Royalties and technical service fees: source taxation permitted, withholding limited, with permanent establishment exceptions and deemed-source rules. Article 12 allocates taxing rights over royalties and fees for technical services: source taxation is permitted but limited when the beneficial owner resides in the other Contracting State; definitions clarify the scope of royalties and technical service fees; payments effectively connected with a permanent establishment or fixed base are excluded from the withholding rule and governed by business profits or independent personal services provisions; deemed-source rules determine when payments are treated as arising in a State; and amounts above arm's-length due to special relationships remain taxable under domestic law.
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.
Royalties and technical service fees: source taxation permitted, withholding limited, with permanent establishment exceptions and deemed-source rules.
Article 12 allocates taxing rights over royalties and fees for technical services: source taxation is permitted but limited when the beneficial owner resides in the other Contracting State; definitions clarify the scope of royalties and technical service fees; payments effectively connected with a permanent establishment or fixed base are excluded from the withholding rule and governed by business profits or independent personal services provisions; deemed-source rules determine when payments are treated as arising in a State; and amounts above arm's-length due to special relationships remain taxable under domestic law.
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