DTC agreement between Uruguay and Liechtenstein

7/30/2019 DTC agreement between Uruguay and Liechtenstein

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CONVENTION

between the Principality of Liechtenstein and the Oriental Republic of Uruguay

for the Avoidance of Double Taxaon with respect to Taxes on Income and on Capital

Preamble

The Principality of Liechtenstein and the Oriental Republic of Uruguay, hereinaer referred to

as Contracng States,

whereas the Contracng States recognise that the well-developed economic es between

the Contracng States call for further cooperaon;

whereas the Contracng States wish to develop their relaonship further by cooperang to

their mutual benets in the eld of taxaon; and

whereas the Contracng States wish to conclude a Convenon for the avoidance of double

taxaon with respect to taxes on income and on capital

have agreed as follows:

Arcle 1Persons Covered

This Convenon shall apply to persons who are residents of one or both of the Contracng

States.

Arcle 2

Taxes Covered

(1) This Convenon shall apply to taxes on income and on capital imposed on behalf of aContracng State or of its polical subdivisions or local authories, irrespecve of the

manner in which they are levied.

(2) There shall be regarded as taxes on income and on capital all taxes imposed on total

income, on total capital, or on elements of income or of capital, including taxes on gains from

the alienaon of movable or immovable property, taxes on the total amounts of wages or

salaries paid by enterprises, as well as taxes on capital appreciaon.

(3) The exisng taxes to which this Convenon shall apply are in parcular:

a) in the Principality of Liechtenstein:aa) the personal income tax (Erwerbssteuer);

bb) the corporate income tax (Ertragssteuer);


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cc) the corporaon taxes (Gesellschassteuern);

dd) the real estate capital gains tax (Grundstcksgewinnsteuer);

ee) the wealth tax (Vermgenssteuer); and

) the coupon tax (Couponsteuer);

(hereinaer referred to as Liechtenstein tax);

b) in Uruguay :

aa) the tax on business income (Impuesto a las Rentas de las Acvidades Econmicas

-IRAE- );

bb) the personal income tax (Impuesto a las Rentas de las Personas Fsicas -IRPF-);

cc) the non-residents income tax (Impuesto a las Rentas de los No Residentes

-IRNR-) ;

dd) the tax for social security assistance (Impuesto de Asistencia a la Seguridad Social

-IASS-); and

ee) the capital tax (Impuesto al Patrimonio -IP-);(hereinaer referred to as Uruguayan tax).

(4) This Convenon shall apply also to any idencal or substanally similar taxes that are

imposed aer the date of signature of this Convenon in addion to, or in place of, the

exisng taxes. The competent authories of the Contracng States shall nofy each other of

any signicant changes that have been made in their tax laws.

Arcle 3

General Denions

(1) For the purposes of this Convenon, unless the context otherwise requires:

a) the terms a Contracng State and the other Contracng State mean the

Principality of Liechtenstein or the Oriental Republic of Uruguay as the context

requires;

b) the term Liechtenstein means the Principality of Liechtenstein, and, when used in a

geographical sense, the area in which the tax laws of the Principality of Liechtenstein

apply;

c) the term Uruguay means the Oriental Republic of Uruguay, and, when used in a

geographical sense, the area in which the tax laws of Uruguay apply;

d) the term person includes individuals, companies, trusts, partnerships, investment

funds or schemes, pension schemes, dormant inheritances and any other body of

persons;

e) the term company means any body corporate, as well as enes and special asset

endowments that are treated as a body corporate for tax purposes;

f) the term enterprise applies to the carrying on of any business;

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g) the terms enterprise of a Contracng State and enterprise of the other Contracng

State mean respecvely an enterprise carried on by a resident of a Contracng State

and an enterprise carried on by a resident of the other Contracng State;

h) the term internaonal trac means any transport by a ship or aircra operated by

an enterprise that has its place of eecve management in a Contracng State,

except when the ship or aircra is operated solely between places in the other

Contracng State;

i) the term competent authority means:

aa) in Liechtenstein: the Government of the Principality Liechtenstein or its

authorised representave;

bb) in Uruguay, the Minister of Economy and Finance or his authorized representave

j) the term naonal, in relaon to a Contracng State, means:

aa) any individual possessing the naonality or cizenship of that Contracng State;and

bb) any person other than an individual deriving its status as such from the laws in

force in that Contracng State;

k) the term business includes the performance of professional services and of other

acvies of an independent character.

(2) As regards the applicaon of this Convenon at any me by a Contracng State, any term

not dened therein shall, unless the context otherwise requires, have the meaning that it has

at that me under the law of that State for the purposes of the taxes to which thisConvenon applies, any meaning under the applicable tax laws of that State prevailing over a

meaning given to the term under other laws of that State.

Arcle 4

Resident

(1) For the purposes of this Convenon, the term resident of a Contracng State means

any person who, under the laws of that State, is liable to tax therein by reason of his

domicile, residence, place of incorporaon or establishment, place of management or anyother criterion of a similar nature, and also includes that State and any polical subdivision

or local authority thereof. This term, however, does not include any person who is liable to

tax in that State in respect only of income from sources in that State or capital situated

therein.

(2) Where by reason of the provisions of paragraph 1 an individual is a resident of both

Contracng States, then his status shall be determined as follows:

a) he shall be deemed to be a resident only of the State in which he 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 andeconomic relaons are closer (centre of vital interests);

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b) if the State in which he has his centre of vital interests cannot be determined, or if he

has not 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) if he has an habitual abode in both States or in neither of them, he shall be deemed

to be a resident only of the State of which he is a naonal;

d) if he is a naonal of both States or of neither of them, the competent authories of

the Contracng States shall sele the queson by mutual agreement.

(3) Where by reason of the provisions of paragraph 1 a person other than an individual is a

resident of both Contracng States, then it shall be deemed to be a resident only of the State

in which its place of eecve management is situated.

Arcle 5

Permanent Establishment

(1) For the purposes of this Convenon, the term permanent establishment means a xed

place of business through which the business of an enterprise is wholly or partly carried on.

(2) The term permanent establishment includes especially:

a) a place of management;

b) a branch;

c) an oce;

d) a factory;

e) a workshop; and

f) a mine, an oil or gas well, a quarry or any other place of extracon of natural

resources.

(3) The term permanent establishment also encompasses:

a) a building site, a construcon, assembly or installaon project or supervisory

acvies in connecon herewith, but only if such site, project or acvies last more

than six months;

b) the furnishing of services, including consultancy services, by an enterprise through

employees or other personnel engaged by the enterprise for such purpose, but only if

acvies of that nature connue (for the same or a connected project) within a

Contracng State for a period or periods aggregang more than nine months within

any twelve-month period.

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(4) Notwithstanding the preceding provisions of this Arcle, the term permanent

establishment shall be deemed not to include:

a) the use of facilies 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 maintenance of a xed place of business solely for the purpose of purchasing

goods or merchandise or of collecng informaon, for the enterprise;

e) the maintenance of a xed place of business solely for the purpose of carrying on, for

the enterprise, any other acvity of a preparatory or auxiliary character;

f) the maintenance of a xed place of business solely for any combinaon of acvies

menoned in subparagraphs a) to e), provided that the overall acvity of the xed

place of business resulng from this combinaon is of a preparatory or auxiliary

character.

(5) An enterprise shall not be deemed to have a permanent establishment in a Contracng

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 personsare acng in the ordinary course of their business.

(6) The fact that a company which is a resident of a Contracng State controls or is controlled

by a company which is a resident of the other Contracng State, or which carries on business

in that other State (whether through a permanent establishment or otherwise), shall not of

itself constute either company a permanent establishment of the other.

Arcle 6

Income from Immovable Property

(1) Income derived by a resident of a Contracng State from immovable property (including

income from agriculture or forestry) situated in the other Contracng State shall be taxable

only in that other State.

(2) The term immovable property shall have the meaning which it has under the law of the

Contracng State in which the property in queson 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 general law respecng landed

property apply, usufruct of immovable property and rights to variable or xed payments asconsideraon for the working of, or the right to work, mineral deposits, sources and other

natural resources; ships, boats and aircra shall not be regarded as immovable property.

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(3) The provisions of paragraph 1 shall apply to income derived from the direct use, leng,

or use in any other form of immovable property.

(4) The provisions of paragraphs 1 and 3 shall also apply to the income from immovable

property of an enterprise.

Arcle 7

Business Prots

(1) The prots of an enterprise of a Contracng State shall be taxable only in that State

unless the enterprise carries on business in the other Contracng State through a permanent

establishment situated therein. If the enterprise carries on business as aforesaid, the prots

of the enterprise may be taxed in the other State but only so much of them as is aributable

to that permanent establishment.

(2) Subject to the provisions of paragraphs 3 and 8, where an enterprise of a Contracng

State carries on business in the other Contracng State through a permanent establishment

situated therein, there shall in each Contracng State be aributed to that permanent

establishment the prots which it might be expected to make if it were a disnct and

separate enterprise engaged in the same or similar acvies under the same or similar

condions and dealing wholly independently with the enterprise of which it is a permanent

establishment.

(3) In determining the prots of a permanent establishment, there shall be allowed asdeducons expenses which are incurred for the purposes of the permanent establishment,

including execuve and general administrave expenses so incurred, whether in the State in

which the permanent establishment is situated or elsewhere.

(4) Insofar as it has been customary in a Contracng State to determine the prots to be

aributed to a permanent establishment on the basis of an apporonment of the total

prots of the enterprise to its various parts, nothing in paragraph 2 shall preclude that

Contracng State from determining the prots to be taxed by such an apporonment as may

be customary; the method of apporonment adopted shall, however, be such that the result

shall be in accordance with the principles contained in this Arcle.

(5) No prots shall be aributed to a permanent establishment by reason of the mere

purchase by that permanent establishment of goods or merchandise for the enterprise.

(6) For the purposes of the preceding paragraphs, the prots to be aributed to the

permanent establishment shall be determined by the same method year by year unless there

is good and sucient reason to the contrary.

(7) Where prots include items of income which are dealt with separately in other Arcles of

this Convenon, then the provisions of those Arcles shall not be aected by the provisionsof this Arcle.

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(8) Where, in accordance with paragraph 2, a Contracng Party adjusts the prots that are

aributable to a permanent establishment of an enterprise of one of the Contracng Pares

and taxes accordingly prots of the enterprise that have been charged to tax in the other

Party, the other Party shall, to the extent necessary to eliminate double taxaon on these

prots, make an appropriate adjustment to the amount of the tax charged on those prots.

In determining such adjustment, the competent authories of the Contracng Pares shall if

necessary consult each other.

Arcle 8

Shipping, Inland Waterways Transport and Air Transport

(1) Prots from the operaon of ships or aircra in internaonal trac shall be taxable only

in the Contracng State in which the place of eecve management of the enterprise is

situated.

(2) Prots from the operaon of boats engaged in inland waterways transport shall be

taxable only in the Contracng State in which the place of eecve management of the

enterprise is situated.

(3) If the place of eecve management of a shipping enterprise or of an inland waterways

transport enterprise is aboard a ship or boat, then it shall be deemed to be situated in the

Contracng State in which the home harbour of the ship or boat is situated, or, if there is no

such home harbour, in the Contracng State of which the operator of the ship or boat is a

resident.

(4) The provisions of paragraph 1 shall also apply to prots from the parcipaon in a pool, a

joint business or an internaonal operang agency.

Arcle 9

Associated Enterprises

(1) Where

a) an enterprise of a Contracng State parcipates directly or indirectly in the

management, control or capital of an enterprise of the other Contracng State; or

b) the same persons parcipate directly or indirectly in the management, control or

capital of an enterprise of a Contracng State and an enterprise of the other

Contracng State;

and in either case condions are made or imposed between the two enterprises in their

commercial or nancial relaons which dier from those which would be made between

independent enterprises, then any prots which would, but for those condions, have

accrued to one of the enterprises, but, by reason of those condions, have not so accrued,

may be included in the prots of that enterprise and taxed accordingly.

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(2) Where a Contracng State includes in the prots of an enterprise of that State and taxes

accordingly prots on which an enterprise of the other Contracng State has been charged

to tax in that other State and the prots so included are prots which would have accrued to

the enterprise of the rst-menoned State if the condions 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 prots. In determining such adjustment, due regard shall be had to the

other provisions of this Convenon and the competent authories of the Contracng States

shall if necessary consult each other.

Arcle 10

Dividends

(1) Dividends paid by a company which is a resident of a Contracng State to a resident of

the other Contracng State may be taxed in that other State.

(2) However, such dividends may also be taxed in the Contracng State of which the

company paying the dividends is a resident and according to the laws of that State, but if the

benecial owner of the dividends is a resident of the other Contracng State, the tax so

charged shall not exceed:

a) 5 per cent of the gross amount of the dividends if the benecial owner is a person

other than an individual which holds directly at least 10 per cent of the capital of the

company paying the dividends;

b) 10 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not aect the taxaon of the company in respect of the prots out of

which the dividends are paid.

(3) The term "dividends" as used in this Arcle means income from shares, "jouissance"

shares or "jouissance" rights, mining shares, founders' shares or other rights, not being debt-

claims, parcipang in prots, as well as income from other corporate rights which is

subjected to the same taxaon treatment as income from shares by the laws of the State of

which the company making the distribuon is a resident.

(4) The provisions of paragraphs 1 and 2 shall not apply if the benecial owner of the

dividends, being a resident of a Contracng State, carries on business in the other

Contracng State of which the company paying the dividends is a resident, through a

permanent establishment situated therein, and the holding in respect of which the dividends

are paid is eecvely connected with such permanent establishment. In such case the

provisions of Arcle 7 shall apply.

(5) Where a company which is a resident of a Contracng State derives prots or income

from the other Contracng State, that other State may not impose any tax on the dividends

paid by the company, except insofar as such dividends are paid to a resident of that otherState or insofar as the holding in respect of which the dividends are paid is eecvely

connected with a permanent establishment situated in that other State, nor subject the

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company's undistributed prots to a tax on the company's undistributed prots, even if the

dividends paid or the undistributed prots consist wholly or partly of prots or income

arising in such other State.

Arcle 11

Interest

(1) Interest arising in a Contracng State and paid to a resident of the other Contracng State

may be taxed in that other State.

(2) However, such interest may also be taxed in the Contracng State in which it arises and

according to the laws of that State, but if the benecial owner of the interest is a resident of

the other Contracng 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 Contracng State andpaid to a resident of the other Contracng State who is the benecial owner thereof shall be

taxable only in that other State to the extent that such interest is paid:

a) on a loan granted by the Central Bank or any other ocial enty;

b) in connecon with the sale on credit of any industrial, commercial or scienc

equipment; or

c) on a loan granted by a bank for at least three years for nancing investment projects.

(4) The term interest as used in this Arcle means income from debt-claims of every kind,whether or not secured by mortgage and whether or not carrying a right to parcipate in the

debtor's prots, and in parcular, income from Government securies and income from

bonds or debentures, including premiums and prizes aaching to such securies, bonds or

debentures. However, the term interest shall not include income referred to in Arcle 10.

Penalty charges for late payment shall not be regarded as interest for the purpose of this

Arcle.

(5) The provisions of paragraphs 1, 2 and 3 shall not apply if the benecial owner of the

interest, being a resident of a Contracng State, carries on business in the other Contracng

State in which the interest arises, through a permanent establishment situated therein, andthe debt-claim in respect of which the interest is paid is eecvely connected with such

permanent establishment . In such case the provisions of Arcle 7 shall apply.

(6) Interest shall be deemed to arise in a Contracng State when the payer is a resident of

that State. Where, however, the person paying the interest, whether he is a resident of a

Contracng State or not, has in a Contracng State a permanent establishment in connecon

with which the indebtedness on which the interest is paid was incurred, and such interest is

borne by such permanent establishment, then such interest shall be deemed to arise in the

State in which the permanent establishment is situated.

(7) Where, by reason of a special relaonship between the payer and the benecial owner or

between both of them and some other person, the amount of the interest, having regard to

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the debt-claim for which it is paid, exceeds the amount which would have been agreed upon

by the payer and the benecial owner in the absence of such relaonship, the provisions of

this Arcle shall apply only to the last-menoned amount. In such case, the excess part of

the payments shall remain taxable according to the laws of each Contracng State, due

regard being had to the other provisions of this Convenon.

Arcle 12

Royales

(1) Royales arising in a Contracng State and paid to a resident of the other Contracng

State may be taxed in that other State.

(2) However, such royales may also be taxed in the Contracng State in which they arise and

according to the laws of that State, but if the benecial owner of the royales is a resident of

the other Contracng State, the tax so charged shall not exceed 10 per cent of the gross

amount of the royales.

(3) The term royales as used in this Arcle means payments of any kind received as a

consideraon for the use of, or the right to use, any copyright of literary, arsc or scienc

work including cinematograph lms and lms or tapes for television or radio broadcasng,

any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or

the right to use, industrial, commercial or scienc equipment, or informaon concerning

industrial, commercial or scienc experience.

(4) The provisions of paragraphs 1 and 2 shall not apply if the benecial owner of the

royales, being a resident of a Contracng State, carries on business in the other ContracngState in which the royales arise through a permanent establishment situated therein, and

the right or property in respect of which the royales are paid is eecvely connected with

such permanent establishment. In such case the provisions of Arcle 7 shall apply.

(5) Royales shall be deemed to arise in a Contracng State when the payer is a resident of

that State. Where, however, the person paying the royales, whether a resident of a

Contracng State or not, has in a Contracng State a permanent establishment in connecon

with which the obligaon to pay the royales was incurred, and such royales are borne by

such permanent establishment, then such royales shall be deemed to arise in the State in

which the permanent establishment is situated.

(6) Where, by reason of a special relaonship between the payer and the benecial owner or

between both of them and some other person, the amount of the royales, having regard to

the use, right or informaon for which they are paid, exceeds the amount which would have

been agreed upon by the payer and the benecial owner in the absence of such relaonship,

the provisions of this Arcle shall apply only to the last-menoned amount. In such case, the

excess part of the payments shall remain taxable according to the laws of each Contracng

State, due regard being had to the other provisions of this Convenon.

Arcle 13

Capital Gains

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(1) Gains derived by a resident of a Contracng State from the alienaon of immovable

property referred to in Arcle 6 and situated in the other Contracng State shall be taxable in

that other State.

(2) Gains from the alienaon of movable property forming part of the business property of a

permanent establishment which an enterprise of a Contracng State has in the other

Contracng State, including such gains from the alienaon of such a permanent

establishment (alone or with the whole enterprise), may be taxed in that other State.

(3) Gains from the alienaon of ships or aircra operated in internaonal trac, boats

engaged in inland waterways transport or movable property pertaining to the operaon of

such ships, aircra or boats, shall be taxable only in the Contracng State in which the place

of eecve management of the enterprise is situated.

(4) Gains derived by a resident of a Contracng State from the alienaon of shares derivingmore than 50 per cent of their value directly or indirectly from immovable property situated

in the other Contracng State may be taxed in that other State.

(5) Gains from the alienaon of any property, other than that referred to in paragraphs 1, 2,

3 and 4, shall be taxable only in the Contracng State of which the alienator is a resident.

Arcle 14

Income from Employment

(1) Subject to the provisions of Arcles 15, 17 and 18, salaries, wages and other similarremuneraon derived by a resident of a Contracng State in respect of an employment shall

be taxable only in that State unless the employment is exercised in the other Contracng

State. If the employment is so exercised, such remuneraon as is derived therefrom may be

taxed in that other State.

(2) Notwithstanding the provisions of paragraph 1, remuneraon derived by a resident of a

Contracng State in respect of an employment exercised in the other Contracng State shall

be taxable only in the rst-menoned State if:

a) the recipient is present in the other State for a period or periods not exceeding in the

aggregate 183 days in any twelve month period commencing or ending in the scalyear concerned; and

b) the remuneraon is paid by, or on behalf of, an employer who is not a resident of the

other State; and

c) the remuneraon is not borne by a permanent establishment which the employer has

in the other State.

(3) Notwithstanding the preceding provisions of this Arcle, remuneraon derived in respect

of an employment exercised aboard a ship or aircra operated in internaonal trac, oraboard a boat engaged in inland waterways transport, may be taxed in the Contracng State

in which the place of eecve management of the enterprise is situated.

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Arcle 15

Directors Fees

Directors fees and other similar payments derived by a resident of a Contracng State in his

capacity as a member of the board of directors of a company which is a resident of the other

Contracng State may be taxed in that other State.

Arcle 16

Arsts and Sportsmen

(1) Notwithstanding the provisions of Arcles 7 and 14, income derived by a resident of a

Contracng State as an entertainer, such as a theatre, moon picture, radio or television

arst, or a musician, or as a sportsman, from his personal acvies as such exercised in theother Contracng State, may be taxed in that other State.

(2) Where income in respect of personal acvies exercised by an entertainer or a sportsman

in his capacity as such accrues not to the entertainer or sportsman himself but to another

person, that income may, notwithstanding the provisions of Arcles 7 and 14, be taxed in the

Contracng State in which the acvies of the entertainer or sportsman are exercised.

Arcle 17

Pensions

(1) Subject to the provisions of paragraph 2 of Arcle 18, pensions and other similar

remuneraon (including lump sum payment) paid to a resident of a Contracng State in

consideraon of past employment may be taxed in that State.

(2) Such pensions and other similar remuneraon (including lump sum payment) may also be

taxed in the Contracng State in which they arise and according to the laws of that State.

However, the tax so charged shall not exceed 10 per cent of the gross amount of the

payment.

(3) Pensions and other similar remuneraon (including lump sum payment) shall be deemed

to arise in a Contracng State to the extent that these contribuons, provisions or the

pensions or other similar remuneraon have given rise in that State to tax deducon,

reducon of tax or any other tax relief under the ordinary rules of its tax laws.

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Arcle 18

Government Service

(1)

a) Salaries, wages and other similar remuneraon paid by a Contracng State, a polical

subdivision or a local authority thereof or some other legal enty under public law of

that State to an individual in respect of services rendered to that State, subdivision or

authority or other legal enty under public law of that State shall be taxable only in

that State.

b) However, such salaries, wages and other similar remuneraon shall be taxable only in

the other Contracng State if the services are rendered in that State and the

individual is a resident of that State who:

aa) is a naonal of that State; or

bb) did not become a resident of that State solely for the purpose of rendering the

services.

(2)

a) Notwithstanding the provisions of paragraph 1, pensions and other similar

remuneraon paid by, or out of funds created by, a Contracng State or a polical

subdivision or a local authority thereof or some other legal enty under public law of

that State to an individual in respect of services rendered to that State, subdivision or

authority or other legal enty under public law of that State shall be taxable only in

that State.

b) However, such pensions and other similar remuneraon shall be taxable only in theother Contracng State if the individual is a resident of, and a naonal of, that State.

(3) The provisions of Arcles 14, 15, 16, and 17 shall apply to salaries, wages, pensions, and

other similar remuneraon in respect of services rendered in connecon with a business

carried on by a Contracng State, a polical subdivision or a local authority thereof or some

other legal enty under public law of that State.

Arcle 19

Vising Professors and TeachersAn individual who visits a Contracng State at the invitaon of that State or of a university,

college, school, museum or other cultural instuon of that State or under an ocial

programme of cultural exchange for a period not exceeding three years solely for the

purpose of teaching, giving lectures or carrying out research at such instuon and who is,

or was immediately before that visit, a resident of the other Contracng State shall be

exempt from tax in the rst-menoned State on his remuneraon for such acvity.

Arcle 20

StudentsPayments which a student or business apprence who is or was immediately before vising a

Contracng State a resident of the other Contracng State and who is present in the rst-

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menoned State solely for the purpose of his educaon or training receives for the purpose

of his maintenance, educaon or training shall not be taxed in that State, provided that such

payments arise from sources outside that State.

Arcle 21

Other Income

(1) Items of income of a resident of a Contracng State, wherever arising, not dealt with in

the foregoing Arcles of this Convenon shall be taxable only in that State.

(2) The provisions of paragraph 1 shall not apply to income, other than income from

immovable property as dened in paragraph 2 of Arcle 6, if the recipient of such income,

being a resident of a Contracng State, carries on business in the other Contracng State

through a permanent establishment situated therein and the right or property in respect of

which the income is paid is eecvely connected with such permanent establishment. Insuch case the provisions of Arcle 7 shall apply.

Arcle 22

Capital

(1) Capital represented by immovable property referred to in Arcle 6, owned by a resident

of a Contracng State and situated in the other Contracng State, shall be taxable only in

that other State.

(2) Capital represented by movable property forming part of the business property of a

permanent establishment which an enterprise of a Contracng State has in the other

Contracng State may be taxed in that other State.

(3) Capital represented by ships and aircra operated in internaonal trac and by boats

engaged in inland waterways transport, and by movable property pertaining to the operaon

of such ships, aircra and boats, shall be taxable only in the Contracng State in which the

place of eecve management of the enterprise is situated.

(4) All other elements of capital of a resident of a Contracng State shall be taxable only inthat State.

Arcle 23

Eliminaon of Double Taxaon

(1) Subject to the provisions of the Law of Liechtenstein regarding the eliminaon of double

taxaon which shall not aect the general principle hereof, double taxaon shall be

eliminated as follows:

a) Where a resident of Liechtenstein derives income or owns capital which, inaccordance with the provisions of this Convenon, may be taxed in Uruguay,

Liechtenstein shall, subject to the provisions of subparagraphs b and c, exempt such

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income or capital from tax, but may nevertheless, in calculang the amount of tax on

the remaining income or capital of such resident, take into account the exempted

income or capital.

b) Where a resident of Liechtenstein derives income which, in accordance with

paragraph 2 of Arcle 10, paragraph 2 of Arcle 11, paragraph 2 of Arcle 12, Arcle

14, Arcle 16 and paragraph 2 of Arcle 17 of this Convenon, may be taxed in

Uruguay, Liechtenstein shall credit against Liechtenstein tax on this income the tax

paid in accordance with the law of Uruguay and with the provisions of this

Convenon. The amount of tax to be credit must not, however, exceed the

Liechtenstein tax due on the income derived from Uruguay.

c) Notwithstanding subparagraph b, income from dividends within the meaning of

paragraph 2 subparagraph a and b of Arcle 10 paid by a company that is a resident

of Uruguay to a company that is a resident of Liechtenstein and that are not

deducble in determining the prots of the payor, shall not be taxed in Liechtenstein.

(2) Subject to the provisions of the Law of Uruguay regarding the eliminaon of double

taxaon which shall not aect the general principle hereof, double taxaon shall be

eliminated as follows:

a) Residents in Uruguay, deriving income which has, in accordance with law of

Liechtenstein and under the provisions of this Convenon, been subject to taxaon in

Liechtenstein, may credit the tax so paid against any Uruguayan tax payable in respect

of the same income, subject to the applicable provisions of the law of Uruguay. The

same shall also apply in respect of capital which has, in accordance with law of

Liechtenstein and under the provisions of this Convenon, been subject to taxaon inLiechtenstein; the capital tax so paid may be credited against any Uruguayan tax

payable in respect of the same capital, subject to the applicable provisions of the law

of Uruguay. Such deducon shall not, however, exceed that part of the Uruguayan tax

on income or capital, as computed before the deducon is given.

b) Where, in accordance with any provision of the Convenon, income derived or capital

owned by a resident of Uruguay is exempt from tax in Uruguay, Uruguay may

nevertheless, in calculang the amount of tax on the remaining income or capital of

such resident, take into account the exempted income or capital.

Arcle 24

Non-Discriminaon

(1) Naonals of a Contracng State shall not be subjected in the other Contracng State to

any taxaon or any requirement connected therewith, which is other or more burdensome

than the taxaon and connected requirements to which naonals of that other State in the

same circumstances, in parcular with respect to residence, are or may be subjected. This

provision shall, notwithstanding the provisions of Arcle 1, also apply to persons who are not

residents of one or both of the Contracng States.

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(2) Stateless persons who are residents of a Contracng State shall not be subjected in either

Contracng State to any taxaon or any requirement connected therewith, which is other or

more burdensome than the taxaon and connected requirements to which naonals of the

State concerned in the same circumstances, in parcular with respect to residence, are or

may be subjected.

(3)

a) The taxaon on a permanent establishment which an enterprise of a Contracng

State has in the other Contracng State shall not be less favourably levied in that

other State than the taxaon levied on enterprises of that other State carrying on the

same acvies. This provision shall not be construed as obliging a Contracng State

to grant to residents of the other Contracng State any personal allowances, reliefs

and reducons for taxaon purposes on account of civil status or family

responsibilies which it grants to its own residents.

b) Where a permanent establishment situated in a State receives dividends, interest orroyales arising in the other State corresponding to property or rights eecvely

connected with that permanent establishment, such income shall be taxable in the

other State in accordance with the provisions of paragraph 2 of Arcle 10, paragraph

2 of Arcle 11 and paragraph 2 of Arcle 12. The rst-menoned State shall eliminate

double taxaon according to the terms set forth in paragraphs 1 and 2 of Arcle 23.

This provision shall apply irrespecve of the locaon of the head oce of the

enterprise on which the permanent establishment depends.

(4) Except where the provisions of paragraph 1 of Arcle 9, paragraph 7 of Arcle 11, or

paragraph 6 of Arcle 12, apply, interest, royales and other disbursements paid by anenterprise of a Contracng State to a resident of the other Contracng State shall, for the

purpose of determining the taxable prots of such enterprise, be deducble under the same

condions as if they had been paid to a resident of the rst-menoned State. Similarly, any

debts of an enterprise of a Contracng State to a resident of the other Contracng State

shall, for the purpose of determining the taxable capital of such enterprise, be deducble

under the same condions as if they had been contracted to a resident of the rst-

menoned State.

(5) Enterprises of a Contracng State, the capital of which is wholly or partly owned or

controlled, directly or indirectly, by one or more residents of the other Contracng State,shall not be subjected in the rst-menoned State to any taxaon or any requirement

connected therewith which is other or more burdensome than the taxaon and connected

requirements to which other similar enterprises of the rst-menoned State are or may be

subjected.

(6) The provisions of this Arcle shall, notwithstanding the provisions of Arcle 2, apply to

taxes of every kind and descripon.

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Arcle 25

Mutual Agreement Procedure

(1) Where a person considers that the acons of one or both of the Contracng States result

or will result for him in taxaon not in accordance with the provisions of this Convenon, he

may, irrespecve of the remedies provided by the domesc law of those States, present his

case to the competent authority of the Contracng State of which he is a resident or, if his

case comes under paragraph 1 of Arcle 24, to that of the Contracng State of which he is a

naonal. The case must be presented within three years from the rst nocaon of the

acon resulng in taxaon not in accordance with the provisions of this Convenon.

(2) The competent authority shall endeavour, if the objecon appears to it to be jused and

if it is not itself able to arrive at a sasfactory soluon, to resolve the case by mutual

agreement with the competent authority of the other Contracng State, with a view to the

avoidance of taxaon which is not in accordance with this Convenon. Any agreementreached shall be implemented notwithstanding any me limits in the domesc law of the

Contracng States.

(3) The competent authories of the Contracng States shall endeavour to resolve by mutual

agreement any dicules or doubts arising as to the interpretaon or applicaon of this

Convenon. They may also consult together for the eliminaon of double taxaon in cases

not provided for in this Convenon. To that regard, it is not necessary to present a case

according to paragraph 1.

(4) The competent authories of the Contracng States may communicate with each otherdirectly, including through a joint commission consisng of themselves or their

representaves, for the purpose of reaching an agreement in the sense of the preceding

paragraphs.

(5) Where,

a) under paragraph 1, a person has presented a case to the competent authority of a

Contracng State on the basis that the acons of one or both of the Contracng

States have resulted for that person in taxaon not in accordance with the provisions

of this Convenon; and

b) the competent authories are unable to reach an agreement to resolve that case

pursuant to paragraph 2 within two years from the presentaon of the case to the

competent authority of the other Contracng State;

any unresolved issues arising from the case shall be submied to arbitraon if the person so

requests. These unresolved issues shall not, however, be submied to arbitraon if a

decision on these issues has already been rendered by a court or administrave tribunal of

either State. Unless a person directly aected by the case does not accept the mutual

agreement that implements the arbitraon decision, that decision shall be binding on both

Contracng States and shall be implemented notwithstanding any me limits in the domesc

laws of these States. The competent authories of the Contracng States shall by mutualagreement sele the mode of applicaon of this paragraph.

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Arcle 26

Exchange of Informaon

(1) The competent authories of the Contracng States shall exchange such informaon as is

foreseeably relevant for carrying out the provisions of this Convenon or to the

administraon or enforcement of the domesc laws concerning taxes of every kind and

descripon imposed on behalf of the Contracng States, or of their polical subdivisions or

local authories, insofar as the taxaon thereunder is not contrary to this Convenon. The

exchange of informaon is not restricted by Arcles 1 and 2.

(2) Any informaon received under paragraph 1 by a Contracng State shall be treated as

secret in the same manner as informaon obtained under the domesc laws of that State

and shall be disclosed only to persons or authories (including courts and administrave

bodies) concerned with the assessment or collecon of, the enforcement or prosecuon in

respect of, the determinaon of appeals in relaon to the taxes referred to in paragraph 1, orthe oversight of the above. Such persons or authories shall use the informaon only for

such purposes. They may disclose the informaon in public court proceedings or in judicial

decisions.

(3) In no case shall the provisions of paragraphs 1 and 2 be construed so as to impose on a

Contracng State the obligaon:

a) to carry out administrave measures at variance with the laws and administrave

pracce of that or of the other Contracng State;

b) to supply informaon which is not obtainable under the laws or in the normal courseof the administraon of that or of the other Contracng State;

c) to supply informaon which would disclose any trade, business, industrial,

commercial or professional secret or trade process, or informaon the disclosure of

which would be contrary to public policy (ordre public).

(4) If informaon is requested by a Contracng State in accordance with this Arcle, the

other Contracng State shall use its informaon gathering measures to obtain the requested

informaon, even though that other State may not need such informaon for its own tax

purposes. The obligaon contained in the preceding sentence is subject to the limitaons ofparagraph 3 but in no case shall such limitaons be construed to permit a Contracng State

to decline to supply informaon solely because it has no domesc interest in such

informaon.

(5) In no case shall the provisions of paragraph 3 be construed to permit a Contracng State

to decline to supply informaon solely because the informaon is held by a bank, other

nancial instuon, nominee or person acng in an agency or a duciary capacity or because

it relates to ownership interests in a person.

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Arcle 27

Members of Diplomac Missions and Consular Posts

Nothing in this Convenon shall aect the scal privileges of members of diplomac missions

or consular posts under the general rules of internaonal law or under the provisions of

special agreements.

Arcle 28

Protocol

The aached Protocol shall be an integral part of this Convenon.

Arcle 29Entry into Force

(1) The Contracng States shall nofy each other in wring, through diplomac channels,

that the procedures required by its law for the entry into force of this Convenon have been

sased. This Convenon shall enter into force on the date of receipt of the last nocaon.

(2) This Convenon shall have eect:

a) in respect of taxes withheld at source, to income derived on or aer 1 January of the

calendar year next following the year in which this Convenon enters into force;

b) in respect of other taxes on income and taxes on capital, to taxes chargeable for any

taxable year beginning on or aer 1 January of the calendar year next following the

year in which this Convenon enters into force.

Arcle 30

Terminaon

This Convenon shall remain in force unl terminated by a Contracng State. Either

Contracng State may terminate this Convenon, through diplomac channels, by givingnoce of terminaon at least six months before the end of any calendar year following the

h year aer the entry into force. In such event, this Convenon shall cease to have eect:

a) in respect of taxes withheld at source, to income derived on or aer 1 January of the

calendar year next following the year in which the noce is given;

b) in respect of other taxes on income and taxes on capital, to taxes chargeable for any

taxable year beginning on or aer 1 January of the calendar year next following the

year in which the noce is given.

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In witness whereof, the undersigned, duly authorised thereto, have signed this Convenon.

Done at Bern this eighteen day of October 2010, in duplicate, in the English and Spanish

languages, each text being equally authenc.

For the Principality of Liechtenstein:

(gez. Hubert Bchel)

For the Oriental Republic of Uruguay:

(gez. Fernando Lorenzo)

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Protocol

At the signing today of the Convenon between the Principality of Liechtenstein and the

Oriental Republic of Uruguay for the Avoidance of Double Taxaon with respect to Taxes onIncome and on Capital, the undersigned have agreed upon the following provisions, which

shall form an integral part of this Convenon:

1. With respect to paragraph 1 of Arcle 4:

a) a company incorporated in Liechtenstein or, if incorporated outside Liechtenstein,

being managed or controlled in Liechtenstein, shall be considered to be a resident of

Liechtenstein;

b) any person other than an individual constuted under the laws of and established in

Liechtenstein or, if constuted and established outside Liechtenstein, being managedor controlled in Liechtenstein, shall be considered to be a resident of Liechtenstein;

c) the enes included in Arcle 7 of Title 7 Texto Ordenado 1996 under the law of

Uruguay, shall be considered to be a resident of Uruguay.

2. For the purpose of this Convenon it is understood that investment fund or scheme

means a scheme or arrangement that is recognised under the legislaon of a Contracng

State regulaon funds.

3. For the purpose of this Convenon it is understood that pension schemes means a schemeor arrangement that is recognised under the legislaon of a Contracng State regulaon

pension schemes.

4. With respect to Arcle 26, it is understood that:

a) this arcle only obliges the Contracng States to exchange informaon upon request

and only in respect of taxable periods beginning on or aer the entry into force of the

Convenon;

b) exchange of informaon according to paragraph 1 refers to informaon that is

foreseeably relevant to the determinaon, assessment and collecon of such taxeswith respect to persons subject to such taxes, or the invesgaon in or prosecuon of

criminal tax maers in relaon to such persons;

c) the informaon exchanged

aa) may not be used for any purpose other than for the purposes stated in paragraph

1 without the express wrien consent of the competent authority of the

requested Contracng State; and

bb) must not be disclosed to any other State or sovereign territory not party to

this Convenon;

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d) personal data may be transmied to the extent necessary for the exchange of

informaon according to this arcle and subject to the provisions of the law of the

supplying Contracng State;

e) informaon received by the requested Contracng State in conjuncon with a

request for assistance under this arcle shall likewise be treated as condenal in the

requested Contracng State;

f) in addion to the circumstances described in paragraph 3, a request for exchange of

informaon can be declined, if the request for informaon is not in conformity with

this Agreement, does not meet the requirements laid out in the subsequent

subparagraph g, or if:

aa) the applicant Contracng State has not pursued all means available in its own

territory to obtain the informaon, except where recourse to such means would

give rise to disproporonate diculty; or

bb) the informaon is requested by the applicant Contracng State to administer orenforce a provision of the tax law of the applicant Contracng State, or any

requirement connected therewith, which discriminates against a naonal of the

requested Contracng State as compared with a naonal of the applicant

Contracng State in the same circumstances.

cc) the informaon requested is subject to legal privilege.

g) any request for informaon shall in all cases specify in wring:

aa) the identy of the person under examinaon or invesgaon;

bb) the taxable period for which the informaon is sought;

cc) a statement of the informaon sought including its nature and the form in whichthe applicant Contracng State wishes to receive the informaon from the

requested Contracng State;

dd) the maer under the applicant Contracng States tax law with respect to

which the informaon is sought;

ee) grounds for believing that the informaon requested is foreseeably relevant to

the administraon and enforcement of the domesc tax laws of the applicant

Contracng State with regard to the person specied in subparagraph aa);

) grounds for believing that the informaon requested is held in the requested

Contracng State or is in the possession or control of a person within the

jurisdicon of the requested Contracng State;gg) to the extent known, the name and address of any person believed to be in

possession of the requested informaon;

hh) a statement that the request is in conformity with the law and administrave

pracces of the applicant Contracng State, that if the requested informaon was

within the jurisdicon of the applicant Contracng State then the competent

authority of the applicant Contracng State would be able to obtain the

informaon under the laws or in the normal course of administrave pracce of

the applicant Contracng State and that it is in conformity with this Agreement;

and

ii) a statement that the applicant Contracng State has pursued all means availablein its own territory to obtain the informaon, except those that would give rise to

disproporonate dicules.

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In witness whereof, the undersigned, duly authorised thereto, have signed this Protocol.

Done at Bern this eighteen day of October 2010, in duplicate, in the English and Spanish

languages, each text being equally authenc.

For the Principality of Liechtenstein:

(gez. Hubert Bchel)

For the Oriental Republic of Uruguay:

(gez. Fernando Lorenzo)

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DTC agreement between Uruguay and Liechtenstein

Documents

Transcript of DTC agreement between Uruguay and Liechtenstein