ARTICLE 22 Relief from Double Taxation 　　1. In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income: 　　a) the income tax paid to Austria by or on behalf of such citizen or resident; and 　　b) in the case of a United States company owning at least 10 percent of the voting stock of a　company which is a resident of Austria and from which the United States company receives dividends, the income tax paid to Austria by or on behalf of the distributing company with respect to the profits out of which the dividends are paid. 　　For the purposes of this paragraph, the taxes referred to paragraphs 2b) and 3 of Article 2 (Taxes Covered) shall be considered income taxes. 　　2. Where a United States citizen is a resident of Austria: 　　a) with respect to items of income that under provisions of this Convention are exempt from　United States tax or that are subject to a reduced rate of United States tax when derived by a resident of Austria who is not a United States citizen, Austria shall allow as a credit against Austrian tax, only the tax paid, if any, that the United States may impose under the provisions of this Convention, other than taxes that may be imposed solely by reason of citizenship under the saving clause of paragraph 4 of Article 1 (Personal Scope); 　　b) for purposes of computing United States tax on those items of income referred to in　subparagraph a) the United States shall allow as a credit against United States tax the income tax paid to Austria after the credit referred to in subparagraph a); the credit so allowed shall not reduce the portion of the United States tax that is creditable against the Austrian tax in accordance with subparagraph a); and 　　c) for the exclusive purpose of relieving double taxation in the United States under subparagraph b), items of income referred to in subparagraph a) shall, notwithstanding anything in paragraph 4, be deemed to arise in Austria to the extent necessary to avoid double taxation of such income under　subparagraph b). 　　3. In the case of Austria, double taxation shall be avoided as follows: 　　a) Where a resident of Austria derives income which, in accordance with the provisions of this　Convention, may be taxed in the United States (other than solely by reason of citizenship in accordance with paragraph 4 of Article 1 (Personal Scope)), Austria shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid in the United States. Such deduction shall not, however, exceed that part of the income tax as computed before the deduction is given which is attributable to the income that may be taxed in the United States. A tax levied according to paragraph 6 of Article 10 (Dividends) shall be attributable to the taxable income derived by the permanent establishment in the year which that tax is levied. 　　b) Where in accordance with any provision of the Convention income derived by a resident of　Austria exempt from tax in Austria, Austria may nevertheless in calculating the amount of tax on the　remaining income of such resident, take into account the exempted income. 　　4. For the purposes of allowing relief from double taxation pursuant to paragraph 1 of this Article, and subject to such source rules in the domestic laws of the Contracting States as apply for the purpose of limiting foreign tax credit, the source of income and profits shall be determined exclusively as follows: 　　a) income and profits derived by a resident of a Contracting State which may be taxed in the other　Contracting State in accordance with this Convention (other than solely by reason of citizenship in　accordance with paragraph 4 of Article 1 (Personal Scope)) shall be deemed to arise in that other State; 　　b) income and profits derived by a resident of a Contracting State which may not be taxed in the　other Contracting State in accordance with this Convention shall be deemed to arise in the first-mentioned State. 　　The rules of this paragraph shall not apply in determining credits against United States tax for foreign taxes other than the taxes referred to in paragraphs 2b) and 3 of Article 2 (Taxes Covered). ARTICLE 23 Non-Discrimination 　　1. Nationals of a Contracting State shall not be subjected in the other 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. This provision shall, notwithstanding the provisions of Article 1 (Personal Scope), also apply to persons who are not residents of one or both of the Contracting States. However, for the purposes of United States tax, a United States national who is not a resident of the United States and an Austrian national who is not a resident of the United States are not in the same circumstances. 　　2. 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. 　　3. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), paragraph 4 of Article 11 (Interest), or paragraph 5 of Article 12 (Royalties) 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 condition as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of an enterprise of a Contracting State to a resident of the other contracting State shall, for the purpose of determining the taxable capital of such enterprise, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State. 　　4. Enterprises of a Contracting State, the capital 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 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. 　　5. Nothing in this Article shall be construed as preventing a Contracting State from imposing the tax described in paragraphs 6 and 7 of Article 10 (Dividends). 　　6. The provisions of this Article shall apply to taxes of every kind and description imposed by a Contracting State or a political subdivision or local authority thereof. ARTICLE 24 Mutual Agreement Procedure 　　1. Where a person considers that the actions of one or both of the Contracting States result or will result for him or her in taxation not in accordance with the provisions of this Convention, he or she may, irrespective of the remedies provided by the domestic law of those States, present his or her case to the competent authority of the Contracting State of which he or she is a resident or national. 　　2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory 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 which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits in the domestic law of the Contracting States. 　　3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. In particular the competent authorities of the Contracting States may agree: 　　a) to the same attribution of income, deductions, credits, or allowances of an enterprise of a Contracting State to its permanent establishment situated in the other Contracting State; b) to the same allocation of income, deductions, credits, or allowances between persons; 　　c) to the same characterization of particular items of income; 　　d) to a common determination of the State in which an item of income arises; and 　　e) to a common meaning of a term. 　　They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 　　4. The competent authorities of the Contracting States may communicate with each other directly for the purpose reaching an agreement in the sense of the preceding paragraphs. 　　5. The competent authorities of the Contracting States shall consult together with a view to developing a commonly agreed application of the provisions of this Convention, including the provisions of Article 16 (Limitation on Benefits). The competent authorities of the Contracting 　　States may each prescribe regulations to carry out the purposes of this Convention. ARTICLE 25 Exchange of Information and Administrative Assistance 　　1. The competent authorities of the Contracting States shall spontaneously or upon request exchange such information as is necessary for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by this Article insofar as the taxation thereunder is not contrary to the Convention. The carrying out of provisions of the domestic laws of the Contracting States concerning taxes includes penal investigations with regard to fiscal offenses relating to taxes covered by this Article. The competent authorities of the Contracting States may agree on information which shall be furnished on a regular basis. The exchange of information is not restricted by Article 1 (Personal Scope). 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 and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment or collection of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, or the oversight of the administration of the taxes covered by this Article. 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. 2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: 　　a) to carry out administrative measures at variance with the laws and administrative practice of　that or of the other Contracting State; 　　b) 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; 　　c) to supply information which would disclose any trade, business, industrial, commercial or profession secret or trade process, or information, the disclosure of which would be contrary to public policy. 　　3. If information concerning taxes is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this Article in the form of depositions of witnesses and authenticated 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 such other State with respect to its own taxes. 　　4. The tax authorities of a Contracting State may deliver documents to persons in the other Contracting State by using postal services. Each Contracting State shall, for purposes of its taxes, determine in accordance with its domestic law the legal efficacy or sufficiency of documents so delivered. 　　5. The preceding paragraphs likewise apply to assistance carried out under penal investigation procedures. However, requests for arrest of persons are not covered by the present Convention. 　　6. For the purpose of the preceding paragraphs of this Article, this Convention shall apply to taxes of every kind imposed by a Contracting State. 　　7. The Contracting States undertake to lend each other support and assistance in the collection of taxes to the extent necessary to ensure that relief granted by the present Convention from taxation imposed by a Contracting State does not inure to the benefit of persons not entitled thereto, provided that: 　　a) the requesting State must produce a copy of a document certified by its competent authority　specifying that the sums referred to for the collection of which it is requesting the intervention of the other State, are finally due and enforceable; 　　b) a document produced in accordance with the provisions of paragraph 7 shall be rendered　enforceable in accordance with the laws of the requested State. It is specified that under current Austrian legislation, such documents must be rendered enforceable by the Regional Finance Directorates (Finanzlandesdirektionen); 　　c) the requested State shall effect recovery in accordance with the rules governing the recovery of　similar tax debts of its own; however, tax debts to be recovered shall not be regarded as privileged debts in the requested State. In the Republic of Austria, judicial execution shall he requested by the　Finanzprokuratur or by the finance office delegated to act on his behalf; and 　　d) appeals concerning the existence or amount of the debt shall lie only to the competent tribunal of the requesting State. The provisions of this paragraph shall not impose upon either Contracting State the obligation to carry out administrative measures different from those used in the collection of its own tax, or which would be contrary to its sovereignty, security, public policy or its essential interests. ARTICLE 26 Diplomatic Agents and Consular Officers 　　Nothing in this Convention shall affect the fiscal privileges of diplomatic agents or consular officers under the general rules of international law or under the provisions of special agreements. ARTICLE 27 Application of the Convention 　　Nothing in this Agreement shall be construed so as to preclude either Contracting State from applying any withholding tax system according to its domestic laws. However, if the Agreement provides for an exemption from or a reduction of tax, the amount withheld in excess of the limitations prescribed by the Agreement shall be refunded upon request of the taxpayer entitled to the relief in question. ARTICLE 28 Entry into Force 　　1. This Convention shall be subject to ratification. The instruments of ratification shall be exchanged at as soon as possible. 　　2. The Convention shall enter into force on the first day of the second month following the exchange of instruments of ratification. Its provisions allocating taxation rights shall have effect, in respect of taxes withheld at source, for amounts paid or credited on or after the first day of the second month next following, and in respect of taxes on other income, for fiscal periods beginning on or after the first day of January next following, the date on which the Convention enters into force. 　　3. Where any greater relief from tax would have been afforded to a person entitled to the benefits of the Convention between the United States of America and the Republic of Austria with respect to taxes on income, signed in Washington on October 25, 1956 (hereinafter referred to as "the 1956 Convention") under that Convention than under this Convention, the 1956 Convention shall, at the election of such person, continue to have effect in its entirety for the first assessment period or taxable year following the date on which this Convention would otherwise have effect under the provisions of paragraph 2. 　　4. The 1956 Convention shall cease to have effect in respect of income to which this Convention applies in accordance with paragraphs 2 or 3 of this Article. The 1956 Convention shall terminate on the last date on which it has effect in accordance with the foregoing provisions of this Article. ARTICLE 29 Termination 　　This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention at any time after 5 years from the date on which this Convention enters into force provided that at least 6 months prior notice of termination has been given in writing through diplomatic channels. In such event, the Convention shall cease to have effect in respect of tax withheld at the source, for amounts paid or credited on or after, and in respect of other taxes, to fiscal periods beginning on or after, the first day of January next following the expiration of the 6 month period. 　　IN WITNESS THEREOF the undersigned being duly authorized by their respective Governments, have signed this Convention. 　　DONE at Vienna in duplicate, in the English and German languages, the two texts having equal authenticity, this 31 st day of May, 1996. FOR THE UNITED STATES OF FOR THE AMERICA: REPUBLIC OF AUSTRIA (s) Swanee Hunt (s) B. Ferrero-Waldner