Rwanda Convention Fiscale Avec L'ile Maurice Tax Treaty with Mauritius

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Rwanda

Convention fiscale avec l’Ile Maurice Tax treaty with Mauritius

Signée le 30 juillet 2001, entrée en vigueur le 14 avril 2003 Signed : July 30, 2001 - Effective : April 14, 2003

Art.1.- Personal Scope 5) The competent authorities of the Contracting States shall notify each other This Agreement shall apply to persons of changes which have been made in their who are residents of one or both of the respective taxation laws, and if it seems Contracting States. desirable to amend any Article of this Agreement, without affecting the general Art.2.- Taxes Covered principles thereof, the necessary amend- ments may be made by mutual consent by 1) This Agreement shall apply to taxes on means of an Exchange of Notes. income imposed on behalf of a Contracting State or its political subdivisions. Art.3.- General Definitions

2) There shall be regarded as taxes on in- 1) In this Agreement, unless the context come all taxes imposed on total income or otherwise requires: on elements of income. • a) the term « Mauritius » means the Republic of Mauritius and includes: 3) The existing taxes to which this Agree- - i) all the territories and islands ment shall apply are in particular: which, in accordance with the laws • a) in Mauritius, the income tax; herei- of Mauritius, constitute the State of nafter referred to as « Mauritius tax ») ; Mauritius; • b) in Rwanda, the income tax; herei- - ii) the territorial sea of Mauritius; nafter referred to as « Rwandan tax » and - iii) any area outside the territorial 4) This Agreement shall also apply to any sea of Mauritius which in accor- other taxes of a substantially similar cha- dance with international law has racter which are imposed by either been or may hereafter be designa- Contracting State after the date of signatu- ted, under the laws of Mauritius, as re of this Agreement in addition to, or in an area, including the Continental place of, the existing taxes. Shelf, within which the rights of Mauritius with respect to the sea,

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the sea-bed and sub-soil and their • j) the term « tax » means Mauritius tax natural resources may be exercised; or Rwandan tax, as the context requi- • b) the term « Rwanda » means all terri- res. tories, islands and lakes which in accordance with the laws of Rwanda As regards the application of the Agree- constitute the State of Rwanda; ment at any time by a Contracting State, • c) the terms « a Contracting State » and any term not defined therein shall, unless « the other Contracting State » mean the context otherwise requires, have the Mauritius or Rwanda, as the context meaning that it has at that time under the requires; law of that State for the purposes of the • d) the term « company » means any taxes to which the Agreement applies, any body corporate or any entity which is meaning under the applicable tax laws of treated as a body corporate for tax pur- that State prevailing over a meaning given poses; to the term under other laws of that State. • e) the term « competent authority » means: Art.4.- Resident • i) in Mauritius, the Commissioner of Income Tax or his authorised represen- 1) For the purposes of this Agreement, the tative; and term « resident of a Contracting State » means any person who, under the laws of ii) in Rwanda, the Commissioner' of Inco- that State, is liable to tax therein by reason me Tax or his authorised representative; of his domicile, residence, place of mana- • f) the terms « enterprise of a Contrac- gement or any other criterion of a similar ting State » and « enterprise of the nature and also includes that State and any other Contracting State » mean respec- political subdivision or local authority the- tively an enterprise carried on by a re- reof. This term, however, does not include sident of a Contracting State and an en- any person who is liable to tax in that State terprise carried on by a resident of the in respect only of income from sources in other Contracting State; that State. • g) the term « international traffic » means any transport by a ship or air- 2) Where by reason of the provisions of craft operated by an enterprise which paragraph 1 an individual is a resident of has its place of effective management both Contracting States, then his status in a Contracting State, except when the shall be determined in accordance with the ship or aircraft is operated solely bet- following rules: ween places in the other Contracting • a) he shall be deemed to be a resident State; only of the State in which he has a • h) the term « national » means any in- permanent home available to him. If he dividual having the citizenship of a has a permanent home available to him Contracting State and any legal person, in both States, he shall be deemed to be partnership (societe) or association de- a resident of the State with which his riving its status as such from the laws personal and economic relations are in force in a Contracting State; closer (centre of vital interests) ; • i) the term « person » includes an indi- • b) if the State in which he has his cen- vidual, a company, a trust and any tre of vital interests cannot be determi- other body of persons which is treated ned, or if he does not have a permanent as an entity for tax purposes; and home available to him in either State,

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he shall be deemed to be a resident on- • a) a building site or construction, ins- ly of the State in which he has an habi- tallation or assembly project, or super- tual abode; visory activities in connection there- • c) if he has an habitual abode in both with only if the site, project or activity States or in neither of them, he shall be lasts more than 12 months. deemed to be a resident only of the • b) the furnishing of services including State of which he is a national; consultancy services by an enterprise • d) if he is a national of both States or of a Contracting State through em- of neither of them, the competent au- ployees or other personnel engaged in thorities of the Contracting States shall the other Contracting State, provided settle the question by mutual agree- that such activities continue for the ment. same or a connected project for a period or periods aggregating to more 3) Where by reason of the provisions of than 12 months. paragraph 1 a person other than an individual is a resident of both Contracting Sta- 4) Notwithstanding the preceding provi- tes, then it shall be deemed to be a resident sions of this Article, the term « permanent only of the State in which its place of ef- establishment » shall be deemed not to in- fective management is situated. clude: • a) the use of facilities solely for the Art.5.- Permanent Establishment purpose of storage, display or delivery of goods or merchandise belonging to 1) For the purposes of this Agreement, the the enterprise; term « permanent establishment » means a • b) the maintenance of a stock of goods fixed place of business through which the or merchandise belonging to the enter- business of an enterprise is wholly or par- prise solely for the purpose of storage, tly carried on. display or delivery; • c) the maintenance of a stock of goods 2) The term « permanent establishment » or merchandise belonging to the enter- shall include: prise solely for the purpose of proces- • a) a place of management; sing by another enterprise; • b) a branch; • d) the maintenance of a fixed place of • c) an office; business solely for the purpose of pur- • d) a factory; chasing goods or merchandise, or for • e) a workshop; collecting information, for the enterpri- • f) a warehouse, in relation to a person se; providing storage facilities for others; • e) the maintenance of a fixed place of • g) a mine, an oil or gas well, a quarry business solely for the purpose of ad- or any other place of extraction of na- vertising, for the supply of informa- tural resources; and tion, for scientific research or for simi- • h) an installation or structure used for lar activities which have a preparatory the exploration of natural resources. or auxiliary character, for the enterprise; and 3) The term « permanent establishment » • f) the maintenance of a fixed place of likewise encompasses: business solely for any combination of activities mentioned in subparagraphs (a) to (e) , provided that the overall ac-

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tivity of the fixed place of business re- 2) The term « immovable property » shall sulting from this combination is of a have the meaning which it has under the preparatory or auxiliary character. law of the Contracting State in which the property in question is situated. The term 5) Notwithstanding the provisions of para- shall in any case include property accesso- graphs I and 2, a person acting in a ry to immovable property, livestock and Contracting State on behalf of an enterpri- equipment used in agriculture and forestry, se of the other Contracting State (other rights to which the provisions of general than an agent of an independent status to law respecting landed property apply, usu- whom paragraph 6 of this Article applies) fruct of immovable property and rights to notwithstanding that he has no fixed place variable or fixed payments as considera- of business in the first-mentioned State tion for the working of, or the right to shall be deemed to be a permanent esta- work, mineral deposits, sources and other blishment in that State if he has, and habi- natural resources. Ships, boats and aircraft tually exercises, a general authority in the shall not be regarded as immovable pro- first-mentioned State to conclude contracts perty. in the name of the enterprise, unless his activities are limited to the purchase of 3) The provisions of paragraph 1 shall ap- goods or merchandise for the enterprise. ply to income derived from the direct use, letting or use in any other form of immo- 6) An enterprise shall not be deemed to vable property. have a permanent establishment in a Contracting State merely because it carries 4) The provisions of paragraphs 1 and 3 on business in that State through a broker, shall also apply to the income from immo- general commission agent or any other vable property of an enterprise and to in- agent of an independent status, provided come from immovable property used for that such persons are acting in the ordinary the performance of independent personal course of their business. services.

7) The fact that a company which is a resi- Art.7.- Business Profits dent of a Contracting State controls or is controlled by a company which is a resi- 1) The profits of an enterprise of a dent of the other Contracting State, or Contracting State shall be taxable only in which carries on business in that other Sta- that State unless the enterprise carries on te (whether through a permanent esta- business in the other Contracting State blishment or otherwise) , shall not of itself through a permanent establishment situa- constitute either company a permanent es- ted therein. If the enterprise carries on bu- tablishment of the other. siness as aforesaid, the profits of the enterprise may be taxed in the other State but Art.6.- Income From Immovable Property only so much of them as is attributable to that permanent establishment. 1) Income derived by a resident of a Contracting State from immovable proper- 2) Subject to the provisions of paragraph ty, including income from agriculture or 3, where an enterprise of a Contracting forestry, is taxable in the Contracting State State carries on business in the other in which such property is situated. Contracting State through a permanent establishment situated therein, there shall in

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each Contracting State be attributed to that to be attributed to a permanent establish- permanent establishment the profits which ment on the basis of an apportionment of it might be expected to make if it were a the total profits of the enterprise to its va- distinct and separate enterprise engaged in rious parts, nothing in paragraph 2 shall the same or similar activities under the preclude that Contracting State from de- same or similar conditions and dealing termining the profits to be taxed by such wholly independently with the enterprise an apportionment as may be customary. of which it is a permanent establishment. The method of apportionment adopted shall, however, be such that the result shall 3) In determining the profits of a perma- be in accordance with the principles nent establishment, there shall be allowed contained in this Article. as deductions expenses which are incurred for the purposes of the permanent esta- 5) No profits shall be attributed to a per- blishment including executive and general manent establishment by reason of the me- administrative expenses so incurred, where purchase by that permanent establish- ther in the State in which the permanent ment of goods or merchandise for the en- establishment is situated or elsewhere. terprise. However, no such deduction shall be allowed in respect of amounts, if any, paid 6) For the purposes of the preceding para- (otherwise than towards reimbursement of graphs, the profits to be attributed to the actual expenses) by the permanent esta- permanent establishment shall be determi- blishment to the head office of the enter- ned by the same method year by year un- prise or any of its other offices, by way of less there is good and sufficient reason to royalties, fees or other similar payments in the contrary. return for the use of patents or other rights, or by way of commission, for specific ser- 7) Where profits include items of income vices performed or for management, or, which are dealt with separately in other except in the case of a banking enterprise, Articles of this Agreement, then the provi- by way of interest on moneys lent to the sions of those Articles shall not be affected permanent establishment. Likewise, no by the provisions of this Article. account shall be taken, in determining the profits of a permanent establishment, of Art.8.- Shipping and Air Transport amounts charged (otherwise than towards reimbursement of actual expenses) , by the 1) Profits of an enterprise from the opera- permanent establishment to the head office tion or rental of ships or aircraft in interna- of the enterprise or any of its other offices, tional traffic and the rental of containers by way of royalties, fees or other similar and related equipment which is incidental payments in return for the use of patents or to the operation of ships or aircraft in in- other rights, or by way of commission for ternational traffic shall be taxable only in specific services performed or for mana- the Contracting State in which the place of gement, or, except in the case of a banking effective management of the enterprise is enterprise, by way of interest on moneys situated. lent to the head office of the enterprise or any of its other offices. 2) If the place of effective management of a shipping enterprise is aboard a ship or 4) In so far as it has been customary in a boat, then it shall be deemed to be situated Contracting State to determine the profits in the Contracting State in which the home

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harbour of the ship or boat is situated, or, priate adjustment to the amount of the tax if there is no such home harbour, in the charged therein on those profits. In deter- Contracting State of which the operator of mining such adjustment, due regard shall the ship or boat is a resident. be had to the other provisions of this Agreement and the competent authorities 3) The provisions of paragraph 1 shall also of the Contracting States shall if necessary apply to profits from the participation in a consult each other. pool, a joint business or an international operating agency. Art.10.- Dividends Art.9.- Associated Enterprises 1) Dividends paid by a company which is 1) Where: a resident of a Contracting State to a resi- • a) an enterprise of a Contracting State dent of the other Contracting State shall, if participates directly or indirectly in the the recipient is the beneficial owner of the management, control or capital of an dividends, be taxable only in that other enterprise of the other Contracting Sta- State. te; or • b) the same persons participate directly 2) The term « dividends » as used in this or indirectly in the management, Article means income from shares or other control or capital of an enterprise of a rights, not being debt claims, participating Contracting State and an enterprise of in profits, as well as income from other the other Contracting State, corporate rights which is subjected to the and in either case conditions are made or same taxation treatment as income from imposed between the two enterprises in shares by the laws of the Contracting State their commercial or financial relations of which the company making the distribu- which differ from those which would be tion is a resident. made between independent enterprises, then any profits which would, but for those 3) The provisions of paragraph 1 shall not conditions, have accrued to one of the en- apply if the beneficial owner of the divi- terprises, but, by reason of those condi- dends, being a resident of a Contracting tions, have not so accrued, may be inclu- State, carries on business in the other ded in the profits of that enterprise and Contracting State of which the company taxed accordingly. paying the dividends is a resident, through a permanent establishment situated therein, 2) Where a Contracting State includes in or performs in that other State independent the profits of an enterprise of that State-- personal services from a fixed base situa- and taxes accordingly--profits on which an ted therein, and the holding in respect of enterprise of the other Contracting State which the dividends are paid is effectively has been charged to tax in that other State connected with such permanent establish- and the profits so included are profits ment or fixed base. In such a case, the pro- which would have accrued to the enterpri- visions of Article 7 or Article 14, as the se of the first-mentioned State if the condi- case may be, shall apply. tions made between the two enterprises had been those which would have been 4) Where a company which is a resident of made between independent enterprises, a Contracting State derives profits or in- then that other State shall make an appro- come from the other Contracting State,

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that other State may not impose any tax on respect of which the interest is paid is ef- the dividends paid by the company except fectively connected with such permanent in so far as such dividends are paid to a establishment or fixed base. In such a case, resident of that other State or in so far as the provisions of Article 7 or Article 14, as the holding in respect of which the divi- the case may be, shall apply. dends are paid is effectively connected with a permanent establishment or a fixed 4) Interest shall be deemed to arise in a base situated in that other State, nor sub- Contracting State when the payer is a resi- ject the company's undistributed profits to dent of that State. Where, however, the a tax on undistributed profits, even if the person paying the interest, whether he is a dividends paid or the undistributed profits resident of a Contracting State or not, has consist wholly or partly of profits or inco- in a Contracting State a permanent esta- me arising in such other State. blishment or a fixed base in connection with which the indebtedness on which the Art.11.- Interest interest is paid was incurred, and such interest is borne by such permanent establish- 1) Interest arising in a Contracting State ment or fixed base, then such interest shall and paid to a resident of the other Contrac- be deemed to arise in the State in which ting State shall, if the recipient is the bene- the permanent establishment or fixed base ficial owner of the interest, be taxable only is situated. in that other. State. 5) Where, by reason of a special relations- 2) The term « interest » as used in this Ar- hip between the payer and the beneficial ticle means income from debt-claims of owner or between both of them and some every kind, whether or not secured by other person, the amount of the interest, mortgage and whether or not carrying a having regard to the debt-claim for which right to participate in the debtor's profits, it is paid, exceeds the amount which would and in particular, income from government have been agreed upon by the payer and securities and income from bonds or de- the beneficial owner in the absence of such bentures, including premiums and prizes relationship, the provisions of this Article attaching to such securities, bonds or de- shall apply only to the last-mentioned bentures. Penalty charges for late payment amount. In such a case, the excess part of shall not be regarded as interest for the the payments shall remain taxable accor- purpose of this Article. The term ding to the laws of each Contracting State, « interest » shall not include any item due regard being had to the other provi- which is treated as a dividend under the sions of this Agreement. provisions of Article 10 of this Agreement. Art.12.- Royalties 3) The provisions of paragraph 1 shall not apply if the beneficial owner of the inte- 1) Royalties arising in a Contracting State rest, being a resident of a Contracting Sta- and paid to a resident of the other Contrac- te, carries on business in the other Contrac- ting State shall, if the recipient is the bene- ting State in which the interest arises, ficial owner of the royalties, be taxable through a permanent establishment situa- only in that other State. ted therein, or performs in that other State independent personal services from a fixed 2) The term « royalties » as used in this base situated therein, and the debt-claim in Article means payments of any kind recei-

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ved as a consideration for the use of, or the the amount which would have been agreed right to use, any copyright of literary, artis- upon by the payer and the beneficial owner tic or scientific work (including cinemato- in the absence of such relationship, the graph films and films, tapes or discs for provisions of this Article shall apply only radio or television broadcasting) , any pa- to the last-mentioned amount. In such a tent, trade mark, design or model, compu- case, the excess part of the payments shall ter programme, plan, secret formula or remain taxable according to the laws of process, or for information concerning in- each Contracting State, due regard being dustrial, commercial or scientific expe- had to the other provisions of this Agree- rience. ment.

3) The provisions of paragraph 1 shall not Art.13.- Capital Gains apply if the beneficial owner of the royalties, being a resident of a Contracting Sta- 1) Gains derived by a resident of a te, carries on business in the other Contrac- Contracting State from the alienation of ting State in which the royalties arise, immovable property referred to in Article through a permanent establishment situa- 6 and situated in the other Contracting Sta- ted therein, or performs in that other State te may be taxed in that other State. independent personal services from a fixed base situated therein, and the right or pro- 2) Gains from the alienation of movable perty in respect of which the royalties are Property forming part of the business pro- paid is effectively connected with such perty of a permanent establishment which permanent establishment or fixed base. In an enterprise of a Contracting State has in such a case, the provisions of Article 7 or the other Contracting State or of movable Article 14, as the case may be, shall apply. property pertaining to a fixed base available to a resident of a Contracting State in 4) Royalties shall be deemed to arise in a the other Contracting State for the purpose, Contracting State when the payer is a resi- of performing independent personal servi- dent of that State. Where, however, the ces, including such gains from the aliena- person paying the royalties, whether he is a tion of such a Permanent establishment resident of a Contracting State or not, has (alone or with the whole enterprise) Or of in a Contracting State a Permanent esta- such fixed base, may be taxed in that other blishment or a fixed base with which the State. right or Property in respect of which the royalties are paid is effectively connected, 3) Gains from the alienation of ships or and such royalties are borne by such per- aircraft operated in international traffic or manent establishment or fixed base, then movable property pertaining to the opera- such royalties shall be deemed to arise in tion of such ships or aircraft shall be taxa- the State in which the Permanent esta- ble only in the Contracting State in which blishment or fixed base is situated. the place of effective Management of the enterprise is situated. 5) Where, by reason of a special relationship between the payer and the beneficial 4) Gains from the alienation of any proper- owner or between both of them and some ty other than that referred to in paragraphs other person, the amount of the royalties 1, 2 and 3 shall be taxable only in the paid, having regard to the use, right or in- Contracting State of which the alienator is formation for which they are paid, exceeds a resident.

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• b) the remuneration is paid by, or, on Art.14.- Independent Personal Services behalf of an employer who is not a resident of the other State; and 1) Income derived by a resident of a • c) the remuneration is not borne by a Contracting State in respect of professional permanent establishment or a fixed ba- services or other activities of an indepen- se which the employer has in the other dent character shall be taxable only in that State. State unless he has a fixed base regularly available to him in the other Contracting 3) Notwithstanding the preceding provi- State for the purpose of performing his ac- sions of this Article, remuneration derived tivities. If he has such a fixed base, the in- in respect of an employment exercised come may be taxed in the other State but aboard a ship or aircraft operated in inter- only so much of it as is attributable to that national traffic may be taxed in the fixed base. Contracting State in which the place of effective management of the enterprise is 2) The term « professional services » in- situated. cludes especially independent scientific, literary, artistic, educational or teaching Art.16.- Directors' Fees activities as well as the independent activities of physicians, lawyers, engineers, ar- 1) Directors' fees and other similar chitects, dentists and accountants. payments derived by a resident of a Contracting State in his capacity as a Art.15.- Dependent Personal Services member of the board of directors of a company which is a resident of the other 1) Subject to the provisions of Articles 16, Contracting State may be taxed in that 18, 19 and 20, salaries, wages and other other State. similar remuneration derived by a resident of a Contracting State in respect of an em- Art.17.- Entertainers And Sportsmen ployment shall be taxable only in that State unless the employment is exercised in the 1) Notwithstanding the provisions of Arti- other Contracting State. If the employment cles 14 and 15, income derived by a resi- is so exercised, such remuneration as is dent of a Contracting State as an entertai- derived therefrom may be taxed in that ner such as a theatre, motion picture, radio other State. or television artiste, or a musicians or as a sportsman, from his personal activities as 2) Notwithstanding the provisions of para- such exercised in the other Contracting graph 1, remuneration derived by a resi- State, may be taxed in that other State. dent of a Contracting State in respect of an employment exercised in the other 2) Where income in respect of personal Contracting State shall be taxable only in activities exercised by an entertainer or a the first-mentioned State if: sportsman in his capacity as such accrues • a) the recipient is present in the other not to the entertainer or sportsman himself State for a period or periods not excee- but to another person, that income may, ding in the aggregate 183 days in any notwithstanding the provisions of Articles 12-month period commencing or en- 7, 14 and 15, be taxed in the Contracting ding in the fiscal year concerned; and State in which the activities of the entertainer or sportsman are exercised.

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State and the individual is a resident of 3) Notwithstanding the provisions of para- that State who: graphs 1 and 2, income derived from acti- - i) is a national of that State; or vities, referred to in paragraph 1, perfor- - ii) did not become a resident of that med under a cultural agreement or arran- State solely for the purpose of ren- gement between the Contracting States dering the services. shall be exempt from tax in the Contrac- ting State in which the activities are exer- 2) cised if the visit to that State is wholly or • a) Any pension paid by, or out of funds substantially supported by funds of either created by, a Contracting State or a po- Contracting State, a local authority or pu- litical subdivision, local authority or blic institution thereof. statutory body thereof to an individual in respect of services rendered to that Art.18.- Pensions State or subdivision, authority or body shall be taxable only in that State. 1) Subject to the provisions of paragraph 2 • b) However, such pension shall be of Article 19, pensions and other similar taxable only in the other Contracting payments arising in a Contracting State State if the individual is a resident of, and paid in consideration of past em- and a national of, that State. ployment to a resident of the other Contracting State, shall be taxable only in 3) The provisions of Articles 15, 16, 17 that other State. and 18 shall apply to salaries, wages and other similar remuneration, and to pen- 2) Notwithstanding the provisions of para- sions, in respect of services rendered in graph 1, pensions paid and other payments connection with a business carried on by a made under a public scheme which is part Contracting State, or a political subdivi- of the social security system of a Contrac- sion, local authority or statutory body the- ting State or a political subdivision or a reof. local authority thereof shall be taxable only in that State. Art.20.- Professors and Teachers

Art.19.- Government Service 1) Notwithstanding the provisions of Arti- cle 15, a professor or teacher who makes a 1) temporary visit to one of the Contracting • a) Salaries, wages, and other similar States for a period not exceeding two years remuneration, other than a pension, for the purpose of teaching or carrying out paid by a Contracting State or a politi- research at a university, college, school or cal subdivision, local authority or sta- other educational institution in that State tutory body thereof to an individual in and who is, or immediately before such respect of services rendered to that Sta- visit was, a resident of the other Contrac- te or subdivision, authority or body ting State shall, in respect of remuneration shall be taxable only in that State. for such teaching or research, be exempt • b) However, such salaries, wages and from tax in the first-mentioned State, pro- other similar remuneration shall be vided that such remuneration is derived by taxable only in the other Contracting him from outside that State. State if the services are rendered in that

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2) The provisions of this Article shall not Double taxation shall be eliminated as fol- apply to income from research if such re- lows: search is undertaken not in the public interest but wholly or mainly for the private 1) benefit of a specific person or persons. • a) Where a resident of a Contracting State derives income from the other Art.21.- Students and Business Apprenti- Contracting State, the amount of tax on ces that income payable in that other Contracting State, in accordance with 1) A student or business apprentice who is the provisions of this Agreement, may present in a Contracting State solely for be credited against the tax imposed by the purpose of his education or training the Contracting State on that resident. and who is, or immediately before being so • b) The credit under paragraph (a) shall present was, a resident of the other not exceed that part of the tax imposed Contracting State, shall be exempt from by the Contracting State (as computed tax in the first-mentioned State on before allowing any such credit) , payments received from outside that first- which is attributable to the income mentioned State for the purposes of his which may be taxed in the other maintenance, education or training. Contracting State.

Art.22.- Other Income 2) For the purposes of allowance as a credit the tax payable in Mauritius or Rwan- 1) Subject to the provisions of paragraph 2 da, as the context requires, shall be dee- of this Article, items of income of a resi- med to include the tax which is otherwise dent of a Contracting State, wherever ari- payable in either of the two Contracting sing, not dealt with in the foregoing Arti- States but has been reduced or waived by cles of this Agreement shall be taxable on- either Contracting State in order to promo- ly in that State. te its economic development.

2) The provisions of paragraph 1 shall not Art.24.- Non-Discrimination apply to income if the recipient of such income, being a resident of a Contracting 1) The nationals of a Contracting State State, carries on business in the other shall not be subjected in the other Contrac- Contracting State through a permanent es- ting State to any taxation or any require- tablishment situated therein, or performs in ment connected therewith which is other or that other State independent personal ser- more burdensome than the taxation and vices from a fixed base situated therein, connected requirements to which nationals and a right or property in respect of which of that other State in the same circumstan- the income is paid is effectively connected ces in particular with respect to residence, with such permanent establishment or are or may be subjected. This provision fixed base. In such a case, the provisions shall, notwithstanding the provisions of of Article 7 or Article 14, as the case may Article 1, also apply to persons who are be, shall apply. not residents of one or both of the Contrac- ting States. Art.23.- Elimination of Double Taxation 2) The taxation on a permanent establishment which an enterprise of a Contracting

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State has in the other Contracting State dance with the provisions of this Agree- shall not be less favourably levied in that ment. other State than the taxation levied on enterprises of that other State carrying on the 2) The competent authority shall endea- same activities. vour, if the objection appears to it to be justified and if it is not itself able to arrive 3) Enterprises of a Contracting State, the at an appropriate solution, to resolve the capital of which is wholly or partly owned case by mutual agreement with the compe- or controlled, directly or indirectly, by one tent authority of the other Contracting Sta- or more residents of the other Contracting te, with a view to the avoidance of taxation State, shall not be subjected in the first- which is not in accordance with the mentioned State to any taxation or any re- Agreement. Any agreement reached shall quirement connected therewith which is be implemented notwithstanding any time other or more burdensome than the taxa- limits in the domestic law of the Contrac- tion and connected requirements to which ting States. other similar enterprises of that first- mentioned State are or may be subjected. 3) The competent authorities of the Contracting States shall endeavour to re- 4) Nothing in this Article shall be cons- solve by mutual agreement any difficulties trued as obliging a Contracting State to or doubts arising as to the interpretation or grant to residents of the other Contracting application of this Agreement. They may State any personal allowances, reliefs and also consult together for the elimination of reductions for taxation purposes on ac- double taxation in cases not provided for count of civil status or family responsibili- in this Agreement. ties which it grants to its own residents. 4) The competent authorities of the 5) In this Article the terra « taxation » Contracting States may communicate with means taxes which are the subject of this each other directly, including through a Agreement. joint commission consisting of themselves or their representatives, for the purpose of Art.25.- Mutual Agreement Procedure reaching an agreement in the sense of the preceding paragraphs. 1) Where a person considers that the ac- tions of one or both of the Contracting Sta- Art.26.- Exchange of Information tes result or will result for him in taxation not in accordance with the provisions of 1) The competent authorities of the this Agreement, he may, irrespective of the Contracting States shall exchange such remedies provided by the domestic law of information as is necessary for carrying those States, present his case to the compe- out the provisions of this Agreement or of tent authority of the Contracting State of the domestic laws of the Contracting Sta- which he is a resident or, if his case comes tes concerning taxes covered by this under paragraph 1 of Article 24, to that of Agreement in so far as the taxation the- the Contracting State of which he is a na- reunder is not contrary to the Agreement. tional. The case must be presented within The exchange of information is not restric- three years from the first notification of the ted by Article 1. Any information so ex- action resulting in taxation not in accor- changed shall be treated as secret in the same manner as information obtained un-

Rwanda - Mauritius tax treaty 12/13

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der the domestic law of that State and shall Agreement shall enter into force on the be disclosed only to persons, or authorities date of the later of these notifications. (including courts or administrative bodies) concerned with the assessment or collec- 2) The provisions of this Agreement shall tion of, the enforcement or prosecution in apply: respect of, or the determination of appeals • a) in Mauritius, on income for any in- in relation to, the taxes covered by this come year beginning on or after the Agreement. Such persons or authorities first day of July next following the date shall use the information only for such upon which this Agreement enters into purposes. They may disclose the informa- force; and tion in public court proceedings or in judi- • b) in Rwanda, on income for any in- cial decisions. come year beginning on or after the first day of January next following the 2) In no case shall the provisions of para- date upon which this Agreement enters graph 1 be construed so as to impose on a into force. Contracting State the obligation: • a) to carry out administrative measures Art.29.- Termination at variance with the laws and administrative practice of that or of the other 1) This Agreement shall remain in force Contracting State; indefinitely but either of the Contracting • b) to supply information which is not States may terminate the Agreement obtainable under the laws or in the through diplomatic channels, by giving to normal course of the administration of the other Contracting State written notice that or of the other Contracting State; of termination not later than 30 June of any • c) to supply information which would calendar year starting five years after the disclose any trade, business, industrial, year in which the Agreement entered into commercial or professional secret or force. trade process, or information, the dis- closure of which would be contrary to 2) In such event the Agreement shall cease public policy (ordre public) . to have effect: • a) in Mauritius, on income for any in- Art.27.- Diplomatic Agents and Consular come year beginning on or after the Officers first day of July next following the calendar year in which such notice is gi- Nothing in this Agreement shall affect the ven; and fiscal privileges of members of diplomatic • b) in Rwanda, on income for any in- missions or 'Consular posts under the ge- come year beginning on or after the neral rules of international law or under first day of January next following the the provisions of special agreements. calendar year in which such notice is given. Art.28.- Entry Into Force In witness whereof, the undersigned, being 1) Each of the Contracting Parties shall duly authorised thereto by their respective notify to the other the completion of the Governments, have signed this Agreement. procedures required by its law for the ente- ring into force of this Agreement. The

Rwanda - Mauritius tax treaty 13/13