Article 23 Elimination of Double Taxation

1. In the case of Austria, double taxation shall be avoided as follows:

a) Where a resident of Austria derives income or owns capital which, in accordance with the provisions of this Convention may be taxed in the Russian Federation, Austria shall, subject to the provisions of subparagraphs b), c) and d), exempt such income or capital from tax.

b) Where a resident of Austria derives items of income which, in accordance with the provisions of Article 10, may be taxed in the Russian Federation, Austria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in the Russian Federation. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given which is attributable to such items of income derived from the Russian Federation.

c) Dividends covered by paragraph 2 subparagraph a) of Article 10 and paid by a company which is a resident of the Russian Federation to a company which is a resident of Austria shall, subject to the relevant provisions of the domestic law of Austria but irrespective of any deviating minimum holding requirements of that law, be exempt from tax in Austria.

d) Where in accordance with any provisions of this Convention income derived or capital owned by a resident of Austria is exempt from tax in Austria, Austria may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital.

e) Income derived by a resident of Austria which is considered by Austria to be taxable under this Convention in the Russian Federation may nevertheless be taxed in Austria if, after the conduct of a mutual agreement procedure, the Russian Federation does not tax on that income by virtue of this Convention.

2. In the case of the Russian Federation, double taxation shall be avoided as follows:

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