Dividend taxation limits under DTAA: source-state withholding capped for qualifying corporate shareholders, exceptions for permanent establishments. Article 10 permits both residence-state and source-state taxation of dividends but limits source-state withholding by reference to qualifying corporate beneficial ownership and shareholding conditions and by reference to whether the payer is an industrial undertaking. It defines dividends and sets out categories of industrial undertaking. Where the beneficial owner's holding is effectively connected with a permanent establishment or a fixed base in the source State, the Article's dividend withholding rules do not apply and the rules on business profits or independent personal services govern; the Article also constrains taxation of undistributed profits by the other State.
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.
Dividend taxation limits under DTAA: source-state withholding capped for qualifying corporate shareholders, exceptions for permanent establishments.
Article 10 permits both residence-state and source-state taxation of dividends but limits source-state withholding by reference to qualifying corporate beneficial ownership and shareholding conditions and by reference to whether the payer is an industrial undertaking. It defines dividends and sets out categories of industrial undertaking. Where the beneficial owner's holding is effectively connected with a permanent establishment or a fixed base in the source State, the Article's dividend withholding rules do not apply and the rules on business profits or independent personal services govern; the Article also constrains taxation of undistributed profits by the other State.
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