Direct Tax Avoidance Agreements

SUDAN

Article 23 : Methods for Elimination of Double Taxation- 1. Where a resident of a Contracting State derives income from the other Contracting State which in accordance with the provisions of this Agreement, may be taxed in the other Contracting State, the first-mentioned Contracting State shall allow as a deduction from the tax on the income of that resident an amount equal to the income-tax paid in that other Contracting State. Such deduction shall not however exceed that part of the income-tax as computed before the deduction is given, which is attributable, as the case may be to the income which may be taxed in that other Contracting State.

2. Where in accordance with any provision of the Agreement income derived by a resident of a Contracting State is exempted from tax in that Contracting State, such State may nevertheless, in calculating the amount of tax on the remaining income of such resident, take into account the exempted income.

3. The tax payable in the Contracting State mentioned in paragraphs 1 and 2 of this Article shall be deemed to include the tax which would have been payable but for the tax incentives gained under the laws of the Contracting State and which are designed to promote economic development.