Royalties and technical service fees may be taxed in source state, subject to a withholding cap and PE exceptions. Royalties and fees for technical services payable to a resident of the other Contracting State may be taxed in the recipient's State but may also be taxed in the State where they arise, subject to a withholding cap when the beneficial owner is resident of the other State. Definitions cover payments for use of intellectual property, equipment, information and managerial/technical consultancy services. The withholding rule does not apply where the beneficial owner operates through a permanent establishment or fixed base in the source State and the payments are effectively connected; deemed source and special relationship (arm's length) adjustments are provided.