Taxation of royalties and technical service fees: source state may tax, residence subject to treaty cap on withholding. Royalties and fees for technical services arising in one Territory and paid to a resident of the other may be taxed in the payee's residence, but the source Territory may also tax such payments subject to a treaty withholding limitation. Definitions cover payments for use of intellectual property and for managerial, technical or consultancy services. The Article excludes payments effectively connected with a permanent establishment or fixed base, in which case business profits or independent personal services rules apply. Source rules deem payments to arise in the payer's Territory unless attributable to a permanent establishment or fixed base. Related-party excesses are adjusted to arm's length.
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 royalties and technical service fees: source state may tax, residence subject to treaty cap on withholding.
Royalties and fees for technical services arising in one Territory and paid to a resident of the other may be taxed in the payee's residence, but the source Territory may also tax such payments subject to a treaty withholding limitation. Definitions cover payments for use of intellectual property and for managerial, technical or consultancy services. The Article excludes payments effectively connected with a permanent establishment or fixed base, in which case business profits or independent personal services rules apply. Source rules deem payments to arise in the payer's Territory unless attributable to a permanent establishment or fixed base. Related-party excesses are adjusted to arm's length.
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