Common use of Interpretation of the Convention Clause in Contracts

Interpretation of the Convention. It is understood that provisions of the Convention which are drafted according to the corresponding provisions of the OECD-Model Convention on Income and on Capital or the United Nations Model Double Taxation Convention between developed and developing countries with respect to taxes on income and on capital shall generally be expected to have the same meaning as expressed in the OECD or UN Commentaries thereon. The understanding in the preceding sentence will not apply with respect to the following: a) any reservations or observations to the OECD or UN Model or its Commentaries by either Contracting State; b) any contrary interpretations in this Protocol; c) any contrary interpretation agreed to by the competent authorities after the entry into force of the Convention. The OECD or UN Commentaries - as they may be revised from time to time - constitute a means of interpretation in the sense of the Vienna Convention of 23 May 1969 on the Law of Treaties. In case of any divergence in the interpretation as expressed in the commentaries of the OECD and UN Model, a common interpretation would have to be sought by mutual agreement according to Article 26 if necessary.