Dividends withholding cap protects resident beneficial owners by limiting source taxation under treaty and addressing PE connections. Article 10 allows dividend taxation in the recipient's State while permitting source State taxation of dividends paid by resident companies subject to a reduced withholding where the beneficial owner is resident in the other Contracting State; dividends include income from shares and similar profit-participating corporate rights. Where the beneficial owner's holding is effectively connected with a permanent establishment or fixed base in the source State, the provisions of business or independent personal services taxation apply instead, and the treaty limits source State taxation of dividends and corporate undistributed profits derived from the other State.
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.
Dividends withholding cap protects resident beneficial owners by limiting source taxation under treaty and addressing PE connections.
Article 10 allows dividend taxation in the recipient's State while permitting source State taxation of dividends paid by resident companies subject to a reduced withholding where the beneficial owner is resident in the other Contracting State; dividends include income from shares and similar profit-participating corporate rights. Where the beneficial owner's holding is effectively connected with a permanent establishment or fixed base in the source State, the provisions of business or independent personal services taxation apply instead, and the treaty limits source State taxation of dividends and corporate undistributed profits derived from the other State.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
