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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
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DT: Luxembourg: double taxation agreement, Article 26: Non-discrimination

 

(1) The 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 are or may be subjected.

(2) The term ` nationals ` means:

 

(a) in relation to the United Kingdom, all British subjects and British protected persons

(i) residing in the United Kingdom or any territory to which this Convention is extended under Article 31, or

(ii) deriving their status as such from connection with the United Kingdom or any territory to which the Convention is extended under Article 31,

and all legal persons, partnerships and associations deriving their status as such from the law in force in the United Kingdom or in any territory to which the Convention is extended under Article 31;

(b) in relation to Luxembourg, all individuals possessing the nationality of Luxembourg and all legal persons, partnerships and associations deriving their status as such from the law in force in Luxembourg.

(3) The taxation on a permanent establishment which an enterprise of 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 of that other State carrying on the same activities.

(4) Enterprises of a Contracting State, the capital of which is wholly or partly owned or 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 that first-mentioned State are or may be subjected.

(5) This Article shall not be construed as entitling a resident of one of the Contracting States to any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities which the law of the other Contracting State grants only to residents of that other Contracting State or as restricting the taxation of dividends paid by a company which is a resident of one of the Contracting States to a company which is a resident of the other Contracting State.

(6) In this Article the term ` taxation ` means taxes of every kind and description.