Royalties and technical service fees may be taxed in the source state, with capped tax where recipient is beneficial owner. Royalties and fees for technical services arising in one Contracting State and paid to a resident of the other may be taxed in the recipient's State but may also be taxed in the State of source; if the recipient is the beneficial owner the source tax is limited by a cap. The Article defines royalties to include payments for copyrights, patents, know how, software and technical information, and defines fees for technical services to include managerial, technical or consultancy services. Payments effectively connected with a permanent establishment or fixed base are taxed under the provisions governing that establishment, and related party excess amounts are limited to arm's length consideration.
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 may be taxed in the source state, with capped tax where recipient is beneficial owner.
Royalties and fees for technical services arising in one Contracting State and paid to a resident of the other may be taxed in the recipient's State but may also be taxed in the State of source; if the recipient is the beneficial owner the source tax is limited by a cap. The Article defines royalties to include payments for copyrights, patents, know how, software and technical information, and defines fees for technical services to include managerial, technical or consultancy services. Payments effectively connected with a permanent establishment or fixed base are taxed under the provisions governing that establishment, and related party excess amounts are limited to arm's length consideration.
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