The Double Taxation Relief (Taxes on Income) (Bolivia) Order 1995

• Citation: S.I. 1995/2707
• Sections: 10

Section 1

This Order may be cited as the Double Taxation Relief (Taxes on Income) (Bolivia) Order 1995.

Section 2

It is hereby declared—

(a) that the arrangements specified in the Convention set out in Part I of the Schedule to this Order and in the Exchange of Notes constituting an Agreement set out in Part II of that Schedule have been made with the Government of the Republic of Bolivia with a view to affording relief from double taxation in relation to income tax, corporation tax or capital gains tax and taxes of a similar character imposed by the laws of Bolivia;

(b) that those arrangements include provisions with respect to the exchange of information necessary for carrying out the domestic laws of the United Kingdom and the laws of Bolivia concerning taxes covered by the arrangements including, in particular, provisions about the prevention of fiscal evasion with respect to those taxes; and

(c) that it is expedient that those arrangements should have effect.

Section 1

The Contracting States declare:

This Convention shall not be opposed to the respective tax systems of the Contracting States and in particular to the Bolivian tax system based on source and to the United Kingdom tax system based on residence and worldwide income.

Section 1

The Contracting States declare:

This Convention shall not be opposed to the respective tax systems of the Contracting States and in particular to the Bolivian tax system based on source and to the United Kingdom tax system based on residence and worldwide income.

Section 2

With respect to Article 7:

(a) There may only be attributed to a building site or construction or installation project in the Contracting State in which the permanent establishment is situated, the profits which are derived from such activities. Profits derived as a result of supplies of merchandise from the main permanent establishment or from another permanent establishment of the enterprise or a third person in connection with such activities or realised independently of such activities, shall not be attributed to the building site or construction or installation project;

(b) Income derived as a result of planning, design, construction or research activities and technical services carried out in a Contracting State by a resident of that State in connection with a permanent establishment maintained in the other Contracting State shall not be attributed to that establishment.

Section 2

With respect to Article 7:

(a) There may only be attributed to a building site or construction or installation project in the Contracting State in which the permanent establishment is situated, the profits which are derived from such activities. Profits derived as a result of supplies of merchandise from the main permanent establishment or from another permanent establishment of the enterprise or a third person in connection with such activities or realised independently of such activities, shall not be attributed to the building site or construction or installation project;

(b) Income derived as a result of planning, design, construction or research activities and technical services carried out in a Contracting State by a resident of that State in connection with a permanent establishment maintained in the other Contracting State shall not be attributed to that establishment.

Section 3

With respect to Article 11:

It is assumed that the commission paid by a resident of Bolivia to a bank or other credit institution in relation to services provided by the bank or credit institution shall be regarded as interest in accordance with paragraph (3) of Article 11.

Section 3

With respect to Article 11:

It is assumed that the commission paid by a resident of Bolivia to a bank or other credit institution in relation to services provided by the bank or credit institution shall be regarded as interest in accordance with paragraph (3) of Article 11.

Section 4

With respect to Articles 10, 11 and 12:

(a) If the rates under the respective national law are lower than the rates determined in the Convention, the lower rates of the national legislation will apply, without affecting any future rulings.

(b) If Bolivia has agreed in a Convention for the elimination of double taxation in force between it and any other member country of the Organisation for Economic Co-operation and Development to apply a lower rate of taxation to dividends, interest or royalties than that specified in Articles 10, 11 and 12 respectively, that lower rate shall be substituted for the rate specified in those Articles with effect from the date when that Convention enters into force.

Section 4

With respect to Articles 10, 11 and 12:

(a) If the rates under the respective national law are lower than the rates determined in the Convention, the lower rates of the national legislation will apply, without affecting any future rulings.

(b) If Bolivia has agreed in a Convention for the elimination of double taxation in force between it and any other member country of the Organisation for Economic Co-operation and Development to apply a lower rate of taxation to dividends, interest or royalties than that specified in Articles 10, 11 and 12 respectively, that lower rate shall be substituted for the rate specified in those Articles with effect from the date when that Convention enters into force.