GreatNorthCollective/greatnorth-canada-federal-laws-text huggingface dataset:
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed: (a) except in the case of dividends paid by a non-resident-owned investment corporation that is a resident of Canada, 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls directly or indirectly at least 25 per cent of the voting power in the company paying the dividends; and (b) 15 per cent of the gross amount of the dividends in all other cases. The provisions of this paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) except in the case of dividends paid by a non-resident-owned investment corporation that is a resident of Canada, 5 per cent of the gross amount of the dividends if the beneficial owner is a company that controls directly or indirectly at least 25 per cent of the voting power in the company paying the dividends; and
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 The term dividends as used in this Article means income from shares, “jouissance” shares or “jouissance” rights or other rights, not being debt-claims, participating in profits, as well as income which is subjected to the same taxation treatment as income from shares by the taxation law of the State of which the company making the distribution is a resident.
Income Tax Conventions Implementation Act, 2001 — I-3.55 6
6 Nothing in this Convention shall be construed as preventing a Contracting State from imposing on the alienation of immovable property situated in that State by a company carrying on a trade in immovable property or on the earnings of a company attributable to a permanent establishment in that State, a tax in addition to the tax which would be chargeable on the earnings of a company which is a national of that State, except that any additional tax so imposed shall not exceed 5 per cent of the amount of such earnings which have not been subjected to such additional tax in previous taxation years. For the purpose of this provision, the term earnings means the earnings attributable to the alienation of such immovable property situated in a Contracting State as may be taxed by that State under the provisions of Article 6 or of paragraphs 1 or 4 of Article 13, and the profits, including any gains, attributable to a permanent establishment in a Contracting State in a year or previous years after deducting therefrom all taxes, other than the additional tax referred to herein, imposed on such profits in that State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the beneficial owner of the interest is a resident of the other Contracting State, the tax so charged shall not exceed 15 per cent of the gross amount of the interest.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if: (a) it is paid to the Government of the other Contracting State or to a political subdivision or local authority thereof or the Central Bank of that State; (b) it is paid to a resident of Canada in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Export Development Corporation; and (c) it is paid to a resident of Ecuador in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by an organization which is specified and agreed in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) it is paid to the Government of the other Contracting State or to a political subdivision or local authority thereof or the Central Bank of that State;
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) it is paid to a resident of Canada in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by the Export Development Corporation; and
Income Tax Conventions Implementation Act, 2001 — I-3.55 (c)
(c) it is paid to a resident of Ecuador in respect of a loan made, guaranteed or insured, or a credit extended, guaranteed or insured by an organization which is specified and agreed in letters exchanged between the competent authorities of the Contracting States.
Income Tax Conventions Implementation Act, 2001 — I-3.55 4
4 The term interest as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income which is subjected to the same taxation treatment as income from money lent by the taxation law of the State in which the income arises. However, the term interest does not include income dealt with in Article 8 or 10.
Income Tax Conventions Implementation Act, 2001 — I-3.55 5
5 The provisions of paragraphs 1 and 2 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.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 However, such royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficiary owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed: (a) 10 per cent of the gross amount of the royalties for the use of, or the right to use, industrial, commercial or scientific equipment; (b) 15 per cent of the gross amount of the royalties in all other cases.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) 10 per cent of the gross amount of the royalties for the use of, or the right to use, industrial, commercial or scientific equipment;
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) 15 per cent of the gross amount of the royalties in all other cases.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 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, patent, trade mark, design or model, plan, secret formula or process or other intangible property, or for the use of, or the right to use, industrial, commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience, and includes payments of any kind in respect of motion picture films and works on film, videotape or other means of reproduction for use in connection with television.
Income Tax Conventions Implementation Act, 2001 — I-3.55 4
4 The provisions of paragraph 2 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.
Income Tax Conventions Implementation Act, 2001 — I-3.55 1
1 Gains derived by a resident of a Contracting State from the alienation of immovable property situated in the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has or had in the other Contracting State or of movable property pertaining to a fixed base that is or was 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 a fixed base, may be taxed in that other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or from movable property pertaining to the operation of such ships or aircraft, shall be taxable only in that State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 4
4 Gains derived by a resident of the Contracting State from the alienation of: (a) shares, the value of which is derived principally from immovable property situated in the other State, or (b) an interest in a partnership or trust, the value of which is derived principally from immovable property situated in that other State, may be taxed in that other State. For the purposes of this paragraph, the term immovable property does not include any property, other than rental property, in which the business of the company, partnership or trust is carried on.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) shares, the value of which is derived principally from immovable property situated in the other State, or
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) an interest in a partnership or trust, the value of which is derived principally from immovable property situated in that other State,
Income Tax Conventions Implementation Act, 2001 — I-3.55
may be taxed in that other State. For the purposes of this paragraph, the term immovable property does not include any property, other than rental property, in which the business of the company, partnership or trust is carried on.
Income Tax Conventions Implementation Act, 2001 — I-3.55 5
5 Gains derived from the alienation of any property, other than that referred to in paragraphs 1, 2, 3 and 4, shall be taxable only in the Contracting State of which the alienator is a resident.
Income Tax Conventions Implementation Act, 2001 — I-3.55 6
6 The provisions of paragraph 5 shall not affect the right of a Contracting State to levy, according to its law, a tax on gains from the alienation of any property derived by an individual who is a resident of the other Contracting State and has been a resident of the first-mentioned State at any time during the five years immediately preceding the alienation of the property.
Income Tax Conventions Implementation Act, 2001 — I-3.55 7
7 Where an individual who ceases to be a resident of a Contracting State and immediately thereafter becomes a resident of the other Contracting State, is treated for the purposes of taxation in the first-mentioned State as having alienated a property and is taxed in that State by reason thereof, the individual may elect to be treated for the purposes of taxation in the other State as if the individual had, immediately before becoming a resident of that State, sold and repurchased the property for an amount equal to its fair market value at that time.
Income Tax Conventions Implementation Act, 2001 — I-3.55 1
1 Income derived by an individual who is a resident of a Contracting State in respect of professional or similar services shall be taxable only in that State unless such services are performed or were performed in the other Contracting State and (a) the income is attributable to a fixed base which the individual has or had regularly available in that other State; or (b) such individual is present or was present in that other State for a period or periods exceeding in the aggregate 183 days in any consecutive twelve month period. In such case, the income attributable to the services may be taxed in that other State in accordance with principles similar to those of Article 7 for determining the amount of business profits and attributing business profits to a permanent establishment.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) the income is attributable to a fixed base which the individual has or had regularly available in that other State; or
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) such individual is present or was present in that other State for a period or periods exceeding in the aggregate 183 days in any consecutive twelve month period.
Income Tax Conventions Implementation Act, 2001 — I-3.55
In such case, the income attributable to the services may be taxed in that other State in accordance with principles similar to those of Article 7 for determining the amount of business profits and attributing business profits to a permanent establishment.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 The term professional services includes especially independent scientific, literary, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 Notwithstanding the provisions of paragraph 1, salaries, wages and other 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 any twelve month period commencing or ending 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.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and
Income Tax Conventions Implementation Act, 2001 — I-3.55 (c)
(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 Notwithstanding the preceding provisions of this Article, salaries, wages and other remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic by a resident of a Contracting State, shall be taxable only in that State unless the salaries, wages and other remuneration are derived by a resident of the other Contracting State.
Income Tax Conventions Implementation Act, 2001 — I-3.55
Directors’ fees and other similar payments derived by a resident of a Contracting State in that resident’s capacity as a member of the board of directors or a similar organ of a company which is a resident of the other Contracting State may be taxed in that other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 The provisions of paragraph 2 shall not apply if it is established that neither the entertainer or the sportsperson nor persons related thereto, participate directly or indirectly in the profits of the person referred to in that paragraph.
Income Tax Conventions Implementation Act, 2001 — I-3.55 2
2 Pensions arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise, and according to the law of that State. However, in the case of periodic pension payments, the tax so charged shall not exceed the lesser of: (a) 15 per cent of the gross amount of such periodic pension payments paid to the recipient in the calendar year concerned that exceeds twelve thousand Canadian dollars or its equivalent in Ecuadorian currency; and (b) the rate determined by reference to the amount of tax that the recipient of the payment would otherwise be required to pay for the year on the total amount of the periodic pension payments received by the individual in the year, if the individual were a resident of the Contracting State in which the payment arises.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) 15 per cent of the gross amount of such periodic pension payments paid to the recipient in the calendar year concerned that exceeds twelve thousand Canadian dollars or its equivalent in Ecuadorian currency; and
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) the rate determined by reference to the amount of tax that the recipient of the payment would otherwise be required to pay for the year on the total amount of the periodic pension payments received by the individual in the year, if the individual were a resident of the Contracting State in which the payment arises.
Income Tax Conventions Implementation Act, 2001 — I-3.55 3
3 Annuities, other than pensions, arising in a Contracting State and paid to a resident of the other Contracting State may also be taxed in the State in which they arise and according to the law of that State, but the tax so charged shall not exceed 15 per cent of the portion thereof that is subject to tax in that State. However this limitation does not apply to lump-sum payments arising on the surrender, cancellation, redemption, sale or other alienation of an annuity or to payments of any kind under an annuity contract the cost of which was deductible, in whole or in part, in computing the income of any person who acquired the contract.
Income Tax Conventions Implementation Act, 2001 — I-3.55 4
4 Notwithstanding anything in the Convention: (a) war pensions and allowances (including pensions and allowances paid to war veterans or paid as a consequence of damages or injuries suffered as a consequence of a war) arising in a Contracting State and paid to a resident of the other Contracting State shall be exempt from tax in that other State to the extend that they will be exempt from tax if received by a resident of the first-mentioned State; and (b) alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof shall be taxable only in that other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) war pensions and allowances (including pensions and allowances paid to war veterans or paid as a consequence of damages or injuries suffered as a consequence of a war) arising in a Contracting State and paid to a resident of the other Contracting State shall be exempt from tax in that other State to the extend that they will be exempt from tax if received by a resident of the first-mentioned State; and
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) alimony and other similar payments arising in a Contracting State and paid to a resident of the other Contracting State who is subject to tax therein in respect thereof shall be taxable only in that other State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) Salaries, wages and similar 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 in any other State shall be taxable only in the first-mentioned State.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) However, such salaries, wages and similar 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.
Income Tax Conventions Implementation Act, 2001 — I-3.55
Payments which a student, apprentice or business trainee 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 that individual’s education or training receives for the purpose of that individual’s maintenance, education or training shall not be taxed in that State, if such payments arise from sources outside that State.
Income Tax Conventions Implementation Act, 2001 — I-3.55
Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention may be taxed in the State in which they arise and according to the law of that State. Where such income is income from an estate or trust, other than a trust to which contributions were deductible, the tax so charged shall, if the income is taxable in the Contracting State in which the beneficial owner is a resident, not exceed 15 per cent of the gross amount of the income.
Income Tax Conventions Implementation Act, 2001 — I-3.55 1
1 In the case of Canada, double taxation shall be avoided as follows: (a) subject to the existing provisions of the laws of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Ecuador on profits, income or gains arising in Ecuador shall be deducted from any Canadian tax payable in respect of such profits, income or gains; (b) subject to the existing provisions of the laws of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Ecuador pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Ecuador by that first-mentioned company in respect of the profits out of which such dividend is paid; and (c) where, in accordance with any provision of the Convention, income derived by a resident of Canada is exempt from tax in Canada, Canada may nevertheless, in calculating the amount of tax on other income, take into account the exempted income.
Income Tax Conventions Implementation Act, 2001 — I-3.55 (a)
(a) subject to the existing provisions of the laws of Canada regarding the deduction from tax payable in Canada of tax paid in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — and unless a greater deduction or relief is provided under the laws of Canada, tax payable in Ecuador on profits, income or gains arising in Ecuador shall be deducted from any Canadian tax payable in respect of such profits, income or gains;
Income Tax Conventions Implementation Act, 2001 — I-3.55 (b)
(b) subject to the existing provisions of the laws of Canada regarding the allowance as a credit against Canadian tax of tax payable in a territory outside Canada and to any subsequent modification of those provisions — which shall not affect the general principle hereof — where a company which is a resident of Ecuador pays a dividend to a company which is a resident of Canada and which controls directly or indirectly at least 10 per cent of the voting power in the first-mentioned company, the credit shall take into account the tax payable in Ecuador by that first-mentioned company in respect of the profits out of which such dividend is paid; and