The above-mentioned protocol entered into force on 8/12/2021 and has an effective date as from 01/01/2022.

The key changes brought about are in summary as follows:

Preamble Article 1

The preamble has been amended to reflect the intention of the Contracting States to further develop their economic cooperation in tax matters and to eliminate double taxation without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance including treaty-shopping arrangements.

Business Profits – Article 7

According to para (1), profits of an enterprise of a Contracting State shall be taxable only in that State unless it carries on business in the other Contracting State through a permanent establishment (PE).

In case an enterprise carries on business through a PE then the profits that are attributable to the PE may be taxed in that other State in accordance with para (2) of the same article.

Application of the Agreement in special cases – Article 27

It has been amended so that a benefit under this Treaty shall not be granted, in respect of an item of income, if it is reasonable to conclude, having regard to all relevant facts and circumstances, that obtaining that benefit was one of the principal purposes of any arrangement or transaction that resulted directly or indirectly in that benefit.