2. Table (Klar/Schmidt/Zorman)

DTT Austria/Slovenia

DTT Austria/Slovenia vs OECD-MC
Income and Capital Tax Treaty (2008)

Entry into force

1 February 1999

Effective Date

1 January 1999

Art 4 Resident

Art 4 of this Convention corresponds to Art 4 of the OECD-MC.

Art 5 Permanent establishment

Art 5 of this Convention corresponds to Art 5 OECD-MC.

Art 6 Income from immovable property

Art 6 para 4 of this Convention stipulates that the provisions of para 1 and para 3 of this Article – in contrast to the OECD-MC – shall also apply to income from immovable property used for the performance of independent personal services.

Art 7 Business profits

Art 7 of this Convention corresponds to Art 7 of the OECD-MC.
In addition, Art 7 para 8 of this Convention includes profits derived by any partner from his participation in a partnership and, in the case of Austria, from a participation in a „silent partnership“ (stille Gesellschaft) created under Austrian law.

Art 8 Shipping and air transport

Art 8 of this Convention corresponds to Art 8 OECD-MC but it does not include a provision concerning profits derived from the operating of boats engaged in inland waterways transport

Art 10 Dividends

In accordance with the OECD-MC, Art 10 para 2 lit a of this Convention states that dividends may be taxed in the Contracting State of which the legal entity paying the dividends is a resident and according to the laws of that State, but the withholding tax shall not exceed 5 per cent of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends, and in all other cases the withholding tax shall not exceed 15 per cent of the gross amount of the dividends.

Art 11 Interest

Art 11 para 2 of this Convention, in contrast to the OECD-MC, provides that interest may also be taxed in the Contracting State in which it arises and according

to the laws of that State, but the withholding tax shall not exceed 5 per cent of the gross amount of the interest.
In addition, Art 11 para 2a of this Convention stipulates that notwithstanding the provisions of para 2 of this Article, interest shall be exempt from withholding tax if the payer is or the interest is paid to a Contracting State or a political subdivision or a local authority or Central Bank, or the interest is paid in respect of a loan made, approved, guaranteed or insured by an institution which is authorized to act as the export financing institution on behalf of the Contracting State.
In addition, Art 11 para 5 states that interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State.

Art 12 Royalties

In contrast to the OECD-MC, Art 12 para 2 of this Convention stipulates that royalties may also be taxed in the Contracting State in which they arise, but the withholding tax shall not exceed 5 per cent of the gross amount of the royalties.
In addition, Art 12 para 5 states that royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State.

Art 13 Capital gains

Art 13 of this Convention does not contain a special provision concerning gains from the alienation of shares of a company, the property of which consists directly or indirectly principally of immovable property.

Art 14 Independent personal services

This Convention still includes an Art 14 (which has been deleted in the OECD-MC) stipulating that income derived from professional services or other activities of an independent character shall be taxable only in the State of residence, except if the taxpayer has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities (and this only applies to the income that is attributable to the fixed base).

Art 15 Dependent personal services

Art 15 of this Convention corresponds to Art 15 OECD-MC.

Furthermore, Art 15 para 3 does not include such remuneration derived from an employment exercised aboard a boat engaged in inland waterway transport.

Art 16 Directors' fees

Art 16 of this Convention corresponds to Art 16 of the OECD-MC including special provisions concerning directors' fees.

Art 17 Artistes and sportsmen

Art 17 para 3 of this Convention, in contrast to the OECD-MC, provides that income mentioned in this Article shall be exempt from tax in the Contracting State in which the activity of the entertainer or sportsman is exercised, provided that this activity is performed within the scope of a cultural or sports exchange program approved by both Contracting States.

Art 20 Professors and researchers

In contrast to the OECD-MC, Art 20 of this Convention contains special provisions concerning individuals who are teaching or carrying out research.

Art 22 Other income

Art 22 of this Convention – in accordance with Art 21 of the OECD-MC – states that income not dealt with in the other articles of the Convention shall be taxable only in the State of residence.

Art 24 Elimination of double taxation

Art 24 of this Convention stipulates that double taxation shall be avoided in Austria by the exemption method with progression and in Slovenia by the credit method.

Art 27 Exchange of information

According to Art 27, the competent authorities of the Contracting States shall exchange information concerning taxes covered by the Convention insofar as the taxation arising thereunder is not contrary to the Agreement.