Fees for technical services: source-state taxation permitted but limited when recipient is beneficial owner; PE connection alters treatment.

Article 14 permits source-state taxation of fees for technical services arising in a Contracting State, but limits such taxation when the recipient is the beneficial owner. Fees for technical services are payments (other than to employees) for technical, managerial or consultancy services. Fees effectively connected with a permanent establishment or independent personal services are taxed under the relevant business or personal services provisions. Deemed-source rules and an arm's-length adjustment limit the Article's application where special relationships affect the fee amount.

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