Royalties and technical service fees: source-state tax allowed with capped withholding when beneficial owner status applies. Payments described as royalties and fees for technical services may be taxed by the source state but, if received by the beneficial owner, source taxation shall not exceed a ten per cent withholding rate. The Article defines royalties and fees for technical services, excludes services covered elsewhere, and provides that source-state withholding does not apply where the beneficial owner's payments are effectively connected with a permanent establishment or fixed base in the source state, in which case Article 7 or Article 14 applies. Amounts exceeding arm's-length remuneration due to special relationships remain 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-state tax allowed with capped withholding when beneficial owner status applies.
Payments described as royalties and fees for technical services may be taxed by the source state but, if received by the beneficial owner, source taxation shall not exceed a ten per cent withholding rate. The Article defines royalties and fees for technical services, excludes services covered elsewhere, and provides that source-state withholding does not apply where the beneficial owner's payments are effectively connected with a permanent establishment or fixed base in the source state, in which case Article 7 or Article 14 applies. Amounts exceeding arm's-length remuneration due to special relationships remain taxable under domestic law.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
