Royalties and fees for technical services: source-state limited taxation with beneficial owner cap and permanent establishment exception. Royalties and fees for technical services arising in one Contracting State and paid to a resident of the other may be taxed in the recipient's State, while the source State may also tax such payments subject to a capped rate when the beneficial owner is resident of the other Contracting State. The Article defines royalties and fees for technical services broadly, excludes its limitation where income is effectively connected to a permanent establishment or fixed base in the source State, deems source of income by payer residence or by the permanent establishment bearing the liability, and requires arm's-length adjustments where special relationships inflate payments.
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 fees for technical services: source-state limited taxation with beneficial owner cap and permanent establishment exception.
Royalties and fees for technical services arising in one Contracting State and paid to a resident of the other may be taxed in the recipient's State, while the source State may also tax such payments subject to a capped rate when the beneficial owner is resident of the other Contracting State. The Article defines royalties and fees for technical services broadly, excludes its limitation where income is effectively connected to a permanent establishment or fixed base in the source State, deems source of income by payer residence or by the permanent establishment bearing the liability, and requires arm's-length adjustments where special relationships inflate payments.
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 
