AGREEMENT BETWEEN THE GOVERNMENT OF ROMANIA AND THE GOVERNMENT OF THE UNITED ARAB EMIRATES FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME

Preamble

The Government of Romania and the Government of the United Arab Emirates,

Desiring to promote and enhance their mutual financial and investment cooperation by concluding and Agreement for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income.

Have agreed as follows:

Article 1

PERSONAL SCOPE

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

Article 2

TAXES COVERED

This Agreement shall apply to taxes on income imposed on behalf of a Contracting State, or of its local governments or local authorities or by administrative-territorial units thereof, irrespective of the manner in which they are levied.

There shall be regarded as taxes on income all taxes imposed on total income or on elements of income, including taxes on gains from the alienation of movable or immovable property, as well as taxes on capital appreciation.

The existing taxes to which this Agreement shall apply are in particular:

in the case of Romania:

tax on income;

tax on profit;

(hereinafter referred to as “Romanian tax”).

in the case of the United Arab Emirates:

income tax;

corporation tax;

(hereinafter referred to as “U.A.E. tax”).

Nothing in this Agreement shall affect the right of the Federal Government of the United Arab Emirates, its local governments or local authorities to apply its own laws related to the taxation of income derived from the petroleum and natural resources; such activities will be taxed according to the law of the United Arab Emirates.

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

Article 3

GENERAL DEFINITIONS

For the purposes of this Agreement, unless the context otherwise requires:

the terms “a Contracting State” and “the other Contracting State” mean Romania or the United Arab Emirates, as the context requires;

the term “Romania” means the state territory of Romania, including its territorial sea and air space above them, over which Romania exercises sovereignty, as well as the contiguous zone, the continental shelf and the exclusive economic zone over which Romania exercises sovereign rights and jurisdiction, in accordance with its legislation and the rules and principles of international law;

the term “United Arab Emirates” means the U.A.E. and used in a geographical sense, means the area in which the territory is under its sovereignty as well as the territorial sea, airspace and submarine areas over which the United Arab Emirates exercises in conformity with international law and the law of United Arab Emirates sovereign rights, including the mainland and islands under its jurisdiction in respect of any activity carried on in connection with the exploration for or the exploitation of the natural resources;

the term “person” includes an individual, a company and any other body of persons;

the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;

the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

the term “national” means:

in the case of Romania, any individual possessing the Romanian citizenship in accordance with the laws of Romania and any legal person, body of persons and any other entity set up and deriving its status as such from the laws in force in Romania;

in the case of the United Arab Emirates, all individuals possessing the nationality of United Arab Emirates in accordance with United Arab Emirates laws and any legal persons, partnership and other body corporate deriving its status as such from United Arab Emirates laws;

the term “international traffic” means any transport by a ship or aircraft operated by an enterprise that has its place of effective management in a Contracting State, except when such transport is operated solely between places in the other Contracting State;

the term “competent authority” means:

in the case of Romania, the Minister of Public Finance or its authorized representative;

in the case of the United Arab Emirates, the Minister of Finance or its authorized representative.

the term “business” also includes the performance of professional services and of other activities of an independent character.

As regards the application of the Agreement at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Agreement applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.

Article 4

RESIDENT

For the purposes of this Agreement, the term “resident of a Contracting State” means:

in the case of Romania: any person who, under the laws of Romania, is liable to tax therein by reason of his domicile, residence, place of management, place of registration or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in Romania in respect only of income from sources in Romania;

in the case of United Arab Emirates: a person who, under the laws of United Arab Emirates has his domicile in the United Arab Emirates and a company which is incorporated in the United Arab Emirates and has its effective place of management therein.

For the purpose of paragraph 1 above:

in the case of Romania, the term “resident” shall include:

Romania, any administrative – territorial unit or any local authority thereof and the Government of Romania;

the National Bank of Romania, any institution or any person or any entity owned or controlled directly or indirectly by Romania, by an administrative – territorial unit or by a local authority thereof or by the Government of Romania.

in the case of United Arab Emirates, the term “resident” shall include:

the Federal Government of the United Arab Emirates, the local governments and the local authorities thereof;

any Governmental institutions created under public law such as the Central Bank, funds, corporations, authorities, foundations, agencies or any other similar entities established in the United Arab Emirates;

any intergovernmental entity established in the United Arab Emirates in whose capital the United Arab Emirates subscribes together with other States.

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

he shall be deemed to be a resident of 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 of the Contracting State with which his personal and economic relations are closer (center of vital interests);

if the Contracting State in which he has his center of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode;

if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the Contracting State of which he is a national;

if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then such a person shall be deemed to be a resident of the State in which its place of effective management is situated.

Article 5

PERMANENT ESTABLISHMENT

For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

The term “permanent establishment” includes especially:

a place of management;

a branch;

an office;

a factory;

a workshop, and

a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

A building site or construction or installation project constitutes a permanent establishment only if it lasts more than twelve months.

Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:

the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

the maintenance of a stock of goods or merchandise belonging to the enterprise, which is exhibited at a trade fair or exhibition, and which is sold by the enterprise at the end of such fair or exhibition provided that involving parties or companies fulfill all requirements in either Contracting State;

the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise;

the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;

the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to f), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

Notwithstanding the provisions of paragraphs 1 and 2, where a person – other than an agent of an independent status to whom paragraph 6 applies – is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker or any agent of an independent status, provided that such persons are acting in the ordinary course of their business.

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

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 Contracting State.

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 with respect to 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.

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

The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise.

Article 7

BUSINESS PROFITS

The profits of an enterprise of 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 of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

Subject to the provisions of paragraph 3, where an enterprise 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 enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

In determining the profits of a permanent establishment, there shall be allowed as deductions expenses 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.

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 enterprise.

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.

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

Article 8

SHIPPING AND AIR TRANSPORT

Profits derived from the operation of ships or aircraft in international traffic shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

If the place of effective management of a shipping enterprise is aboard a ship, then it shall be deemed to be situated in the Contracting State in which the home harbour of the ship is situated, or, if there is no such home harbour, in the Contracting State of which the operator of the ship is a resident.

The provisions of paragraph 1 shall also apply to profits from the participation in a pool, a joint business or an international operating agency.

The provisions of paragraph 1 shall also apply to the following income from the operations of aircraft in international traffic:

income from the sale of tickets on behalf of an aircraft enterprise;

income from selling of engineering services to a third party and any other income arising from other technical services which are incidental to the operation of airlines in international traffic;

interest on cash deposits and income derived from stock, bonds and shares provided that such income is incidental to the operations of airlines and constitutes an integral part of the operation of airlines in international traffic.

Article 9

ASSOCIATED ENTERPRISES

Where

an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of 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 of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

Where a Contracting State includes in the profits of an enterprise of that State, and taxed accordingly, profits on which an enterprise of 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 of 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 of the tax charged therein on those profits. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall if necessary consult each other.

Article 10

DIVIDENDS

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 Contracting State.

However, dividends paid by a company which is a resident of a Contracting State may also be taxed in that State 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 3% (three percent) of the gross amount of the dividends.

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

Notwithstanding the provisions of paragraphs 1 and 2 of this Article dividends paid by a company which is a resident of either Contracting State shall not be taxable if the beneficial owner of the dividends is:

the Government of any Contracting State or any governmental institution or entity thereof;

a company which is a resident of either Contracting State and the capital of which is owned directly or indirectly (at least 25% twenty five percent) by the Government or governmental institutions of either Contracting States.

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.

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, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

For the purpose of paragraph 3, the term “Government” includes particularly but not exclusively:

in the case of Romania:

the National Bank of Romania;

any institution or any person or any entity owned or controlled directly or indirectly by Romania, by an administrative-territorial unit or by a local authority thereof or by the Government of Romania.

in the case of United Arab Emirates:

Central Bank of the United Arab Emirates;

Abu Dhabi Investment Authority;

Abu Dhabi Investment Council;

Emirates Investment Authority;

Mubadala Development Company;

International Petroleum Investment Company;

Dubai World;

Investment Corporation of Dubai;

Abu Dhabi National Energy Company PJSC (TAQA); or (x) any other institution created by the Federal Government, the local governments, or the local authorities, which is recognized as an integral part of that Government, those governments or those authorities as shall be agreed by notification of the competent authorities of the Contracting States.

Where accompany 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 situated in that other State, nor subject the company’s undistributed profits to a tax on the company’s undistributed profits, even the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the shares or other rights in respect of which the dividend is paid to take advantage of this Article by means of that creation or assignment.

Article 11

INTEREST

Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other Contracting State.

However, interest arising in a Contracting State may also be taxed in that State 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 3% (three percent) of the gross amount of the interest.

Notwithstanding the provisions of paragraphs 1 and 2 of this Article, interest arising

in the United Arab Emirates, and paid to the Government of Romania or to any of its financial institutions shall be exempt from U.A.E. tax;

in Romania and paid to the Government of the United Arab Emirates or its financial institutions shall be exempted from Romanian taxes;

from institutions the capital of which is wholly or partially owned by the Government of Romania or the Government of the United Arab Emirates shall be exempt from taxation related to interest in either Contracting State.

For the purpose of paragraph 3, the term “Government” includes particularly but not exclusively:

in the case of Romania:

Romania, any administrative – territorial unit or any local authority thereof and the Government of Romania;

the National Bank of Romania;

any institution or any person or any entity owned or controlled directly or indirectly by Romania, by an administrative-territorial unit or by a local authority thereof or by the Government of Romania.

in the case of United Arab Emirates:

Central Bank of the United Arab Emirates;

Abu Dhabi Investment Authority;

Abu Dhabi Investment Council;

Emirates Investment Authority;

Mubadala Development Company;

International Petroleum Investment Company;

Dubai World;

Investment Corporation of Dubai;

Abu Dhabi National Energy Company PJSC (TAQA); or

any other institution created by the Federal Government, the local governments, or the local authorities, which is recognized as an integral part of that Government, those governments or those authorities as shall be agreed by notification of the competent authorities of the Contracting States.

The term “interest” as used in this Article means income from debtclaims 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.

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 and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Interest shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the interest, whether he is resident of a Contacting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, an such interest is borne by such permanent establishment, than such interest shall be deemed to arise in the State in which the permanent establishment is situated.

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 given to the other provisions of this Agreement.

The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the debt-claim in respect of which the interest is paid to take advantage of this Article by means of that creation or assignment.

Article 12

ROYALTIES

Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxed in that other State.

However, royalties arising in a Contracting State may also be taxed in that State according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other Contracting State, the tax so charged shall not exceed 3% (three percent) of the gross amount of such royalties.

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 information concerning industrial, commercial or scientific experience.

The provisions of paragraphs 1 and 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 and the right or property in respect of which the royalties are paid is directly connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Royalties shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where however, the person paying the royalties, whether he is resident of a Contacting State or not, has in a Contracting State a permanent establishment in connection with which the liability to pay the royalties was incurred, an such royalties is borne by such permanent establishment, than such royalties shall be deemed to arise in the State in which the permanent establishment is situated.

Where, by reason of a special relationship between the payer and 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 given to the other provisions of this Agreement.

The provisions of this Article shall not apply if it was the main purpose or one of the main purposes of any person concerned with the creation or assignment of the rights in respect of which the royalties are paid to take advantage of this Article by means of that creation or assignment.

Article 13

CAPITAL GAINS

Gains derived by a resident of a Contracting State from the alienation of immovable property, as defined in paragraph 2 of Article 6, and situated in the other Contracting State may be taxed in the Contracting State in which such property is situated.

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 in the other Contracting State, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise), may be taxed in that other State.

Gains from the alienation of ships or aircraft operated in international traffic and movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

Gains derived by a resident of a Contracting State from the alienation of shares of companies that are listed on an approved Stock market shall be taxable only in the State of residence.

Gains from the alienation of any movable property other than that referred to in paragraphs 2, 3 and 4, such as shares in a company, other than those mentioned in paragraph 4, or securities, bonds, debentures and the like, shall be taxable only in the Contracting State of which the alienator is a resident.

Article 14

INCOME FROM EMPLOYMENT

Subject to the provisions of Articles 15, 18, 19 and 20 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.

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:

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 fiscal year concerned; and

the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and

the remuneration is not borne by a permanent establishment which the employer has in the other Contracting State.

Notwithstanding the preceding provisions of this Article, remuneration derived, in respect of an employment exercised aboard 3 ship or aircraft operated in international traffic shall be taxed only in the Contracting State in which the place of effective management of the enterprise is situated.

Article 15

TEACHERS AND RESEARCHES

An individual who is a resident of a Contracting State immediately before making a visit to the other Contracting State and who, at the invitation of any university, college, school or other similar educational institution or scientific research institution visits that other State for a period not exceeding three years solely for the purpose of teaching or conducting research or both at such educational institution or scientific research institution shall be exempted from tax for a period not exceeding three years in the other State on any remuneration for such teaching or research.

Article 16

STUDENTS AND BUSINESS APPRENTICES

Payments which a student or business apprentice 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 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 17

DIRECTORS’ FEES

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 of a company which is a resident of the other Contracting State may be taxed in that other State.

Article 18

PENSIONS AND ANNUITIES

Subject to the provisions of paragraph 2 of Article 19, pensions and other similar remuneration paid to a resident of a Contracting State in consideration of past employment shall be taxable only in that State.

Notwithstanding the provisions of paragraph 1 of this Article, payments made under the social security legislation of a Contracting State shall be taxable only in that State.

The term “annuity” means a stated sum payable to an individual periodically at stated times during his life or during a specified or ascertainable period of 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

Salaries, wages and other similar remuneration, other than a pension, paid by a Contracting State or a local government or a local authority, or an administrative – territorial unit thereof to an individual in respect of services rendered to that State or government, or authority or unit shall be taxable only in that State.

However, such salaries, wages and other 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:

is a national of that State; or

did not become a resident of that State solely for the purpose of rendering the services.

Any pension paid by, or out of funds created by a Contracting State or a local government or a local authority or an administrative – territorial unit thereof to an individual in respect of services rendered to that State or government or authority or unit shall be taxable only in that State.

However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of that State.

The provisions of Articles 14, 15, 17, 18 and 20 shall apply to salaries, wages, pensions and other similar remuneration in respect of services rendered in connection with a business carried on by a Contracting State or a local government or a local authority or an administrative – territorial unit thereof.

Article 20

ENTERTAINERS AND SPORTSPERSONS

Notwithstanding the provisions of Articles 7 and 14, 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 sportsperson, from its personal activities as such exercised in the other Contracting State, may be taxed in that other State.

Where income in respect of personal activities exercised by an entertainer or a sportsperson in its capacity as such accrues not to the entertainer or sportsperson itself but to another person, that income may, notwithstanding, the provisions of Articles 7 and 14, be taxed in the Contracting State in which the activities of the entertainer or sportsperson are exercised.

Notwithstanding the provisions of paragraphs 1 and 2, income derived from the activities exercises by the entertainers or sportspersons in a Contracting State where the visit to that State is financed from public funds of the other State, a local government, local authority, or an administrative territorial unit thereof or by a public agency of them and the activity is carried out other than for the purpose of profit shall be exempt from tax in the Contracting State in which these activities are exercised.

Article 21

OTHER INCOME

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

The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, 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 and the right or property in respect of which the income is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Article 22

METHODS FOR ELIMINATION OF DOUBLE TAXATION

Double taxation shall be eliminated as follows:

in the case of Romania:

Where a resident of Romania derives income which, in accordance with the provisions of this Agreement, may be taxed in United Arab Emirates, Romania shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in United Arab Emirates. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable, as the case may be, to the income which may be taxed in United Arab Emirates.

in the ease of United Arab Emirates:

According to the legislation of the United Arab Emirates taking into account the general principle of avoidance of double taxation with adherence of either credit or debit method.

Article 23

NON-DISCRIMINATION

Nationals 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 nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall, notwithstanding the provisions of Article 1, also apply to persons who are not residents of one or both of the Contracting States.

The taxation on a permanent establishment which an enterprise of a Contracting State has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises of that other State carrying on the same activities. 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 reductions for taxation purposes on account of civil status or family responsibilities which it grants to its own residents.

Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11, or paragraph 6 of Article 12, apply, interest, royalties and other disbursements paid by an enterprise of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of such enterprise, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State.

Enterprises of a Contracting State, the capital of which is wholly or partly owned o f controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned Contracting 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 of the first-mentioned State are or may be subjected.

The provisions of this Article shall apply only to taxes which are covered by this Agreement.

Article 24

MUTUAL AGREEMENT PROCEDURE

Where a resident of a Contracting State 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 Agreement, he may, without prejudice to the remedies provided by the national law of those States, address to the competent authority of the Contracting State of which he is a resident an application in writing stating the grounds for claiming the revision of such taxation. To be admissible, the said application must be submitted three years from the first notification of the action resulting in taxation not in accordance with this Agreement.

The competent authority shall endeavour, if the objection appears to it to be justified and if it is not by itself able to arrive at an appropriate 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 not in implemented notwithstanding any time limits in the domestic law of the Contracting States.

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 this Agreement. They may also consult together for elimination of double taxation in cases not provided for in this

Agreement.

The competent authorities of the Contracting States shall, when necessary, communicate with each other directly for the purpose of applying this Agreement and reaching an agreement in the sense of the preceding paragraphs.

Article 25

EXCHANGE OF INFORMATION

The competent authorities of the Contracting States shall exchange such information as is necessarily relevant for carrying out the provisions of this Agreement or to the administration or enforcement of the domestic laws concerning taxes of every kind and description imposed on behalf of the Contracting States, or of its local governments or local authorities or by administrative-territorial units thereof, insofar as the taxation thereunder is not contrary to the Agreement. The exchange of information is not restricted by Articles 1 and 2.

Any information received under paragraph 1 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) concerned with the assessment or collection of, the enforcement or prosecution in respect of, the determination of appeals in relation to the taxes referred to in paragraph 1, or the oversight of the above. 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.

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

to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State;

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;

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).

If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall use its information gathering measures to obtain the requested information, even though that other State may not need such information for its own tax purposes. The obligation contained in the preceding sentence is subject to the limitations of paragraph 3 but in no case shall such limitations be construed to permit a Contracting State to decline to supply information solely because it has no domestic interest in such information.

In no case shall the provisions of paragraph 3 be construed to permit a Contracting State to decline to supply information solely because the information is held by a bank, other financial institution, nominee or person acting in an agency or a fiduciary capacity or because it relates to ownership interests in a person.

Article 26

MEMBERS OF DIPLOMATIC MISSIONS AND CONSULAR POSTS

Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements.

Article 27

ENTRY INTO FORCE

Each Government shall notify in writing to the other Government through diplomatic channels the completion of its internal legal procedures required for the entry into force of this Agreement.

The Agreement shall enter into force thirty days after the date of the receipt of the latter of these notifications referred to in paragraph 1 of this Article and its provisions shall have effect to the income paid on or after the first day of January in the calendar year next following the year in which the Agreement enters into force.

The Agreement between the Government of Romania and the Government the United Arab Emirates for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income and on Capital signed at Abu Dhabi, on 11 April 1993, shall be deemed as terminated and cease to have effect on the first day of January in the calendar year next following the year in which this Agreement enters into force in accordance with paragraph 2 of this Article.

Article 28

TERMINATION

This Agreement shall remain in effect unless either Government sends a written notification through the diplomatic channel to the other Government confirming its intention to terminate this Agreement. Such written notification must be given on or before 30 June in any calendar year beginning after the expiration of a period of five years from the date of the entry into force of this Agreement.

In such event, this Agreement shall be deemed as terminated and cease to have effect on the first day of January in the calendar year next following the year in which the notification of termination was given.

IN WITNESS WHEREOF, the undersigned, duly authorized thereto, have signed this Agreement.

DONE at Dubai on 04.05.2015 on , corresponding to […], in duplicate, in the Romanian, Arabic and English languages, all texts being equally authentic.

In case there is any divergence of interpretation, the English text shall prevail.

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