provisions of paragraph (1) of this Article, where a person other than an individual is a resident of both Contracting States, then he shall be deemed to be a resident only of the State in which the registration place is situated.
(1) For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.
(2) The term "permanent establishment" includes in particular:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, an oil or gas well, a quarry or any other place of exploration, extraction or exploitation of natural resources.
(g) a mine, an oil or gas well, a quarry or any other place of exploration, extraction or exploitation of natural resources.
(h) a warehouse or store;
(i) a shop for sales purposes;
(j) A building site, a construction, assembly or installation project or supervisory activities in connection therewith constitute a permanent establishmentonlyifsuchsite,projectoractivitieslastmorethansixmonths in any twelve month period commencing or ending in the tax year concerned.
(j) the furnishing of services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged for such purposes in the other Contracting State, provided that such activities continue for the same project or a connected project for a period or periods aggregating more than six months within any twelve month period.
(3) Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:
(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
(d) the sale of goods or merchandise belonging to the enterprise, that are displayed in the context of a temporary seasonal market or exhibition, after closure of the said market or exhibition;
(e) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;
(f) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
(g) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a)to(f)of this paragraph, provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
(h) Notwithstanding the provisions of paragraphs (1) and (2) of
this Article, where a person-other than an agent of an independent status to whom paragraph (6) of this Article applies - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authoritytoconcludecontractsonbehalfoftheenterprise,thatenterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph (3) of this Article which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
(4) Notwithstanding the preceding provisions of this Article, an insurance company of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other ContractingStateorinsuresriskssituatedthereinthroughaperson,other than an agent of an independent status to whom paragraph (6) of this Article applies.
(5) An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
(6) The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
(1) Income derived from immovable property (including income from agriculture or forestry) may be taxed in the Contracting State in which such immovable property is situated and in accordance with its laws.
(2) For the purposes of this Agreement, the term "immovable property" shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of law respecting landed property apply, usufruct of immovable property and rights to fixed or variable payments as consideration for the working of, or the right to work and explore mineral deposits, sources and other natural wealth. Ships, boats and aircrafts shall be regarded as immovable property.
(3) The provisions of paragraph (1) of this Article shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
(4) The provisions of paragraphs (1) and (3)of this Article shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.
(1) The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.
(2) Subject to the provisions of paragraph (3) of this Article, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditionsanddealingwhollyindependentlywiththeenterpriseofwhichitis a permanent establishment or with any other joint enterprises it deals with.
(3) In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere. Such deductions shall be determined in accordance with the domestic law in that state.
(4) In so far as it has been customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph 2 shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result shall be in accordance with the principles contained in this article.
No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.
(5) For the purpose of the provisions of preceding paragraphs of this Article, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is a good and sufficient reason to the contrary.
(6) Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall notbe affected by the provisions of this Article.
(1) Profits from the operation of ships, aircrafts, railways or road vehicles (terrestrial conveyance vehicles) in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.
(2) If the place of effective management of a shipping enterprise is aboard a ship then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.
(3) The provisions of paragraph (1) of this article shall also apply to profits from the participation in a pool, a joint business or an international operating agency.
(1) Where:
(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State; or
(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State;
And in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.
(2) Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly- profits on which an enterprise of the other ContractingStatehasbeenchargedtotaxinthatotherStateandtheprofits so included are profits which would have accrued to the enterprise of the first- mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other on this matter.
(1) Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State and in accordance with its laws.
(2) The dividends referred to in paragraph (1) of this Article may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State. However, if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed 5% of the gross amount of the dividends
(3) The term “dividends” as used in this Article means income from shares or other rights, not being debt claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.
(4) The provisions of paragraphs 1 and 2 of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated there in, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14 of this Agreement, as the case may be, shall apply.
(5) Where a company which is a resident of a Contracting State derivesprofitsorincomefromtheotherContractingState,thatotherState may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holdinginrespectofwhichthedividendsarepaidiseffectivelyconnected with a permanent establishment situated in that other State, nor subject to the company's undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other State.
(1) Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State and in accordance with its laws.
(2) The interest referred to in the preceding paragraph may also be taxed in the Contracting State in which it arises and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 10% per cent of the gross amount of the interest.
(3) Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if the beneficial owner of the interest is one of the entities referred to in paragraph 2 of Article 4 of this Agreement or if the debt rights belonging to a resident of the other Contracting State are secured, insured, or directly or indirectly financed by a financial institution fully owned by the government of the other Contracting State or local authority affiliated to it.
(4) The term “interest” as used in this Article means income from debt claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.
(5) The provisions of paragraphs (1) and (2) of this article shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base, In this case the provisions of Article 7 or Article 14 of this Agreement, as the case may be, shall apply.
(6) Interest shall be deemed to arise in a Contracting State when the payer of interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base.
(7) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest paid exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.
(1) Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State and in accordance with its laws.
(2) However, such royalties may also be taxed in the Contracting State in
which they arise and according to the laws of that State, provided that the tax so charged shall not exceed 18 per cent of the gross amount of the royalties or whatever is decided by local legislation in the two contracting states whichever is less.
(3) The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films and films or tapes for radio or television broadcasting, any patent, trade mark, design or model, plan, secret formula or production process, or for the use of or right to use any of the industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.
(4) The provisions of paragraphs (1)and(2)of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7or Article 14ofthis Agreement, as the case may be, shall apply.
(5) Royalties shall be deemed to arise in a Contracting State where the payer of such royalties is that State itself, a local authority or a resident of that State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the obligation to pay the royalties was incurred and the royalties are borne by that permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
(6) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, according to the other provisions of this Agreement.
(1) Gains derived from the alienation of immovable property as defined in paragraph (2) of Article 6 of this Agreement, may be taxed only in that State in which such immovable property is situated.
(2) Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State.
(3) Gains from the alienation of property forming part of the business property of an enterprise of a Contracting State, comprising ships or aircrafts being operated in international traffic by that enterprise, or movable property pertaining to the operation of such ships or aircrafts, shall be taxable only in the Contracting State in which such enterprise was registered.
(4) Gains from the alienation of any property other than that referred to in paragraphs (1), (2) and (3) of this Article shall be taxable only in the Contracting State of which the alienator is a resident.
(1) Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. Such income may be taxable in the other Contracting State in the following two cases:
(a) If he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or
(b) If the resident is present in the other State for a period or periods reaching or exceeding in the aggregate 183 days during a twelve months period commencing or ending at the calendar year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.
(2) The term `professional services` includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
(1) Subject to the provisions of Articles 16, 18 and 19of this Agreement, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is exercised in the other Contracting State, such remuneration as is derived therefrom may be taxed in that other State.
(2) Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if all the following terms are met:
(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in any period of twelve months commencing or ending in the calendar year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment or fixed base which the employer has in the other Contracting State.
(3) Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise of a contracting country shall be taxable only in the Contracting State in which the enterprise is registered.
Board Members’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.
(1) Notwithstanding the provisions of Articles 14and 15of this Agreement, income derived by a resident of a Contracting State as an athlete or entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, from personal activities as such exercised in the other Contracting State, may be taxed in that other State.
(2) Where income in respect of personal activities exercised by an entertainer or sportsperson in his capacity as such accrues not to the entertainer or sportsperson but to another person, that income may, notwithstanding the provisions of Articles 7,14 and 15of this Agreement, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.
(3) As an exception of the provisions of paragraphs 1 and 2 of this Article, the income derived by a resident of a Contracting State as an athlete or entertainer from personal activities exercised in the other Contracting State, may be taxed in the first-mentioned State if such activities carried out in the other Contracting State are largely financed from public funds of the first-mentioned State or its local authorities.
(1) Subject to the provisions of paragraph (2) of Article 19 of this Agreement, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State and in accordance with its laws.
(2) Notwithstanding the provisions of paragraph (1) of this Article pensions and other similar payments made under the social security legislation of a Contracting State shall be taxable only in that State.
(3) The provisions of paragraphs 1 and 2 of this Article shall not affect the legal provisions of a Contracting State with respect to exemption of pension funds from tax.
(1) (a) Salaries, wages and similar remuneration, other than a pension, paid by a Contracting State or a local authority thereof to an individual in respect of services rendered to that State or authority shall be taxable only in that State.
(b) However, such Salaries, wages and similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:
(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of rendering the services.
(2)(a) Pensions and other similar remuneration paid by, or out of funds created by, a Contracting State or a local authority thereof to an individual in respect of services rendered to that State shall be taxable only in that State.
(b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that State.
(3) The provisions of Articles 15,16 and18of this Agreement shall apply to compensations and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a local authority thereof.
(4) The provisions of paragraph 2 of this Article shall not affect the legal provisions of a Contracting State with respect to exemption of pension funds from tax.
(1) Where a person residing in a Contracting State is invited to visit the other Contracting State by a university, college, or a higher educational or scientific research institution of the other Contracting State solely for the purpose of education or undertaking research in such institutes for a period not exceeding one year, that person shall not be subject to taxation in the other Contracting State for remuneration in consideration of such activity.
(2) The provisions of paragraph (1) of this article shall not apply to remuneration from research if such research is undertaken for the private benefit of a specific person or persons.
(1) The income of a resident of a Contracting State who is temporarily present in the other Contracting State shall not be taxed in the other Contracting State in connection with his scholarship in any of the following cases, where he is:
a. A student of a university, college or school in the other Contracting State;
b. A trainee who receives business, industrial or technical training; or
c. A beneficiary of a grant or award of a religious, charitable, scientific or educational entity for the purpose of study or research.
(2) The same rule shall apply to any remuneration paid to the person for services rendered in the other Contracting State, provided that such services are connected with his study or training and are necessary for his maintenance
(3) As for a resident of a Contracting State who directly moves to another Contracting State for the purpose of education, training or undertaking research, the remuneration paid to him for that purpose shall not be taxable in the latter case as long as he obtains it from sources outside that State.
(1) Income of a resident of a Contracting State, wherever arising, which is not dealt within the other Articles of this Agreement shall be taxable only in that Contracting State.
(2) The provisions of paragraph (1) of this Article shall not apply to income, other than income from immovable property as defined in paragraph (2) of Article 6 of this Agreement, if the beneficial owner of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs independent personal services in that other State through a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, of this Agreement shall apply.
(3) As an exception of the provisions of paragraphs 1 and 2 of this Article, the income derived by a resident of a Contracting State that arises in the other Contracting State but is not dealt with in the other Articles of this Agreement may be taxed in that other State.
(1) Where a resident of a Contracting State derives items of income which, in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned State shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in that other Contracting State, provided that such deduction shall not exceed that part of the tax, as computed before the deduction is given, which is attributable to taxable income derived from that other Contracting State.
(2) Where income derived by a resident of a Contracting State from the other a Contracting State is exempt from tax in that first-mentioned State, such other State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.
(1) Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State, in the same circumstances, in particular with respect to residence, are or may be subjected.
(2) The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities.
The provisions of this article shall not be construed as obliging a Contracting State to grant the resident nationals of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own nationals.
(3) Except in the case where the provisions of paragraph (1) of Article 9, paragraph(7) of Article 11orparagraph (6) of Article 12ofthis Agreement apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.
(4) Where the capital of enterprises of a Contracting State is wholly or partlyownedorcontrolled,directlyorindirectly,byoneormoreresidentsof the other Contracting State, it shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.
(1) Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Agreement, he may then, irrespective of the remedies provided by the domestic law of those States, present this case to the competent authority of the Contracting State of which he is a resident or, if his case comes under paragraph (1) of Article 24of this Agreement, to that of the Contracting State of which he is a national. The case must be presented within two years from the first notification of the action resulting in taxation not in accordance with the provisions of the Agreement.
(2) The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with this Agreement. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.
(3) The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of this Agreement. They may also consult together for the elimination of double taxation in cases not provided for in this Agreement.
(4) The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs of this Article. When it seems useful in order to reach agreement to have an oral exchange of opinions, such exchange may take place through an ad hoc Commission consisting of representatives of the competent authorities of the Contracting States.
(5) The competent authorities in the two Contracting States may determine the manner of implementation of this Agreement through mutual agreement.
(1) The competent authorities of the Contracting States shall exchange such information as may be necessary for carrying out the provisions of this Agreement or to the enforcement of the domestic laws of the Contracting States concerning the taxes covered by this Agreement, in so far as contracting under them is compatible with this Agreement. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State, and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by this Agreement. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.
(2) In no case shall the provisions of paragraph (1) of this Article be construed so as to impose on a Contracting State the obligation:
(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade production process, or information, the disclosure of which would be contrary to public policy.
Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic or consular missions under the general rules of international law or under the provisions of special agreements.
(1) The Contracting States shall notify each other, through diplomatic channels, of the completion of the legal procedures required for the bringing into force of this Agreement. This Agreement shall enter into force thirty (30) days from the date of receipt of the later of the notifications.
(2) The provisions of this Agreement shall enter into force as follows:
(a) in respect of taxes withheld at source: it applies to sums paid or entered into account on or after the first day of January in the year next following the year in which the Agreement enters into force, pursuant to paragraph (1) of this Article;
(b) in respect of other income taxes: it applies for tax periods commencing on or after the first day of January in the Gregorian calendar year next following the year in which the Agreement enters into force, pursuant to paragraph (1) of this Article
This Agreement shall remain in force for an indefinite period unless terminated by any one of the Contracting States. After the elapse of a period of five years from the date of entry into force of this Agreement either Contracting State may terminate this Agreement, through diplomatic channels, by giving a written notice of termination at least six months before the end of any Gregorian calendar year.
In such event, this agreement shall cease to have effect as follows:
(a) in respect of taxes withheld at source: their provisions shall cease in respect of sums paid or entered into account on or after the first day of January in the year next following the Gregorian calendar year in which a notice of termination is given; and
(b) in respect of other income taxes: their provisions shall cease in respect of income derived during the tax periods commencing on or after the first day of January in the Gregorian calendar year next following the year in which a notice of termination is given.
In witness whereof the below authorised signatories have signed this Agreement in duplicate, one copy per each party, in Doha on 27thShaaban 1424H, corresponding to 23 October 2003 in the Arabic language. Each one being an original and equally authoritative copy.
For the Government of the State of Qatar
YousefHussain Kamal
Minister of Finance
For the Government of the
Syrian Arab Republic
Dr Ghassan Al-Rifaei