AGREEMENT

BETWEEN THE GOVERNMENT OF

THE RUSSIAN FEDERATION

AND THE GOVERNMENT OF FOR THE

AVOIDANCE OF DOUBLE TAXATION WITH RESPECT TO TAXES

ON INCOME AND ON CAPITAL

 The Government of the Russian Federation and the Government of the ____________________________, desiring to conclude An Agreement for the avoidance of double taxation with respect to taxes on income and on capital and with a view to promote economic cooperation between the two countries,

 Have agreed as follows

 Article 1

PERSONAL SCOPE

 This Agreement shall apply to persons who are residents of one or both of the Contracting States.                

 Article 2

TAXES COVERED

 1 . This Agreement shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

 2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

 3. The existing taxes to which this Agreement shall apply are in particular: (a) in the case of the Russian Federation:

(i) tax on profits (income) of enterprises and organizations,

(ii) income tax on individuals,

(iii) tax on property of enterprises, and

(iv) tax on property of individuals

(hereinafter referred to as ''Russian Tax'');

(b) in the case of______ :

(i) ____________,

(ii) ___________________,

(iii) _________________________________________________________,

(iv) ____________,  and

(v) ____________

(hereinafter referred to as '' Tax'').

 4. This Agreement shall apply also to any identical or substantially similar taxes on income and on capital which are imposed by either of the Contracting States after the date of signature of this Agreement in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any substantial changes which have been made in their respective taxation laws.

 Article 3

GENERAL DEFINITIONS

 1. For the purposes of this Agreement, unless the context otherwise requires:

(a) the terms ''a Contracting State'' and ''the other Contracting State'' mean the Russian Federation or ____________ , as the context requires;

(b) the term ''the Russian Federation'' means the territory of the Russian Federation as well as its exclusive economic zone and continental shelf where the Russian Federation exercises its sovereign rights and jurisdiction in conformity with the United Nations Convention on the Law of the Sea, 1982;

(c) the term ''____________'' means the territory of ________________ and includes its exclusive economic zone and continental shelf as defined by the international law;

(d) the term ''person'' includes an individual, a company and any other body of persons;

 (e) the terms ''enterprise of a Contracting State'' and ''enterprise of the other Contracting State'' mean respectively, an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other

Contracting State;

(f) the term ''company'' means any body corporate or any entity which is treated as a body corporate for tax purposes;

(g) the term ''international traffic'' means any transport by ship or aircraft or road vehicles operated by a resident of a Contracting State, except when the transport is operated solely between places in the other Contracting State;

(h) the term ''national'' means:

(i) any individual possessing the citizenship of a Contracting State; and

(ii) any person other than an individual deriving its status as such from the laws in force in a Contracting State;

(i) the term ''competent authority'' means:

(i) in the case of the Russian Federation - the Ministry of Finance of the Russian Federation or its authorized representative;

(ii) in the case of ___________________________________________

_____________________________________________________________

  2. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State concerning the taxes to which this Agreement applies.

 Article 4

RESIDENT

1. For the purposes of this Agreement, the term ''resident of a Contracting State'' means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of registration or any other criterion of a similar nature. But this term does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein.

 2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows:

(a) he shall be deemed to be a resident of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either

Contracting State, he shall be deemed to be a resident of the State in which he has an habitual abode;

(c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident of the State of which he is a national;

(d) if each State considers him to be a national or if he is a national of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

 3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

 Article 5

permanent establishment

1. For the purposes of this Agreement, the term ''permanent establishment'' means a fixed place of business through which the business of an enterprise of a Contracting State is wholly or partly carried on in the other Contracting State.

 2. The term ''permanent establishment'' includes especially:

(a) a place of management;

(b) a branch;

(c) an office;

(d) a factory;

(e) a workshop, and

(f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

 3. The term ''permanent establishment'' likewise encompasses a building site, a construction, assembly or installation project or supervisory activity in connection therewith, but only if such site, project or activities continue for a period of more than twelve months.

  4. Notwithstanding the preceding provisions of this Article the term ''permanent establishment'' shall be deemed not to include:

(a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

(b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

(d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;

(e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or an auxiliary character;

(f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (e).

 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person - other than an agent of an independent status to whom paragraph 6 applies - is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned Contracting State in respect of any activities which that person undertakes for the enterprise, if such a person has and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 which, if exercised through a fixed place of business would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

 6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status provided that such persons are acting in the ordinary course of their business.

 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise) shall not of itself constitute either company a permanent establishment of the other.

 Article 6

INCOME FROM IMMOVABLE PROPERTY

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

 2. The term ''immovable property'' shall have the meaning which it has under the law of the Contracting State in which the property in question is situated.

Ships, aircraft and road vehicles shall not be regarded as immovable property.

 The term ''immovable property'' shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of law respecting landed property apply, rights known as usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources.

 3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

 4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

 Article 7

BUSINESS PROFITS

   1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so mush of them as is attributable to that permanent establishment.

 2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

 3. In determining the profits of a permanent establishment, there shall be allowed as deduction expenses which are incurred for the purposes of the business of the permanent establishment, including executive and general administrative expenses, so incurred whether in the State in which the permanent establishment is situated or elsewhere.

 4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

 5. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

 6. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

 Article 8

INCOME FROM INTERNATIONAL TRAFFIC

1. Income from the operation in international traffic of ships or aircraft or road vehicles by the owners or lessees or chatterers and the rental of containers and related equipment which is incidental to the operation of ships or aircraft or road vehicles in international traffic shall be taxable only in the Contracting State of which these persons deriving such income are residents.

 2. The provisions of paragraph 1 shall also apply to income from the participation in a pool, anoint business or an international operating agency.

 Article 9

ASSOCIATED ENTERPRISES

1. where:

(a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or

(b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

 and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would have accrued to one of the enterprises, but, by reason of those conditions have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

 2. Where a Contracting State includes in the profits of an enterprise of that State - and taxes accordingly - profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are by the first-mentioned State claimed to be profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits, where that other State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.

 Article 10

DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

 2. However, such dividends may also be taxed in the State of which the company paying the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other State, the tax so charged shall not exceed:

(a) 5% of the gross amount of the dividends if the beneficial owner holds directly at least 10 % of the capital of the company paying the dividends and has invested their not less than the equivalent of 100.000 US dollars;

(b) 10% of the gross amount of the dividends in all other cases.

 3. The term ''dividends'' as used in this Article means income from shares, or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights, which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident.

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner being a resident of a Contracting State, carries on or carried on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment or performs independent personal services from a fixed base situated therein and the dividends are attributable to such permanent establishment or fixed base. In such case the provisions of Articles 7 or 15 of this Agreement, as the case may be, shall apply.

 5. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.

 Article 11

INTEREST

 1. Interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

 2. The term ''interest'' as used in this Agreement means income from debt- claims of every kind, and in particular income from government securities, bonds and debentures, including premiums and prizes attaching to such securities, bonds or debentures.

 3. The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on or carried on business in the other Contracting State in which the interest arises, through a permanent establishment or performs independent personal services from a fixed base situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Articles 7 or 15 of this Agreement, as the case may be, shall apply.

 4. Interest shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a political subdivision of that State, a local authority thereof or a resident of that Contracting State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or a fixed base, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

 5. Where, by reason of a special relationship between the payer and the beneficial owner of interest or between both of them and some other Person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

 Article 12

ROYALTIES

 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

 2. The term ''royalties'' as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, of any copyright of literary, artistic or scientific work, including cinematograph films and recordings for radio and television broadcasting, any patent, know-how, computer programs, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience.

 3. The provisions of paragraph 1 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State carries on business in the other Contracting State in which the royalties arise, through a permanent establishment or performs independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Articles 7 or 15, as the case may be, shall apply.

 4. Royalties shall be deemed to arise in a Contracting State when the payer is the Government of that Contracting State, a political subdivision of that State, a local authority thereof or a resident of that Contracting State. Where, however, the person paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

 5. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

 Article 13

GAINS FROM ALIENATION OF PROPERTY

 1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

 2. Gains derived from the alienation of movable property forming part of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State, or of movable property pertaining to a fixed base available to a resident of a State in the other State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment or of such fixed base, may be taxed in that other State.

 3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft or road vehicles operated in international traffic or movable property pertaining to such operation shall be taxable only in the Contracting State of which the alienator is a resident.

 4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.

 Article 14

INCOME FROM INDEPENDENT PERSONAL SERVICES

 1. Income derived by an individual who is a resident of a Contracting State from the performance of professional services or other activities of an independent character shall be taxable only in that State, unless:

(a) such services are performed or were performed in the other Contracting State and the income is attributable to a fixed base which the individual has or had regularly available to him in that other State; or

(b) if the stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any twelve month period.

In that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.

 2. The term ''professional services'' includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architects, dentists and accountants.

 Article 15

INCOME FROM EMPLOYMENT

 1. Subject to the provisions of Articles 17, 19, 20 and 21 salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived there from may be taxed in that other State.

 2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

(a) the recipient is present in the other Contracting State for a period or periods not exceeding in the aggregate 183 days in any twelve month period; and

(b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Contracting State; and

(c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other Contracting State.

 3. Notwithstanding the provisions of paragraphs 1 and 2, salaries and other remuneration derived by the resident of a Contracting State for work carried out in the other Contracting State shall not be taxed in that other State if it is performed by persons:

(a) in connection with a building site, a construction, assembly or installation project in accordance with paragraph 3 of Article 5 of this Agreement;

(b) in respect of remuneration derived as a journalist or a correspondent provided that such payment is made from sources of the State in which he is a resident for a period of two years from the date of his arrival to the other Contracting State.

 4. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic shall be taxable only in the Contracting State in which the profits of the enterprise are taxable according to Article 8 of this Agreement.

Article 16

DIRECTORS' FEES

 Directors' fees and other similar payments derived by a resident of a Contracting State in his capacity as a member of the board of directors of a company which is a resident of the other Contracting State may be taxed in that other State.

 Article 17

INCOME OF ARTISTES AND SPORTSMEN

1. Notwithstanding the provisions of Articles 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 a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State.

 2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or the sportsman himself but to another person, that income may, notwithstanding the provisions of Articles 7, 15 and 16, be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised.

 3. The provisions of paragraphs 1 and 2 shall not apply to income derived from activities performed in a Contracting State by entertainers or sportsmen if the visit to that State is substantially supported by the other Contracting State or a political subdivision or local authority thereof or by funds basically financed by those authorities. In such a case the income shall be taxable only in the State of which the entertainer or sportsman is a resident.

 Article 18

INCOME FROM GOVERNMENT SERVICE

 1. (a) Remuneration, other than a pension, paid by the Government of a Contracting State, a political subdivision or a local authority thereof to an individual in respect of services rendered to that State, subdivision or local authority thereof shall be taxable only in that State.

(b) However, such remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the recipient is a resident of that State who:

(i) is a national of that State; or

(ii) did not become a resident of that State solely for the purpose of rendering the services.

 2. The provisions of paragraph 1 of this Article shall not apply and the provisions of Article 16 and 17 shall apply to remuneration paid by a Contracting State, a political subdivision or a local authority thereof if such remuneration is paid in respect of services rendered in connection with business activities carried on in the other Contracting State.

Article 19

PENSIONS

Pensions and other similar remunerations paid from sources in a Contracting State in consideration of past employment may be taxed only in that State.

 Article 20

payments TO STUDENTS, APPRENTICES,

RESEARCHERS, PROFESSORS AND TEACHERS

Payments received by a student, an apprentice, a researcher, a professor or a teacher who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training, teaching and researching, and assigned for the purpose of their maintenance and education shall not be taxed in the first- mentioned Contracting State provided that such payments arise from sources in the other State.

 Article 21

CAPITAL

 1. Capital represented by immovable property referred to in Article 6, owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State.

 2. Capital represented by movable property forming part of the assets of a permanent establishment which a resident of a Contracting State has in the other Contracting State or by movable property pertaining to a fixed base available to such resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, may be taxed in that other State.

 3. Capital represented by ships, aircraft and road vehicles operated in international traffic, owned by a resident of a Contracting State, as well as by other kinds of movable property in connection with the operation of such ships, aircraft or road vehicles shall be taxable only in that State.

 4. A11 other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 22

OTHER INCOME

 1. 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.

 2. The provisions of paragraph 1 shall not apply to income, other than income from immovable property as defined in paragraph 2 of Article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

Article 23

ELIMINATION OF DOUBLE TAXATION

1. In the case of Russia double taxation is eliminated as follows:

Where a resident of Russia derives income or owns capital which, in accordance with the provisions of this Agreement, may be taxed in ______________, the amount of tax on that income or capital payable in ___________, may be credited against the tax levied in Russia. The amount of credit, however, shall not exceed the amount of the tax of Russia on that income or capital computed in accordance with its taxation laws and regulations.

 2. In the case of __________ double taxation is eliminated as follows:

Article 24

NON-DISCRIMINATION

 1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith which is 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 also apply to persons who are not residents of one or both of the Contracting States.

 2. The taxation of 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.

 3. Except where the provisions of paragraph 1 of Article 9, paragraph 7 of Article 11 or paragraph 5 of Article 12, 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 conditions 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 with a resident of the first-mentioned State.

 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 State to any taxation or any requirement connected therewith which is more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected.

 Article 25

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 in taxation not in accordance with the provisions of this Agreement, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of the Contracting State of which he is a resident. The case must be presented within two years from the first notification of the action resulting in taxation not in accordance with the provisions of this Agreement.

 2. The competent authority shall Endeavour, 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 Agreement. Any agreement reached shall be implemented notwithstanding any time limits provided for in the domestic law of the Contracting States.

 3. The competent authorities of the Contracting States shall Endeavour to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Agreement.

 4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs.

 Article 26

EXCHANGE OF INFORMATION

 1. The competent authorities of the Contracting States shall exchange such information as is necessary for carrying out the provisions of this Agreement or of the domestic laws of the Contracting States concerning taxes covered by this Agreement insofar as the taxation there under is not contrary to the Agreement. The exchange of information is not restricted by Article 1. Any information received by a Contracting State shall be treated as confidential 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 the taxes covered by the Agreement. 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 impose on a Contracting State the obligation: construed so as to

(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 professional secret or trade process, or information, the disclosure of which would be contrary to public policy.

 Article 27

ASSISTANCE IN COLLECTION

 1. The Contracting States undertake to lend assistance to each other in the collection of taxes owed by a taxpayer to the extent that the amount thereof has been finally determined and became finally payable according to the laws of the Contracting State making the request for assistance.

   2. A request for assistance shall only be made by a Contracting State to the extent that sufficient property of the taxpayer owing the taxes is not available in that State for the recovery of the taxes owed.

3. It is understood that unless otherwise agreed by the competent authorities of both Contracting States:

(a) ordinary costs incurred by a Contracting State in providing assistance shall be borne by that State;

(b) extraordinary costs incurred by a Contracting State in providing assistance shall be borne by the other State and shall be payable regardless of the amount collected on its behalf by that other State.

 4. In no case shall this Article be construed so as to impose on a Contracting State the obligation to carry out measures at variance with the laws, administrative practices, or public policy of either Contracting State.

 Article 28

MEMBERS OF DIPLOMATIC MISSIONS AND

CONSULAR POSTS

 Nothing in this Agreement shall affect the fiscal privileges of members of diplomatic missions or consular posts under the rules of general international law or under the provisions of special agreements.

 Article 29

ENTRY INTO FORCE

 1. Each of the Contracting States shall notify to the other the completion of the procedures required by its law for the bringing into force of this Agreement.

2. The Agreement shall enter into force on the date of receipt of the later of these notifications and shall thereupon have effect:

- in respect of tax withheld at source, for amounts paid or credited on or after the first day of January in the calendar year next following that in which the Agreement enters into force and subsequent years; and

 - in respect of other taxes on income and on capital, for taxation years beginning on or after the first day of January in the calendar year next following that in which the Agreement enters into force and subsequent years.

 Article 30

TERMINATION

 This Agreement shall remain in force indefinitely but either Contracting State may terminate the Agreement through diplomatic channels, by giving to the other Contracting State written notice of termination at any time after the expiration of five years from the date on which the Agreement enters into force. In such event, the Agreement shall cease to have effect in respect of income derived or capital owned on or after the first day of January of the calendar year next following that in which the notice of termination is given.

Done at                         on                     of 200, in duplicate, in the Russian,_________ and English languages, all texts being equally authentic.

In case of divergence between the Russian and __________ texts, the English text shall be the operative one.

FOR THE GOVERNMENT OF                                                    FOR THE GOVERNMENT OF

THE RUSSIAN FEDERATION                                                    ________________________