Taxation of cross-border interest: source-state withholding limited for resident beneficial owners; PE-connected interest governed by business profit rules.

Article 11 permits taxation of interest in the recipient's residence state but allows source-state taxation subject to ceilings where the beneficial owner resides in the other Contracting State. It defines interest to cover income from all debt-claims, government securities, bonds and debentures, excluding amounts treated as dividends under Article 10. Treaty withholding limits do not apply when the beneficial owner's interest is effectively connected to a permanent establishment or fixed base in the source state, where Articles on business profits or independent personal services govern. Related-party excess interest is adjusted to an arm's-length amount, with the excess taxable under domestic law.

---

---

---