Royalties and technical services: source taxation subject to limited withholding and permanent establishment linkage. Royalties and fees for technical services may be taxed in the recipient's State, while the source State may also tax them under its laws subject to a limited withholding tax when the beneficial owner is resident in the other State. Royalties are defined to cover payments for use of copyrights, patents, trademarks, designs, equipment and technical information; fees for technical services cover managerial, technical or consultancy services and provision of technical personnel. If the beneficial owner has a permanent establishment or fixed base to which the right or services are effectively connected, rules for business profits or independent personal services apply. Related-party excess payments are limited to arm's-length amounts for treaty purposes.
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 services: source taxation subject to limited withholding and permanent establishment linkage.
Royalties and fees for technical services may be taxed in the recipient's State, while the source State may also tax them under its laws subject to a limited withholding tax when the beneficial owner is resident in the other State. Royalties are defined to cover payments for use of copyrights, patents, trademarks, designs, equipment and technical information; fees for technical services cover managerial, technical or consultancy services and provision of technical personnel. If the beneficial owner has a permanent establishment or fixed base to which the right or services are effectively connected, rules for business profits or independent personal services apply. Related-party excess payments are limited to arm's-length amounts for treaty purposes.
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