Taxation of royalties and technical service fees: source-state tax limited when beneficial owner is resident in the other Contracting State. Article 12 sets rules for taxation of royalties and fees for technical services: such payments may be taxed in the recipient's State and also in the source State, but where the beneficial owner is resident in the other Contracting State the source tax is limited to 10 per cent of the gross amount. Source is determined by payer residence or by the location of the payer's permanent establishment or fixed base that bears the liability. Payments connected with a permanent establishment or fixed base, or where the beneficial owner carries on business or performs services from such a base, are governed by Articles 7 or 14. Related-party excess payments are limited to the arm's-length amount for treaty relief.
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 tax limited when beneficial owner is resident in the other Contracting State.
Article 12 sets rules for taxation of royalties and fees for technical services: such payments may be taxed in the recipient's State and also in the source State, but where the beneficial owner is resident in the other Contracting State the source tax is limited to 10 per cent of the gross amount. Source is determined by payer residence or by the location of the payer's permanent establishment or fixed base that bears the liability. Payments connected with a permanent establishment or fixed base, or where the beneficial owner carries on business or performs services from such a base, are governed by Articles 7 or 14. Related-party excess payments are limited to the arm's-length amount for treaty relief.
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