Technical fees: source taxation permitted with a capped gross-basis withholding, subject to PE and arm's length adjustments. Technical fees are payments to non-employees for technical, managerial or consultancy services; while taxable in the resident State, the source State may also tax them but, if the recipient is the beneficial owner, withholding on the gross amount is capped at ten percent. Exceptions apply where fees are effectively connected with a permanent establishment or independent personal services in the source State, in which case business profits or personal services rules govern. Sourcing includes payments by the State or a resident, and related-party excesses are limited to arm's-length amounts for treaty treatment.
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.
Technical fees: source taxation permitted with a capped gross-basis withholding, subject to PE and arm's length adjustments.
Technical fees are payments to non-employees for technical, managerial or consultancy services; while taxable in the resident State, the source State may also tax them but, if the recipient is the beneficial owner, withholding on the gross amount is capped at ten percent. Exceptions apply where fees are effectively connected with a permanent establishment or independent personal services in the source State, in which case business profits or personal services rules govern. Sourcing includes payments by the State or a resident, and related-party excesses are limited to arm's-length amounts for treaty treatment.
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