Taxation of technical services: source-state withholding limited where beneficial owner resides elsewhere, subject to PE exceptions. Fees for technical services paid to a resident of the other Contracting State may be taxed in the recipient's State, while the source State may also tax such fees but with a ceiling where the beneficial owner is resident in the other State; competent authorities will determine application. The Article defines fees for technical services as payments for managerial, technical or consultancy services (including personnel), excludes Articles 15 and 16 services, treats source as payer residence subject to attribution to a permanent establishment or fixed base, and limits taxation to an arm's-length amount where special relationships inflate payments.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of technical services: source-state withholding limited where beneficial owner resides elsewhere, subject to PE exceptions.
Fees for technical services paid to a resident of the other Contracting State may be taxed in the recipient's State, while the source State may also tax such fees but with a ceiling where the beneficial owner is resident in the other State; competent authorities will determine application. The Article defines fees for technical services as payments for managerial, technical or consultancy services (including personnel), excludes Articles 15 and 16 services, treats source as payer residence subject to attribution to a permanent establishment or fixed base, and limits taxation to an arm's-length amount where special relationships inflate payments.
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