Royalties and technical service fees: taxable in source state, with reduced withholding where recipient is beneficial owner. Royalties and fees for technical services paid to a resident of the other Contracting State may be taxed in both the residence and source States; where the recipient is the beneficial owner, source taxation is permitted subject to a reduced withholding ceiling. Royalties include payments for use of rights in copyrights, patents, trademarks, designs, plans, secret formulas, processes, equipment and related information. Fees for technical services cover managerial, technical or consultancy services including personnel, excluding Articles 14 and 15 services. If the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected, Articles 7 or 14 apply. Special-relationship adjustments limit application to the arm's length amount.
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: taxable in source state, with reduced withholding where recipient is beneficial owner.
Royalties and fees for technical services paid to a resident of the other Contracting State may be taxed in both the residence and source States; where the recipient is the beneficial owner, source taxation is permitted subject to a reduced withholding ceiling. Royalties include payments for use of rights in copyrights, patents, trademarks, designs, plans, secret formulas, processes, equipment and related information. Fees for technical services cover managerial, technical or consultancy services including personnel, excluding Articles 14 and 15 services. If the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected, Articles 7 or 14 apply. Special-relationship adjustments limit application to the arm's length amount.
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