Royalties and technical service fees may be taxed in source and residence states, with beneficial owner and PE exceptions. Royalties and fees for technical services may be taxed in both the source State and the residence State, but source taxation is limited where the recipient is the beneficial owner resident in the other Contracting State. The Article defines royalties to include payments for use of intellectual property and information, and defines fees for technical services to include managerial, technical or consultancy services. Exceptions apply when the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected with it, in which case other treaty provisions govern. Related party payments are adjusted to an arm's length amount for treaty application.
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 service fees may be taxed in source and residence states, with beneficial owner and PE exceptions.
Royalties and fees for technical services may be taxed in both the source State and the residence State, but source taxation is limited where the recipient is the beneficial owner resident in the other Contracting State. The Article defines royalties to include payments for use of intellectual property and information, and defines fees for technical services to include managerial, technical or consultancy services. Exceptions apply when the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected with it, in which case other treaty provisions govern. Related party payments are adjusted to an arm's length amount for treaty application.
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