Technical fees: treaty permits source-state taxation with limited withholding where beneficial owner status and PE exceptions apply. Article 14 permits source-State taxation of technical fees arising in a Contracting State but limits the source-State withholding where the recipient is the beneficial owner to the substituted notified rate; it defines technical fees as payments for technical, managerial or consultancy services (other than to employees). The Article excludes this regime when fees are effectively connected to a permanent establishment or fixed base, directs application of Article 7 or 16 in that case, deems source based on the payer or PE/fixed base bearing the liability, and requires arm's-length adjustment where special relationships inflate payment amounts.
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: treaty permits source-state taxation with limited withholding where beneficial owner status and PE exceptions apply.
Article 14 permits source-State taxation of technical fees arising in a Contracting State but limits the source-State withholding where the recipient is the beneficial owner to the substituted notified rate; it defines technical fees as payments for technical, managerial or consultancy services (other than to employees). The Article excludes this regime when fees are effectively connected to a permanent establishment or fixed base, directs application of Article 7 or 16 in that case, deems source based on the payer or PE/fixed base bearing the liability, and requires arm's-length adjustment where special relationships inflate payment amounts.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
