THE REPUBLIC
LITHUANIA AND THE GOVERNMENT
THE UNITED KINGDOM
GREAT BRITAIN AND NORTHERN IRELAND FOR THE AVOIDANCE
DOUBLE TAXATION AND THE PREVENTION
FISCAL EVASION WITH RESPECT TO TAXES ON INCOME AND ON CAPITAL GAINS The Government
the Republic
Lithuania and the Government
the United Kingdom
Great Britain and Northern Ireland; Desiring to conclude a Convention for the avoidance
double taxation and the prevention
fiscal evasion with respect to taxes on income and on capital gains; Have agreed as follows: ARTICLE 1 Personal scope This Convention shall apply to persons who are residents
one or both
the Contracting States. ARTICLE 2 Taxes covered
a Contracting State or
its political subdivisions or local authorities, irrespective
the manner in which they are levied.
income including taxes on gains from the alienation
movable or immovable property.
Lithuania: (i) the tax on profits
legal persons (juridiniu asmenu pelno mokestis); and (ii) the tax on income
natural persons (fiziniu asmenu pajamu mokestis); (hereinafter referred to as "Lithuanian tax"); (b) in the case
the United Kingdom: (
signature
this Convention in addition to, or in place
, the existing taxes. The competent authorities
the Contracting States shall notify each other
any substantial changes which have been made in their respective taxation laws. ARTICLE 3 General definitions
this Convention, unless the context otherwise requires: (a) the term "Lithuania" means the Republic
Lithuania and, when used in the geographical sense, means the territory
the Republic
Lithuania and any other area adjacent to the territorial waters
the Republic
Lithuania within which, under the laws
the Republic
Lithuania and in accordance with international law, the rights
Lithuania may be exercised with respect to the sea bed and its sub-soil and their natural resources; (b) the term "United Kingdom" means Great Britain and Northern Ireland, including any area outside the territorial sea
the United Kingdom which in accordance with international law has been or may hereafter be designated, under the laws
the United Kingdom concerning the Continental Shelf, as an area within which the rights
the United Kingdom with respect to the sea bed and sub-soil and their natural resources may be exercised; (
the Republic
Lithuania; and any legal person, partnership, association or other entity deriving its status as such from the laws in force in the Republic
Lithuania; (ii) in relation to the United Kingdom, any British citizen, or any British subject not possessing the citizenship
any other Commonwealth country or territory, provided he has the right
abode in the United Kingdom; and any legal person, partnership, association or other entity deriving its status as such from the law in force in the United Kingdom; (
persons, but subject to paragraph
this Article does not include a partnership; (
a Contracting State" and "enterprise
the other Contracting State" mean respectively an enterprise carried on by a resident
a Contracting State and an enterprise carried on by a resident
the other Contracting State; (h) the term "international traffic" means any transport by a ship or aircraft operated by an enterprise
a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State; (i) the term "competent authority" means: (i) in the case
Lithuania, the Minister
Finance or his authorised representative; and (ii) in the case
the United Kingdom, the Commissioners
Inland Revenue or their authorised representative.
Lithuania shall be treated as a person for the purposes
this Convention.
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
that Contracting State concerning the taxes to which the Convention applies. ARTICLE 4 Residence
this Convention, the term "resident
a Contracting State" means any person who, under the laws
that State, is liable to tax therein by reason
his domicile, residence, place
management, place
incorporation or any other criterion
a similar nature; the term does not include any person who is liable to tax in that Contracting State in respect only
income or capital gains from sources situated therein.
the provisions
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this Article an individual is a resident
both Contracting States, then his status shall be determined in accordance with the following rules: (a) he shall be deemed to be a resident
the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident
the Contracting State with which his personal and economic relations are closer (centre
vital interests); (b) if the Contracting State in which he has his centre
vital interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident
the Contracting State in which he has an habitual abode; (c) if he has an habitual abode in both Contracting States or in neither
them, he shall be deemed to be a resident
the Contracting State
which he is a national; (d) if he is a national
both Contracting States or
neither
them, the competent authorities
the Contracting States shall settle the question by mutual agreement.
the provisions
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this Article a person other than an individual is a resident
both Contracting States, the competent authorities
the Contracting States shall endeavour to settle the question by mutual agreement. In the absence
such agreement, for the purposes
the Convention, the person shall not be entitled to claim any relief or exemption from tax provided by this Convention. ARTICLE 5 Permanent establishment
this Convention, the term "permanent establishment" means a fixed place
business through which the business
an enterprise is wholly or partly carried on.
management; (
fice; (
extraction
natural resources.
more than six months.
this Article, the term "permanent establishment" shall be deemed not to include: (a) the use
facilities solely for the purpose
storage, display or delivery
goods or merchandise belonging to the enterprise; (b) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
storage, display or delivery; (c) the maintenance
a stock
goods or merchandise belonging to the enterprise solely for the purpose
processing by another enterprise; (d) the maintenance
a fixed place
business solely for the purpose
purchasing goods or merchandise, or
collecting information, for the enterprise; (e) the maintenance
a fixed place
business solely for the purpose
carrying on, for the enterprise, any other activity
a preparatory or auxiliary character; (f) the maintenance
a fixed place
business solely for any combination
activities mentioned in sub-paragraphs (a) to (e)
this paragraph, provided that the overall activity
the fixed place
business resulting from this combination is
a preparatory or auxiliary character.
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this Article, where a person - other than an agent
an independent status to whom paragraph
this Article applies - is acting on behalf
an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts on behalf
the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect
any activities which that person undertakes for the enterprise, unless the activities
such person are limited to those mentioned in paragraph
this Article which, if exercised through a fixed place
business, would not make this fixed place
business a permanent establishment under the provisions
that paragraph.
an independent status, provided that such persons are acting in the ordinary course
their business. However, when the activities
such an agent are devoted wholly or almost wholly on behalf
that enterprise, he will not be considered an agent
an independent status within the meaning
this paragraph.
a Contracting State controls or is controlled by a company which is a resident
the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not
itself constitute either company a permanent establishment
the other. ARTICLE 6 Income from immovable property
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.
the Contracting State in which the property in question is situated. For the purposes
this Convention property accessory to immovable property, in particular buildings, livestock and equipment used in agriculture and forestry, rights to which the provisions
general law respecting landed property apply, in particular any options or similar right to acquire immovable property, usufruct
immovable property and rights to variable or fixed payments as consideration for the working
, or the right to work, mineral deposits, sources and other natural resources shall also be treated as immovable property; ships and aircraft shall not be regarded as immovable property.
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this Article shall apply to income derived from the direct use, letting, or use in any other form
immovable property.
shares or other corporate rights in a company entitles the owner
such shares or corporate rights to the enjoyment
immovable property held by the company, the income from the direct use, letting, or use in any other form
such right to enjoyment may be taxed in the Contracting State in which the immovable property is situated.
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this Article shall also apply to the income from immovable property
an enterprise and to income from immovable property used for the performance
independent personal services. ARTICLE 7 Business profits
an enterprise
a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits
the enterprise may be taxed in the other State but only so much
them as is attributable to that permanent establishment.
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this Article, where an enterprise
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 enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise
which it is a permanent establishment.
a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes
the permanent establishment, including executive and general administrative expenses so incurred, whether in the Contracting State in which the permanent establishment is situated or elsewhere.
the mere purchase by that permanent establishment
goods or merchandise for the enterprise.
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.
income or capital gains which are dealt with separately in other Articles
this Convention, then the provisions
those Articles shall not be affected by the provisions
this Article. ARTICLE 8 Shipping and air transport
an enterprise
a Contracting State from the operation
ships or aircraft in international traffic shall be taxable only in that State.
this Article, profits
an enterprise from the operation
ships or aircraft in international traffic include: (a) profits from the rental on a bareboat basis
ships or aircraft; and (b) profits from the use, maintenance or rental
containers (including trailers and related equipment for the transport
containers) used for the transport
goods or merchandise; where such rental or such use, maintenance or rental, as the case may be, is incidental to the operation
ships or aircraft by the enterprise in international traffic.
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this Article shall also apply to profits from the participation in a pool, a joint business or an international operating agency, but only to so much
the profits so derived as is attributable to the participant in proportion to its share in the joint operation. ARTICLE 9 Associated enterprises
a Contracting State participates directly or indirectly in the management, control or capital
an enterprise
the other Contracting State; or (b) the same persons participate directly or indirectly in the management, control or capital
an enterprise
a Contracting State and an enterprise
the other Contracting State; and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one
the enterprises, but, by reason
those conditions, have not so accrued, may be included in the profits
that enterprise and taxed accordingly.
an enterprise
that State - and taxes accordingly - profits on which an enterprise
the other Contracting State has been charged to tax in that other State and the profits so included are profits which would have accrued to the enterprise
the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount
the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions
this Convention and the competent authorities
the Contracting States shall if necessary consult each other. ARTICLE 10 Dividends
a Contracting State to a resident
the other Contracting State may be taxed in that other State.
which the company paying the dividends is a resident and according to the laws
that State, but if the recipient is the beneficial owner
the dividends the tax so charged shall not exceed: (a) 5 per cent
the gross amount
the dividends if the beneficial owner is a company which controls directly at least 25 per cent
the voting power in the company paying the dividends; (b) 15 per cent
the gross amount
the dividends in all other cases. This paragraph shall not affect the taxation
the company in respect
the profits out
which the dividends are paid.
the State
which the company making the distribution is a resident and also includes any other item which, under the laws
the Contracting State
which the company paying the dividend is a resident, is treated as a dividend or distribution
a company.
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this Article shall not apply if the beneficial owner
the dividends, being a resident
a Contracting State, carries on business in the other Contracting State
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
which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
or Article 14
this Convention, as the case may be, shall apply.
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
that other State or insofar as the holding in respect
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
profits or income arising in that other State.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or assignment
the shares or other rights in respect
which the dividend is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 11 Interest
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the interest, the tax so charged shall not exceed 10 per cent
the gross amount
the interest.
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this Article interest arising in a Contracting State and paid to a resident
the other Contracting State shall be taxable only in that other State if such resident is the beneficial owner
the interest and: (a) the payer or the recipient
the interest is the Government
a Contracting State, a political subdivision or a local authority thereof or an agency or instrumentality
that Government, political subdivision or local authority; (b) the interest is paid in respect
a loan made, guaranteed or insured, or any other debt-claim or credit guaranteed or insured, by the United Kingdom Export Credits Guarantee Department or by any organisation established in either Contracting State after the date
signature
this Convention which is
a similar nature (the competent authorities
the Contracting States shall by mutual agreement determine whether such organisations are
a similar nature); (c) the interest is paid in respect
a loan made, guaranteed or insured by the Bank
England or the Bank
Lithuania (Lietuvos Bankas); or (d) the interest is paid in respect
an indebtedness arising on the sale on credit, by an enterprise
the other Contracting State,
industrial, commercial or scientific equipment to an enterprise
the first-mentioned State, except where the sale or indebtedness is between related persons.
every kind, whether or not secured by mortgage, and in the case
the United Kingdom 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. The term interest shall not include any item which is treated as a dividend under the provisions
this Convention.
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this Article shall not apply if the beneficial owner
the interest, being a resident
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
which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
or Article 14
this Convention, as the case may be, shall apply.
that State. Where, however, the person paying the interest, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
them and some other person, the amount
the interest paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount
interest. In such case, the excess part
the payments shall remain taxable according to the laws
each Contracting State, due regard being had to the other provisions
this Convention.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or assignment
the debt-claim in respect
which the interest is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 12 Royalties
the other Contracting State may be taxed in that other State.
that State, but if the recipient is the beneficial owner
the royalties, the tax so charged shall not exceed: (a) 5 per cent
the gross amount
royalties that are for the use
industrial, commercial or scientific equipment; (b) 10 per cent
the gross amount
royalties other than those referred to in sub-paragraph (a).
any kind received as a consideration for the use
, or the right to use, any copyright
literary, artistic or scientific work (including cinematograph films, and films or tapes for television or radio broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use
, or the right to use, industrial, commercial, or scientific equipment, or for information (know-how) concerning industrial, commercial or scientific experience.
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this Article shall not apply if the beneficial owner
royalties, being a resident
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
which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
or Article 14
this Convention, as the case may be, shall apply.
that State. Where, however, the person paying the royalties, whether he is a resident
a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
a special relationship between the payer and the beneficial owner or between both
them and some other person, the amount
the royalties paid exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence
such relationship, the provisions
this Article shall apply only to the last-mentioned amount. In such case, the excess part
the payments shall remain taxable according to the laws
each Contracting State, due regard being had to the other provisions
this Convention.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or assignment
the rights in respect
which the royalties are paid to take advantage
this Article by means
that creation or assignment. ARTICLE 13 Capital gains
a Contracting State from the alienation
immovable property referred to in Article 6
this Convention and situated in the other Contracting State may be taxed in that other State.
a Contracting State from the alienation
: (a) shares, other than shares quoted on an approved Stock Exchange, deriving their value or the greater part
their value directly or indirectly from immovable property situated in the other Contracting State, or (b) an interest in a partnership or trust the assets
which consist principally
immovable property situated in the other Contracting State, or
shares referred to in sub-paragraph (a) above, may be taxed in that other State.
movable property forming part
the business property
a permanent establishment which an enterprise
a Contracting State has in the other Contracting State or
movable property pertaining to a fixed base available to a resident
a Contracting State in the other Contracting State for the purpose
performing independent personal services, including such gains from the alienation
such a permanent establishment (alone or with the whole enterprise) or
such fixed base, may be taxed in that other State.
a Contracting State from the alienation
ships or aircraft operated in international traffic by that enterprise or movable property pertaining to the operation
such ships or aircraft, shall be taxable only in that Contracting State.
any property other than that referred to in paragraphs
this Article shall be taxable only in the Contracting State
which the alienator is a resident.
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this Article shall not affect the right
a Contracting State to levy according to its law a tax on capital gains from the alienation
any property derived by an individual who is a resident
the other Contracting State and has been a resident
the first-mentioned Contracting State at any time during the five years immediately preceding the alienation
the property. ARTICLE 14 Independent personal services
a Contracting State in respect
professional services or other activities
an independent character shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose
performing his activities. If he has such a fixed base, the income may be taxed in the other State, but only so much
the income as is attributable to that fixed base. For this purpose, where a resident
a Contracting State is present in the other Contracting State for a period or periods exceeding in the aggregate 183 days in any twelve month period commencing or ending in any fiscal year, he shall be deemed for that fiscal year to have a fixed base regularly available to him in that other State and the income that is derived from his activities referred to above that are performed in that other State shall be attributable to that deemed fixed base.
physicians, lawyers, engineers, architects, dentists and accountants. ARTICLE 15 Dependent personal services
Articles 16, 18, 19, 20 and 21
this Convention, salaries, wages and other similar remuneration derived by a resident
a Contracting State in respect
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.
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this Article, remuneration derived by a resident
a Contracting State in respect
an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: (
, an employer who is not a resident
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.
this Article, remuneration derived in respect
an employment exercised aboard a ship or aircraft operated in international traffic by an enterprise
a Contracting State may be taxed in that State. ARTICLE 16 Directors' fees Directors' fees and other similar payments derived by a resident
a Contracting State in his capacity as a member
the board
directors or any other similar organ
a company which is a resident
the other Contracting State may be taxed in that other State. ARTICLE 17 Artistes and sportsmen
and Article 15
this Convention, income derived by a resident
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.
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
Articles 7, 14 and 15
this Convention, be taxed in the Contracting State in which the activities
the entertainer or sportsman are exercised.
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the other Contracting State, or a political subdivision or local authority thereof. In such case, the income shall be taxable only in the Contracting State
which the entertainer or sportsman is a resident. ARTICLE 18 Pensions
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this Convention, pensions and other similar remuneration paid in consideration
past employment to a resident
a Contracting State and any annuity paid to such a resident shall be taxable only in that State.
time under an obligation to make the payments in return for adequate and full consideration in money or money's worth. ARTICLE 19 Government Service
services rendered to that State, subdivision, authority, agency or entity shall be taxable only in that State. (b) Notwithstanding the provisions
sub-paragraph (a)
this paragraph, 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
that State who: (i) is a national
that State; or (ii) did not become a resident
that State solely for the purpose
rendering the services.
funds created by, a Contracting State or a political subdivision or a local authority thereof or an agency thereof or an entity wholly owned by such State, subdivision or authority to an individual in respect
services rendered to that State, subdivision, authority, agency or entity shall be taxable only in that State. (b) Notwithstanding the provisions
sub-paragraph (a)
this paragraph, such pension shall be taxable only in the other Contracting State if the individual is a resident
and a national
that State.
Articles 15, 16 and 18
this Convention shall apply to remuneration and pensions in respect
services rendered in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof or an agency thereof or an entity wholly owned by such State, subdivision or authority. ARTICLE 20 Students Payments which a student or an apprentice or trainee, who is or was immediately before visiting a Contracting State a resident
the other Contracting State and who is present in the first-mentioned State solely for the purpose
his education or training receives for the purpose
his maintenance, education or training shall not be taxed in the first-mentioned State, provided that such payments arise from sources outside that State. ARTICLE 21 Professors and teachers
teaching or engaging in research at a university, college or other recognised educational institution in that Contracting State, and who is or was immediately before that visit a resident
the other Contracting State, shall not be taxed by the first-mentioned Contracting State on remuneration for such teaching or research for a period not exceeding two years from the date
his first visit to that State for such purpose.
some other private person or persons. ARTICLE 22 Other income
income beneficially owned by a resident
a Contracting State, wherever arising, which are not dealt with in the foregoing Articles
this Convention, other than income paid out
trusts or the estates
deceased persons in the course
administration, shall be taxable only in that State.
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this Article shall not apply to income, other than income from immovable property as defined in paragraph
this Convention, if the recipient
such income, being a resident
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
which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions
or Article 14
this Convention, as the case may be, shall apply.
a special relationship between the person referred to in paragraph
this Article and some other person, or between both
them and some third person, the amount
the income referred to in that paragraph exceeds the amount (if any) which would have been agreed upon between them in the absence
such a relationship, the provisions
this Article shall apply only to the last-mentioned amount. In such a case, the excess part
the income shall remain taxable according to the laws
each Contracting State, due regard being had to the other applicable provisions
this Convention.
this Article shall not apply if it was the main purpose or one
the main purposes
any person concerned with the creation or assignment
the rights in respect
which the income is paid to take advantage
this Article by means
that creation or assignment. ARTICLE 23 Miscellaneous rules applicable to certain
fshore Activities
this Article shall apply notwithstanding any other provision
this Convention.
fshore activities" means activities which are carried on
fshore in a Contracting State in connection with the exploration or exploitation
the sea bed and sub-soil and their natural resources situated in that Contracting State.
a Contracting State which carries on
fshore activities in the other Contracting State shall, subject to paragraphs
this Article, be deemed to be carrying on a business in that other Contracting State through a permanent establishment situated therein.
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this Article shall not apply where the
fshore activities are carried on in the other Contracting State for a period or periods not exceeding in the aggregate thirty days in any twelve month period. For the purpose
this paragraph: (a) where an enterprise
a Contracting State carrying on
fshore activities in the other Contracting State is associated with another enterprise carrying on substantially similar
fshore activities there, the former enterprise shall be deemed to be carrying on all such activities
the latter enterprise, except to the extent that those activities are carried on at the same time as its own activities; (b) an enterprise shall be regarded as associated with another enterprise if one participates directly or indirectly in the management, control or capital
the other or if the same persons participate directly or indirectly in the management, control or capital
both enterprises.
this Article profits derived by an enterprise
a Contracting State from the operation, in connection with
fshore activities carried on in the other Contracting State,
ships or aircraft which are in their existing state designed primarily for the purpose
transporting supplies or personnel, or
tug-boats or anchor handling vessels, shall be taxable only in the State
which the enterprise is a resident.
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this Article shall not apply to profits derived during any period in which: (a) such a ship or aircraft is contracted to be used mainly for purposes other than those
transporting supplies or personnel to or between places where
fshore activities are being carried on; or (b) a tug-boat is contracted to be used for a purpose other than that
towing; or (c) an anchor handling vessel is contracted to be used for a purpose other than that
anchor handling.
a Contracting State who carries on
fshore activities in the other Contracting State, consisting
professional services or other activities
an independent character shall be deemed to be performing those activities from a fixed base in that other State.
a Contracting State in respect
an employment connected with
fshore activities in the other Contracting State may, to the extent that the duties are performed
fshore in that other State, be taxed in that other Contracting State.
a Contracting State from the alienation
: (
the sea bed and sub-soil and their natural resources situated in that other State; or (c) shares deriving their value or the greater part
their value directly or indirectly from such rights or such property or from such rights and such property taken together may be taxed in that other State. In this paragraph the term "exploration or exploitation rights" means rights to assets to be produced by the exploration or exploitation
the sea bed and sub-soil and their natural resources in the other Contracting State, including rights to interest in or to the benefit
such assets. ARTICLE 24 Elimination
double taxation
Lithuania derives income or capital gains which in accordance with this Convention, may be taxed in the United Kingdom, unless a more favourable treatment is provided in its domestic law, Lithuania shall allow as a deduction from the tax on the income
that resident, an amount equal to the United Kingdom income tax, corporation tax or capital gains tax paid thereon in the United Kingdom. Such deduction shall not, however, exceed that part
the tax in Lithuania as computed before the deduction is given, which is attributable as the case may be, to the income or capital gains which may be taxed in the United Kingdom. (b) For the purpose
sub-paragraph (a)
this paragraph, where a company that is a resident
Lithuania receives a dividend from a company that is a resident
the United Kingdom in which it owns at least 10 per cent
its shares having full voting rights, the tax paid in the United Kingdom shall include not only the tax paid on the dividend, but also the tax paid on the underlying profits
the company out
which the dividend was paid.
the law
the United Kingdom regarding the allowance as a credit against United Kingdom tax
tax payable in a territory outside the United Kingdom (which shall not affect the general principle hereof): (a) Lithuanian tax payable under the laws
Lithuania and in accordance with this Convention, whether directly or by deduction, on profits, income or chargeable gains from sources within Lithuania (excluding in the case
a dividend, tax payable in Lithuania in respect
the profits out
which the dividend is paid) shall be allowed as a credit against any United Kingdom tax computed by reference to the same profits, income or chargeable gains by reference to which the Lithuania tax is computed; (b) in the case
a dividend paid by a company which is a resident
Lithuania to a company which is a resident
the United Kingdom and which controls directly or indirectly at least 10 per cent
the voting power in the company paying the dividend, the credit shall take into account (in addition to any Lithuanian tax for which credit may be allowed under the provisions
sub-paragraph (a)
this paragraph) the Lithuanian tax payable by the company in respect
the profits out
which such dividend is paid.
paragraphs
this Article, profits, income and capital gains owned by a resident
a Contracting State which may be taxed in the other Contracting State in accordance with this Convention, shall be deemed to arise from sources in that other Contracting State. ARTICLE 25 Limitation
relief
this Convention any income is relieved from tax in a Contracting State and, under the law in force in the other Contracting State a person, in respect
that income, is subject to tax by reference to the amount thereof which is remitted to or received in that other Contracting State and not by reference to the full amount thereof, then the relief to be allowed under this Convention in the first-mentioned Contracting State shall apply only to so much
the income as is taxed in the other Contracting State.
any other Article
this Convention, a resident
a Contracting State who, as a consequence
domestic law concerning incentives to promote foreign investment, is not subject to tax or is subject to tax at a reduced rate in that Contracting State on income or capital gains, shall not receive the benefit
any reduction in or exemption from tax provided for in this Convention by the other Contracting State if the main purpose or one
the main purposes
such resident or a person connected with such resident was to obtain the benefits
this Convention. ARTICLE 26 Partnerships Where, under any provision
this Convention, a partnership is entitled, as a resident
Lithuania, to exemption from tax in the United Kingdom on any income or capital gains, that provision shall not be construed as restricting the right
the United Kingdom to tax any member
the partnership who is a resident
the United Kingdom on his share
such income or capital gains; but any such income or capital gains shall be treated for the purposes
this Convention as income or gains from sources in Lithuania. ARTICLE 27 Non-discrimination
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 nationals
that other State in the same circumstances are or may be subjected.
a Contracting State shall not be subjected in either Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals
the State concerned in the same circumstances are or may be subjected.
a Contracting State has in the other Contracting State shall not be less favourably levied in that other State than the taxation levied on enterprises
that other State carrying on the same activities.
paragraph
this Convention apply, interest, royalties and other disbursements paid by an enterprise
a Contracting State to a resident
the other Contracting State shall, for the purpose
determining the taxable profits
such enterprise, be deductible under the same conditions as if they had been paid to a resident
the first-mentioned State.
a Contracting State, the capital
which is wholly or partly owned or controlled, directly or indirectly, by one or more residents
the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises
the first-mentioned State are or may be subjected.
the personal allowances, reliefs and reductions for tax purposes which are granted to individuals so resident.
this Article shall apply to the taxes which are the subject
this Convention. ARTICLE 28 Mutual agreement procedure
a Contracting State considers that the actions
one or both
the Contracting States result or will result for him in taxation not in accordance with the provisions
this Convention, he may, irrespective
the remedies provided by the domestic law
those States, present his case to the competent authority
the Contracting State
which he is a resident or, if his case comes under paragraph
this Convention, to that
the Contracting State
which he is a national.
the other Contracting State, with a view to the avoidance
taxation which is not in accordance with the Convention.
the Contracting States shall endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application
the Convention.
the Contracting States may communicate with each other directly for the purpose
reaching an agreement in the sense
the preceding paragraphs. ARTICLE 29 Exchange
information
the Contracting States shall exchange such information as is necessary for carrying out the provisions
this Convention or
the domestic laws
the Contracting States concerning taxes covered by this Convention insofar as the taxation thereunder is not contrary to this Convention, in particular, to prevent fraud and to facilitate the administration
statutory provisions against legal avoidance. The exchange
information is not restricted by Article 1
this Convention. Any information received by a Contracting State shall be treated as secret and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection
, the enforcement or prosecution in respect
, or the determination
appeals in relation to, the taxes covered by this 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.
paragraph
this Article be construed so as to impose on the competent authority
either Contracting State the obligation: (a) to carry out administrative measures at variance with the laws and administrative practice
that or
the other Contracting State; (b) to supply information which is not obtainable under the laws or in the normal course
the administration
that or
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
which would be contrary to public policy. ARTICLE 30 Members
diplomatic or permanent missions and consular posts Nothing in this Convention shall affect the fiscal privileges accorded to members
diplomatic or permanent missions or consular posts under the general rules
international law or under the provisions
special agreements. ARTICLE 31 Entry into force The Governments
each
the Contracting States shall notify to the other through diplomatic channels the completion
the procedures required by law for the bringing into force
this Convention. This Convention shall enter into force on the date
the later
these notifications and shall thereupon have effect: (a) in Lithuania: (i) in respect
taxes withheld at source, on income derived on or after the first day
January in the calendar year next following the year in which the Convention enters into force; (ii) in respect
other taxes, for taxes chargeable for any tax year beginning on or after the first day
January in the calendar year next following the year in which the Convention enters into force; (b) in the United Kingdom: (i) in respect
income tax and capital gains tax, for any year
assessment beginning on or after 6th April in the calendar year next following that in which the Convention enters into force; (ii) in respect
corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the Convention enters into force. ARTICLE 32 Termination This Convention shall remain in force until terminated by one
the Contracting States. Either Contracting State may terminate the Convention, through diplomatic channels, by giving notice
termination at least six months before the end
any calendar year. In such event, the Convention shall cease to have effect: (a) in Lithuania: (i) in respect
taxes withheld at source, on income derived on or after the first day
January in the calendar year next following the year in which the notice is given; (ii) in respect
other taxes, for taxes chargeable for any tax year beginning on or after the first day
January in the calendar year next following the year in which the notice is given; (b) in the United Kingdom: (i) in respect
income tax and capital gains tax, for any year
assessment beginning on or after 6th April in the calendar year next following that in which the notice is given; (ii) in respect
corporation tax, for any financial year beginning on or after 1st April in the calendar year next following that in which the notice is given. In witness whereof the undersigned, duly authorised thereto, have signed this Convention. Done in duplicate at Vilnius this 19 day
March 2001 in the Lithuanian and the English languages, both texts being equally authentic. For the Government
For the Government
the Republic
Lithuania the United Kingdom
Great Britain and Northern Ireland EXCHANGE
NOTES Excellency Vilnius 19 March 2001 I have the honour to refer to the Convention between the Government
the United Kingdom
Great Britain and Northern Ireland and the Government
the Republic
Lithuania for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with respect to Taxes on Income and Capital Gains which has been signed today and to make on behalf
the Government
the United Kingdom
Great Britain and Northern Ireland the following proposals for the purpose
applying: 1. Article 2
the fact that the existing taxes as listed in the Convention are subject to a substantial programme
reform and wherever it is not possible to agree that a particular new tax satisfies the conditions
paragraph
this Article the United Kingdom is ready to negotiate an amending Protocol to the Convention without delay. 2. Article 4
both Contracting States and the competent authorities
the Contracting States endeavour to determine its status by mutual agreement, they shall have regard to such factors as the place
effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. 3. Article 5
paragraph
the agent not been devoted wholly or almost wholly on behalf
the enterprise; and (ii) in considering whether the activities are devoted wholly or almost wholly on behalf
that enterprise, the Contracting States shall have regard to any relevant factors during any 12 month period commencing or ending in the fiscal year concerned. In particular, if the relevant activities are devoted wholly or almost wholly on behalf
that enterprise for a period exceeding 9 months within that period
12 months, they will be considered to have been so devoted in that fiscal year. 4. Article 6
immovable property in a Contracting State may be taxed in that Contracting State in accordance with Article 13
this Convention. 5. Article 7
a permanent establishment, it is understood that expenses to be allowed as deductions by a Contracting State include only expenses that are deductible under the domestic laws
that State. 6. Article 12 The Contracting States agree that where Lithuania agrees to a lower rate
tax than 5 per cent in respect
the royalties specified in paragraph
or 10 per cent in respect
any other royalties in any Convention between Lithuania and a third State which is a member
the Organisation for Economic Co-operation and Development at the date
signature
this Convention, and that Convention enters into force either before or after the date
entry into force
this Convention, the competent authority
Lithuania shall notify the competent authority
the United Kingdom
the terms
the relevant paragraph in the Convention with that third State immediately after the entry into force
that Convention and such lower rate
tax shall be substituted in Article 12
this Convention for 5 per cent in respect
the royalties specified in paragraph
any other royalties with effect from the date
entry into force
that Convention, or
this Convention, whichever is the later. 7. Article 25
the Republic
Lithuania, I have the honour to suggest that the present Note and Your Excellency’s reply to that effect should be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the entry into force
the Convention. I take this opportunity to renew to Your Excellency the assurance
my highest consideration. Excellency Vilnius 19 March 2001 I am in receipt
your note dated 19 March 2001 which states as follows: “Excellency I have the honour to refer to the Convention between the Government
the United Kingdom
the Great Britain and Northern Ireland and the Government
the Republic
Lithuania for the Avoidance
Double Taxation and the Prevention
Fiscal Evasion with respect to Taxes on Income and Capital Gains which has been signed today and to make on behalf
the Government
the United Kingdom
Great Britain and Northern Ireland the following proposals for the purpose
applying: 1. Article 2
the fact that the existing taxes as listed in the Convention are subject to a substantial programme
reform and wherever it is not possible to agree that a particular new tax satisfies the conditions
paragraph
this Article the United Kingdom is ready to negotiate an amending Protocol to the Convention without delay. 2. Article 4
both Contracting States and the competent authorities
the Contracting States endeavour to determine its status by a mutual agreement, they shall have regard to such factors as the place
effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. 3. Article 5
paragraph
the agent not been devoted wholly or almost wholly on behalf
the enterprise; and (ii) in considering whether the activities are devoted wholly or almost wholly on behalf
that enterprise, the Contracting States shall have regard to any relevant factors during any 12 month period commencing or ending in the fiscal year concerned. In particular, if the relevant activities are devoted wholly or almost wholly on behalf
that enterprise for a period exceeding 9 months within that period
12 months, they will be considered to have been so devoted in that fiscal year. 4. Article 6
immovable property in a Contracting State may be taxed in that Contracting State in accordance with Article 13
this Convention. 5. Article 7
a permanent establishment, it is understood that expenses to be allowed as deductions by a Contracting State include only expenses that are deductible under the domestic laws
that State. 6. Article 12 The Contracting States agree that where Lithuania agrees to a lower rate
tax than 5 per cent in respect
the royalties specified in paragraph
or 10 per cent in respect
any other royalties in any Convention between Lithuania and a third State which is a member
the Organisation for Economic Co-operation and Development at the date
signature
this Convention, and that Convention enters into force either before or after the date
entry into force
this Convention, the competent authority
Lithuania shall notify the competent authority
the United Kingdom
the terms
the relevant paragraph in the Convention with that third State immediately after the entry into force
that Convention and such lower rate
tax shall be substituted in Article 12
this Convention for 5 per cent in respect
the royalties specified in paragraph
any other royalties with effect from the date
entry into force
that Convention, or
this Convention, whichever is the later. 7. Article 25
the Republic
Lithuania, I have the honour to suggest that the present Note and Your Excellency’s reply to that effect should be regarded as constituting an agreement between the two Governments in this matter, which shall enter into force at the same time as the entry into force
the Convention.” The foregoing proposals being acceptable to the Government
the Republic
Lithuania, I have the honour to confirm Your Excellency’s Note and this reply shall be regarded as constituting an agreement between the two Governments in this matter which shall enter into force at the same time as the entry into force
the Convention. I take this opportunity to renew to Your Excellency the assurance
my highest consideration.
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