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Convention Betweenthe Government of The CONVENTION BETWEENTHE GOVERNMENT OF THE REPUBLIC OF SLOVENIA ANDTHE COUNCIL OF MINISTERS OF THE REPUBLIC OF ALBANIA FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL The Republic of Slovenia and the Republic of Albania, desiring to conclude a Convention forthe Avoidance of Double Taxation and the Prevention of Fiscal Evasion with respect toTaxes on Income and on Capital,Have agreed as follows: Article 1PERSONS COVEREDThis Convention shall apply to persons who are residents of one or both of theContracting States. Article 2TAXES COVERED1. This Convention shall apply to taxes on income and on capital imposed on behalf of aContracting State or of its political subdivisions or local authorities, irrespective of the mannerin which they are levied.2. There shall be regarded as taxes on income and on capital all taxes imposed on totalincome, on total capital, or on elements of income or of capital, including taxes on gains fromthe alienation of movable or immovable property, taxes on total amounts of wages or salariespaid by enterprises, as well as taxes on capital appreciation.3. The existing taxes to which the Convention shall apply are in particular:a) in Slovenia:(i) the tax on income of legal persons;(ii) the tax on income of individuals;(iii) the tax on property;(hereinafter referred to as "Slovenian tax");b) in Albania:(i) the income taxes (including corporate profits tax and personal income tax);(ii) the tax on small business activities;(iii) the property tax;(hereinafter referred to as “Albanian tax”).4. The Convention shall apply also to any identical or substantially similar taxes that areimposed after the date of signature of the Convention in addition to, or in place of, theexisting taxes. The competent authorities of the Contracting States shall notify each other ofany significant changes that have been made in their taxation laws. Article 3GENERAL DEFINITIONS1. For the purposes of this Convention, unless the context otherwise requires:a) the term "Slovenia" means the Republic of Slovenia and, when used in ageographical sense, means the territory of Slovenia as well as those maritime areasover which Slovenia may exercise sovereign or jurisdictional rights in accordancewith its internal legislation and international law;b) the term “Albania” means the Republic of Albania, and when used in a geographicalsense means the territory of Albania including territorial waters and air space overthem as well as any area beyond the territorial waters of the Republic of Albaniawhich, under its laws and in accordance with international law, is an area withinwhich the Republic of Albania may exercise its rights with respect to the seabed andsubsoil and their natural resources;c) the terms "a Contracting State" and "the other Contracting State" mean Slovenia orAlbania, as the context requires;d) the term "person" includes an individual, a company or any other body of persons;e) the term "company" means any legal person or body corporate or any entity that istreated as a body corporate for tax purposes;f) the terms "enterprise of a Contracting State" and "enterprise of the otherContracting State" mean respectively an enterprise carried on by a resident of aContracting State and an enterprise carried on by a resident of the otherContracting State;g) the term "international traffic" means any transport by a ship, aircraft or road vehicleoperated by an enterprise that has its place of effective management in aContracting State, except when the ship, aircraft or road vehicle is operated solelybetween places in the other Contracting State;h) the term "competent authority" means:(i) in Slovenia: the Ministry of Finance of the Republic of Slovenia or itsauthorised representative;(ii) in Albania: the General Taxation Department;i) the term "national", in relation to a Contracting State, means:(i) any individual possessing the nationality of a Contracting State;(ii) any legal person, partnership or association deriving its status as such fromthe laws in force in a Contracting State;2. As regards the application of the Convention at any time by a Contracting State, any termnot defined therein shall, unless the context otherwise requires, have the meaning that it hasat that time under the law of that State for the purposes of the taxes to which the Conventionapplies, any meaning under the applicable tax laws of that State prevailing over a meaninggiven to the term under other laws of that State. Article 4RESIDENT1. For the purposes of this Convention, the term "resident of a Contracting State" means anyperson who, under the laws of that State, is liable to tax therein by reason of his domicile,residence, place of management, place of registration or any other criterion of a similarnature, and also includes that State and any political subdivision or local authority thereof.This term, however, does not include any person who is liable to tax in that State in respectonly 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 bothContracting 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 apermanent home available to him; if he has a permanent home available to him inboth States, he shall be deemed to be a resident only of the State with which hispersonal and economic relations are closer (centre of vital interests);b) if the State in which he has his centre of vital interests cannot be determined, or ifhe has not a permanent home available to him in either State, he shall bedeemed 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 bedeemed to be a resident only of the State of which he is a national;d) if he is a national of both States or of neither of them, the competent authorities ofthe Contracting States shall settle the question by mutual agreement.3. Where by reason of the provisions of paragraph 1 a person other than an individual is aresident of both Contracting States, then it shall be deemed to be a resident only of the Statein which its place of effective management is situated. Article 5PERMANENT ESTABLISHMENT1. For the purposes of this Convention, the term "permanent establishment" means a fixedplace 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 office;d) a factory;e) a workshop, andf) a mine, an oil or gas well, a quarry or any other place of extraction of naturalresources.3. The term “permanent establishment” likewise encompasses:a) a building site, a construction, assembly or installation project or supervisory activitiesin connection therewith, but only where such site, project or activities continue for aperiod of more than 12 months, andb) the furnishing of services, including consultancy services, by an enterprise throughemployees or other personnel engaged by the enterprise for such purpose, but onlywhere activities of that nature continue within the Contracting State for a period orperiods aggregating more than 6 months in any twelve-month period commencing orending in the fiscal year concerned.4. Notwithstanding the preceding provisions of this Article, the term "permanentestablishment" shall be deemed not to include:a) the use of facilities solely for the purpose of storage, display or delivery of goods ormerchandise belonging to the enterprise;b) the maintenance of a stock of goods or merchandise belonging to the enterprise solelyfor the purpose of storage, display or delivery;c) the maintenance of a stock of goods or merchandise belonging to the enterprise solelyfor the purpose of processing by another enterprise;d) the maintenance of fixed place of business solely for the purpose of purchasing goodsor merchandise or of collecting information, for the enterprise;e) the maintenance of a fixed place of business solely for the purpose of carrying on, forthe enterprise, any other activity of a preparatory or auxiliary character;f) the maintenance of a fixed place of business solely for any combination of activitiesmentioned in subparagraphs a) to e), provided that the overall activity of the fixedplace of business resulting from this combination is of a preparatory or auxiliarycharacter.5. Notwithstanding the provisions of paragraphs 1 and 2, where a person − other than anagent of an independent status to whom paragraph 6 applies − is acting on behalf of anenterprise and has, and habitually exercises, in a Contracting State an authority to concludecontracts in the name of the enterprise, that enterprise shall be deemed to have a permanentestablishment in that State in respect of any activities which that person undertakes for theenterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place ofbusiness a permanent establishment under the provisions of that paragraph.6. An enterprise shall not be deemed to have a permanent establishment in a ContractingState merely because it carries on business in that State through a broker, generalcommission agent or any other agent of an independent status, provided that such personsare acting in the ordinary course of their business.7. The fact that a company which is a resident of a Contracting State controls or is controlledby a company which is a resident of the other Contracting State, or which carries onbusiness in that other State (whether through a permanent establishment or otherwise), shallnot of itself constitute either company a permanent establishment of the other. Article 6INCOME FROM IMMOVABLE PROPERTY1.
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