§

2, Where under the present Convention any income ig
exempt from tax in one of the territories if (with or without
other conditions) it is sabjeet to tax in the other territory, and
that income is subject to tax in that other territory by reference
to the amount thereof which is remitted to or recetved in that
other territory, the exemption to be allowed under this Coven-
vention in the first-mentioned ter riiory stall apply only to the
amount so remitted or received.

oad

3. In the application of the provisions of the present
Convention by one of the Contracting Parties any term
not otherwise defined shall, unless the context otherwise
.eqttires, have the meaning whieh it has under the laws in force
in the territory of that Party relauiny to the taxes which are
the subject of the present Convention.

Articue IIT

1. The industrial or commercial profits of a United
Kingdom enterprise shall not be subject to Norwegian tax
unless the enterprise carries on a trade or business in Norway
through permanent establishment situated therein. Jf it
carries on a trade or business as aforesaid, tax may be im-
posed on those profits by Norway, but only on so much of them
as is attributable to that permanent establishinent.

2. The industrial or commercial profits of a Norwegian
enter) vise shall not be subject to United Kingdom tax unless
the enterprise carries on a trade or business in the United King-
dom through a permanent establishment situated therein. Ifit
carries on a trade or business as aforesaid, tax may be imposed
on those profits by the United Kingdom, but only on 60 much
of them as is attribatable to that permanent establishment.

2, Where an enterprise of one of the territories carries
on a trade or business in the other territory through a_per-
manent estublishment situated therein, there shall be attributed
to that permanent establishment tre industrial or commercial
profits whieh it might be expected to derive in that other
territory if it were an independent enterprise engaged in the
same or similar activities under the same or similar conditions
and dealing at arm’s length with the enterprise of which it is a
permanent establis hment.

4. Where an enterprise of one of the territories derives
profits, uuder contracts concluded in that territory, from sales
of yoods or merchandise stocked in a warehouse in the other