Fees for technical services: source taxation allowed, capped withholding where recipient is beneficial owner; PE-linked income excluded. Fees for technical services arising in a Contracting State may be taxed in the State where they arise, but if the recipient is the beneficial owner the tax charged in that State shall not exceed 10 per cent of the gross amount. The term covers managerial, technical or consultancy services including provision of personnel, excluding services covered by other Articles. If the beneficial owner has a permanent establishment or fixed base in the source State and the fees are effectively connected with it, business profits or independent services provisions apply. Special-relationship pricing adjustments limit treaty 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.
Fees for technical services: source taxation allowed, capped withholding where recipient is beneficial owner; PE-linked income excluded.
Fees for technical services arising in a Contracting State may be taxed in the State where they arise, but if the recipient is the beneficial owner the tax charged in that State shall not exceed 10 per cent of the gross amount. The term covers managerial, technical or consultancy services including provision of personnel, excluding services covered by other Articles. If the beneficial owner has a permanent establishment or fixed base in the source State and the fees are effectively connected with it, business profits or independent services provisions apply. Special-relationship pricing adjustments limit treaty application to the arm's-length amount.
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