Fees for management, professional and technical services: taxable in source State with a limited withholding tax cap when beneficial owner is resident elsewhere. Fees for management, professional and technical services arising in one Contracting State and paid to a resident of the other may be taxed in that resident State, but the source State may tax them subject to a withholding tax cap if the beneficial owner is resident of the other State. The definition excludes employees and items in Articles 15 and 16. If fees are effectively connected with a permanent establishment or fixed base in the source State, provisions for business profits or independent personal services apply. Special relationship adjustments limit taxation to arm's length amounts.
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.
Fees for management, professional and technical services: taxable in source State with a limited withholding tax cap when beneficial owner is resident elsewhere.
Fees for management, professional and technical services arising in one Contracting State and paid to a resident of the other may be taxed in that resident State, but the source State may tax them subject to a withholding tax cap if the beneficial owner is resident of the other State. The definition excludes employees and items in Articles 15 and 16. If fees are effectively connected with a permanent establishment or fixed base in the source State, provisions for business profits or independent personal services apply. Special relationship adjustments limit taxation to arm's length amounts.
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