Royalties and technical service fees: source taxation permitted with a limited withholding cap when beneficial owner status applies. Royalties and fees for technical services arising in one Contracting State may be taxed in the source State but, where the recipient is the beneficial owner, source tax is limited; definitions set royalties to include payments for use of intellectual property, transmissions and technical information, and fees for technical services to include managerial, technical or consultancy services. The source taxation rules do not apply if the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected with that presence; special-relationship provisions require arm's-length adjustments, with excess taxable under domestic law.
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 with a limited withholding cap when beneficial owner status applies.
Royalties and fees for technical services arising in one Contracting State may be taxed in the source State but, where the recipient is the beneficial owner, source tax is limited; definitions set royalties to include payments for use of intellectual property, transmissions and technical information, and fees for technical services to include managerial, technical or consultancy services. The source taxation rules do not apply if the beneficial owner has a permanent establishment or fixed base in the source State and the payments are effectively connected with that presence; special-relationship provisions require arm's-length adjustments, with excess taxable under domestic law.
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