Royalties and technical service fees: source taxation permitted, limited by treaty withholding and nexus exceptions. Royalties and fees for technical services paid to a resident of the other Contracting State may be taxed in the recipient's State of residence and in the source State; where the recipient is the beneficial owner the source State's tax on such payments shall not exceed 10 per cent of the gross amount. 'Royalties' includes payments for use of copyrights, patents, trademarks, designs, plans, secret formulas, processes, equipment or information; 'fees for technical services' means payments for managerial, technical or consultancy services, excluding certain activities. If the beneficial owner has a permanent establishment or fixed base in the source State and the payment is effectively connected with it, provisions on business profits or independent personal services apply. Special-relationship adjustments limit treaty application 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.
Royalties and technical service fees: source taxation permitted, limited by treaty withholding and nexus exceptions.
Royalties and fees for technical services paid to a resident of the other Contracting State may be taxed in the recipient's State of residence and in the source State; where the recipient is the beneficial owner the source State's tax on such payments shall not exceed 10 per cent of the gross amount. "Royalties" includes payments for use of copyrights, patents, trademarks, designs, plans, secret formulas, processes, equipment or information; "fees for technical services" means payments for managerial, technical or consultancy services, excluding certain activities. If the beneficial owner has a permanent establishment or fixed base in the source State and the payment is effectively connected with it, provisions on business profits or independent personal services apply. Special-relationship adjustments limit treaty application to arm's-length amounts.
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