Article 8 Shipping and Air Transport Profits derived by an enterprise of a Contracting State from the operation of aircraft in international traffic shall be taxable only in that State. Gains from the alienation of shares of a company which is a resident of Tanzania, other than shares to which paragraph 4 applies, may be taxed in Tanzania provided that the person alienating the shares owns less than 25 percent of the capital stock of the company immediately before the alienation.
Subject to the existing provisions of the law of Canada regarding the determination of the exempt surplus of a foreign affiliate and to any subsequent modification of those provisions - which shall not affect the general principle hereof - for the purpose of computing Canadian tax, a company which is a resident of Canada shall be allowed to deduct in computing its taxable income any dividend received by it out of the exempt surplus of a foreign affiliate which is a resident of Tanzania.Article 22 Other Income Subject to the provisions of paragraph 2, 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. Notwithstanding anything in this Agreement: 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 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 extent that they would be exempt from tax if received by a resident of the first-mentioned State; 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; and pensions and other payments made under a public scheme which is part of the social security system of a Contracting State or a political subdivision or a local authority thereof, shall be taxable only in that State. Article 18 Artistes and Athletes Notwithstanding the provisions of Articles 7, 15 and 16, 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 an athlete, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall endeavour to provide information under this Article in the form requested, such as depositions of witnesses and copies of unedited original documents including books, papers, statements, records, accounts or writings , to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes. Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State. However, as most multinationals originate from the Global North while most of the production takes place in the Global South and as profits are routed through low-tax jurisdictions, the functionality of DTAs has become questioned. A Contracting State shall not change the income of an enterprise in the circumstances referred to in paragraph 1 after the expiry of the time limits provided in its national laws and, in any case, after five years from the end of the year in which the income which would be subject to such change would, but for the conditions referred to in paragraph 1, have accrued to that enterprise. One taxing jurisdiction might tax income at its source or destination, while others will tax income based on the residence or nationality of the recipient. In such a case, the provisions of Article 7 or Article 15, as the case may be, shall apply. Gains from the alienation of any property, other than that referred to in paragraphs 1, 2, 3, 4 and 5 shall be taxable only in the Contracting State of which the alienator is a resident. Whilst the Treaty allows either party tomake amendments at any time, such amendments require a mutual consent in writing through the diplomatic channel. Notwithstanding paragraphs 1 and 2 items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Agreement and arising in the other Contracting State may also be taxed in that other State, and according to the law of that State.
The competent authorities of the Contracting States may consult together for the elimination of double taxation in cases not provided for in the Agreement and may communicate with each other directly for the purpose of applying the Agreement.
Business profitis narrowly defined to meanincome derived by an enterprise from carrying on business.
Taxation of Capital Article 23 Capital Capital represented by immovable property owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.
However, such management or professional fees may also be taxed in the Contracting State in which they arise and according to the laws of that State, but the tax so charged shall not exceed 20 percent of the gross amount of the fees.
The exchange of information is not restricted by Article 1. However, research shows that taxation does not top the list of criteria that potential investors consider.
However, this limitation does not apply to lump-sum payments arising in Canada 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.