201210.06
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Luxembourg – Russia: Tax Treaty

CONVENTION BETWEEN THE GRAND DUCHY OF LUXEMBOURG AND THE RUSSIAN FEDERATION FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND CAPITAL

Article 1
Personal scope

This Convention shall apply to persons who are residents of one or both of the Contracting States.

Article 2
Taxes covered

1. This Convention shall apply to taxes on income and on capital imposed on behalf of a Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. The existing taxes to which the Convention shall apply are :

(a) in Luxembourg :

(i) the income tax on individuals (l’impôt sur le revenu des personnes physiques);
(ii) the corporation tax (l’impôt sur le revenu des collectivités);
(iii) the tax on fees of directors of companies (l’impôt spécial sur les tantièmes);
(iv) the capital tax (l’impôt sur la fortune);
(v) the communal trade tax based on business profits and capital (l’impôt commercial communal d’après les bénéfices et capital d’exploitation)

(hereinafter referred to as “Luxembourg tax”);

(b) in the Russian Federation :

(i) the profit tax on enterprises and organizations;
(ii) the income tax on banks;
(iii) the income tax on insurance activities;
(iv) the income tax on individuals;
(v) the capital tax on enterprises;
(vi) the capital tax on individuals

(hereinafter referred to as “Russian tax”).

3. The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of important changes which have been made in their respective taxation laws.

Article 3
General definitions

1. For the purposes of this Convention, unless the context otherwise requires :

(a) the term “Contracting State” means the Grand Duchy of Luxembourg (Luxembourg) or the Russian Federation (Russia), as the context requires;
(b) the term “Luxembourg” means the Grand Duchy of Luxembourg; used in a geographical sense the term “Luxembourg” means the territory of the Grand Duchy of Luxembourg;
(c) the term “Russia” means the Russian Federation; used in a geographical sense the term “Russia” includes its territorial sea, the economic zone and the continental shelf in which the Russian Federation may exercise sovereign rights and jurisdiction in accordance with international law and in which the tax legislation of the Russian Federation is in force;
(d) the term “person” includes an individual, a company and any other body of persons;
(e) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes;
(f) the term “international traffic” means any transport by ships, boats or aircraft or any other means of transportation operated by a resident of a Contracting State, except when that transport is operated solely between places in the other Contracting State;
(g) the term “competent authority” means :

(i) in the case of Luxembourg, the Minister of Finance of the Grand Duchy of Luxembourg or his authorized representative;
(ii) in the case of Russia, the Ministry of Finance of the Russian Federation or its authorized representative.

2. As regards the application of this Convention by a Contracting State any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State relating to the taxes to which the Convention applies.

Article 4
Resident

1. For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows :

(a) he shall be deemed to be a resident 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 of the State with which his personal 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 if he has not a permanent home available to him in either State, he shall be deemed to be a resident 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 of the State of which he is a national;
(d) if each Contracting State considers him to be its national or if he is a national of neither of them, the competent authorities of the 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 a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

Article 5
Permanent establishment

1. For the purposes of this Convention, the term “permanent establishment” means a fixed place of business through which the business of a resident of a Contracting State is wholly or partly carried out in the other Contracting State.

2. The term “permanent establishment” includes especially :

(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3. The term “permanent establishment” likewise encompasses a building site, a construction, assembly or installation project, a drilling rig, or a ship used for the exploration for or exploitation of natural resources, or technical supervisory activities related to these works, but only where such site, project or activities are carried on for a period of more than twelve months.

4. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall not include :

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to this resident;
(b) the maintenance of a stock of goods or merchandise belonging to the resident solely for the purpose of storage, display or delivery;
(c) the maintenance of a stock of goods or merchandise belonging to the resident solely for the purpose of processing by another resident;
(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the resident;
(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the resident, any other activity of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs (a) to (e).

5. Notwithstanding the provisions of paragraphs 1 and 2, where a resident of a Contracting State carries on activities in the other Contracting State through an agent, that resident shall be deemed to have a permanent establishment in that State in respect of any activities which the agent undertakes for the resident, if that agent has an authority to conclude contracts in that other State in the name of the resident, habitually exercises that authority and if his activities are not limited to those mentioned in paragraph 4.

6. A resident of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that State through a broker, commission agent or any other agent of an independent status, provided that such persons are 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 controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6
Income from immovable property

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Article 7
Business profits

1. The profits of a resident of a Contracting State shall be taxable only in that State unless the resident carries on business in the other Contracting State through a permanent establishment situated therein. If the resident carries on business as aforesaid, the profits of the resident may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where a resident of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate person engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the resident of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which must be proved and which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the resident.

5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8
Income from international traffic

1. Any income derived by a resident of a Contracting State from the operation of the means of transportation mentioned in paragraph 1 (subparagraph (f)) of Article 3 in international traffic, shall be taxable only in that State.

2. For the purposes of this Convention, income from international traffic shall include income derived from the direct use, leasing or use in any other form of the means of transportation mentioned in paragraph 1 of this Article, including the use, maintenance or leasing of containers and equipment for the transport of containers.

3. The provisions of paragraphs 1 and 2 shall also apply to income from the participation in a pool, a joint business or an international operating agency.

Article 9
Readjustment of profits

1. Where :

(a) a company of a Contracting State participates directly or indirectly in the management, control or capital of a company of the other Contracting State; or
(b) the same persons participate directly or indirectly in the management, control or capital of a company of a Contracting State and a company of the other Contracting State;

and in either case conditions are made or imposed between the two companies in their commercial or financial relations which differ from those which would be made between independent companies, then any income which would, but for those conditions, have accrued to one of the companies, but, by reason of those conditions, have not so accrued, may be included in the income of that company and taxed accordingly.

2. Where a Contracting State includes in the income of a company of that State – and taxes accordingly – income on which a company of the other Contracting State has been charged to tax in that other State and the income so included is the income which would have accrued to the company of the first-mentioned State if the conditions made between the two companies had been those which would have been made between independent companies, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on that income. In determining such adjustment, due regard shall be had to the other provisions of this Convention and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10
Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed :

(a) 10% of the gross amount of the dividends if the beneficial owner holds directly at least 30% of the capital of the company paying the dividends and the price of acquisition of the holding is at least 75,000 ECU or its equivalent amount in the national currencies;
(b) 15% of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting 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 other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

Article 11
Interest

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

2. The term “interest” as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor’s profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article.

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 12
Royalties

1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner of the royalties.

2. The term “royalties” as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films, 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 scientific equipment, or for information concerning industrial, commercial or scientific experience.

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

4. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

Article 13
Capital gains

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which a resident of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

3. Gains from the alienation of means of transportation mentioned in paragraph 1 (subparagraph (f)) of Article 3 operating in international traffic or movable property pertaining to such means, shall be taxable only in the Contracting State of which the alienator is a resident.

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14
Income from independent personal services

1. Income derived by an individual who is a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, the income of such person may, under the following conditions, also be taxed in the other Contracting State :

(a) if he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; or
(b) if he is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days within any period of 12 months.

2. The term “professional services” includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

Article 15
Income from dependent personal services

1. Subject to the provisions of Articles 16, 18 and 19, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if :

(a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned; and
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State; and
(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article :

(a) remuneration derived by a resident of a Contracting State in respect of an employment exercised aboard one of the means of transportation mentioned in paragraph 1 (subparagraph (f)) of Article 3, shall be taxable only in that State;
(b) remuneration derived by a resident of a Contracting State in respect of an employment connected with a place of business in the other Contracting State which does not constitute a permanent establishment under paragraph 3 of Article 5, shall be taxable only in the first-mentioned State;
(c) employment income derived by a resident of a Contracting State in respect of technical services as defined in paragraph 3 of Article 5 performed in the other Contracting State, shall be taxable only in the first-mentioned State, if the services mentioned above form an integral part of the contract.

Article 16
Income received as a member of a board of directors

Directors’ fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors or of a similar body of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 17
Income from artistes and sportsmen

1. Notwithstanding the provisions of Articles 14 and 15, income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

2. Where income in respect of personal activities exercised by an entertainer or 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 Articles 7, 14 and 15, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

3. Notwithstanding the provisions of paragraphs 1 and 2, income derived by artistes or sportsmen in respect of personal activities exercised in a Contracting State shall be exempt from tax in that State if the visit in that State is under an exchange programme between the Contracting States, its subdivisions or local authorities.

Article 18
Pensions

Pensions and other similar remuneration provided by a Contracting State shall be taxable only in that State.

Article 19
Remuneration from government service

1. (a)  Remuneration, other than a pension, paid by a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.
(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who :

(i) is a national of that State; or
(ii) did not become a resident of that State solely for the purpose of rendering the services.

2. Remuneration paid to an individual in respect of an employment service rendered in connection with an enterprise or an organization of a Contracting State which is engaged in business activities shall not be deemed to be remuneration from government services and shall be taxable in accordance with the provisions of Articles 15 and 16 of the Convention.

Article 20
Amounts paid to students, business apprentices, researchers and teachers

Payments which a student, a business apprentice, a researcher or a teacher who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, or for the purpose of research or teaching, receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

Article 21
Other income

1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State.

2. The provisions of paragraph 1 shall not apply to income, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 22
Capital

1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment which a resident of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

3. Capital represented by means of transportation mentioned in paragraph 1 (subparagraph (f)) of Article 3 or containers owned by a resident of a Contracting State and operated in international traffic, as well as other movable property pertaining to the operation thereof, shall be taxable only in that State.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 23
Methods for elimination of double taxation

1. In Luxembourg, double taxation is avoided as follows :

(a) where a resident of Luxembourg derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Russia, Luxembourg shall, subject to the provisions of subparagraphs (b) and (c), exempt such income or capital from tax but may, in calculating tax on the remaining income or capital of that person, apply the rate of tax which would have been applicable if the exempted income or capital had not been so exempted;
(b) where a resident of Luxembourg derives income which, in accordance with the provisions of Article 10, may be taxed in Russia, Luxembourg shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Russia; such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to the income derived from Russia;
(c) where a company which is a resident of Luxembourg derives dividends from Russian sources, Luxembourg shall exempt such dividends from tax, provided that the company which is a resident of Luxembourg holds at least 30% of the capital of the company paying the dividends since the beginning of its accounting year; the above-mentioned shares in the company which is a resident of Russia are, under the same conditions, exempt from the Luxembourg capital tax.

2. In Russia, double taxation is avoided as follows :

where a resident of Russia receives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in Luxembourg, an amount equal to the tax paid on the income or capital in Luxembourg shall be deducted from the tax levied on the income or capital of that resident in Russia. Such deduction shall not, however, exceed the amount of the tax calculated in respect of the income or capital in accordance with the laws of Russia.

Article 24
Non-discrimination

1. A resident of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which a resident of that other State is or may be subjected. This provision shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and deductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

2. The taxation of income and profits which a resident of a Contracting State derives through a permanent establishment situated in the other Contracting State as well as capital represented by property forming part of the business property of this permanent establishment shall not be less favourably levied than the taxation of income, profits and capital of residents of the other State which carry on the same or similar activities under the same conditions.

3. The provisions of this Article shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State fiscal advantages which it grants to residents of some other State under fiscal agreements.

4. The provisions of this Article shall apply to taxes which are the subject of this Convention.

Article 25
Mutual agreement procedure

1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention.

2. The competent authority shall endeavour, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States.

3. The competent authorities of the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention.

4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

Article 26
Exchange of information

1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions.

2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation :

(a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;
(b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State;
(c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy (ordre public).

Article 27
Members of diplomatic missions and consular posts

Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions and consular posts under the general rules of international law or under the provisions of special agreements between the two Contracting States.

Article 28
Previous agreements in force

The provisions of this Convention shall not affect the fiscal provisions laid down in agreements previously signed between the Contracting States. Where, however, this Convention provides for a more advantageous tax treatment, than this Convention shall be applied.

Article 29
Exclusion of certain companies

This Convention shall not apply to holding companies (sociétés holding) within the meaning of special Luxembourg laws, currently the Act (loi) of 31 July 1929 and the Decree (l’arrêté grand-ducal) of 17 December 1938 or to companies subject to a similar fiscal law in Luxembourg. Nor shall it apply to income derived from such companies by a resident of Russia or to shares or other rights in such companies owned by such a person.

Article 30
Entry into force

1. This Convention shall be ratified and the instruments of ratification shall be exchanged as soon as possible.

2. The Convention shall enter into force upon the exchange of instruments of ratification and its provisions shall have effect :

(a) in respect of taxes withheld at the source, to income paid or payable on or after the first day of January of the year next following that of the entry into force of the Convention;
(b) in respect of other taxes, to taxable periods beginning on or after the first day of January of the year next following that of the entry into force of the Convention.

Article 31
Termination

This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice of termination at least six months before the end of any calendar year. In such event, the Convention shall cease to have effect :

(a) in respect of taxes withheld at the source, to income paid or payable on or after the first day of January next following that in which the notice of termination is given; and
(b) in respect of other taxes, to taxable periods beginning after 31 December of the year in which the notice of termination is given.

In witness whereof the undersigned, being duly authorized thereto, have signed this Convention.

Done at Moscow, this 28th day of June 1993, in duplicate in both the French and Russian languages, the two texts being equally authentic.


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