Art. 1 - 4

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

1.

This Convention shall apply to taxes on income and on capital imposed on behalf of a 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 and salaries paid by enterprises, as well as taxes on capital appreciation.

3.

The existing taxes to which the Convention shall apply are in particular:

(a)

in Austria:

(i)

the income tax;

(ii)

the corporation tax;

(iii)

the land tax;

(iv)

the tax on agricultural and forestry enterprises and

(v)

the tax on the value of vacant plots

(hereinafter referred to as ``Austrian taxes'');

(b)

in the Russian Federation:

(i)

the tax on profits of enterprises and organisations;

(ii)

the tax on income of individuals;

(iii)

the tax on property of enterprises and

(iv)

the tax on property of individuals

(hereinafter referred to as ``Russian taxes'').

4.

The Convention shall apply also to any identical or substantially similar taxes which are imposed after the date of signature of the Convention in addition to, or in place of, the existing taxes. The competent authorities of the Contracting States shall notify each other of any significant changes which have been made in their respective taxation laws.

1.

For the purposes of this Convention, unless the context otherwise requires:

(a)

the terms ``a Contracting State'' and ``the other Contracting State'' mean Austria or the Russian Federation, as the context requires;

(b)

the term ``Austria'' means the Republic of Austria and, when used in a geographical sense, means its territory;

(c)

the term ``the Russian Federation'' means the Russian Federation and, when used in a geographical sense, means its territory;

(d)

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

(e)

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

(f)

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;

(g)

the term ``international traffic'' means any transport by a ship, boat or aircraft operated by an enterprise of a Contracting State, except when the ship, boat or aircraft is operated solely between places in the other Contracting State;

(h)

the term ``competent authority'' means:

(i)

in the case of Austria, the Federal Minister of Finance or his authorised representative;

(ii)

in the case of the Russian Federation, the Ministry of Finance or its authorised representative;

(i)

the term ``national'' means:

(i)

any individual possessing the citizenship of a Contracting State;

(ii)

any legal person, partnership or association deriving its status as such from the laws in force in a Contracting State.

2.

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

1.

For the purposes of this Convention, the term ``resident of a Contracting State'' means any person who, under the law of that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation 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 State in which he has a permanent home available to him; if he has a permanent home available to him in both 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 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 he is a national of both States or of neither of them, the competent authorities of the Contracting States shall endeavour to 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.

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