Article 12B - Income from Automated Digital Services

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....utomated digital services arising in a Contracting State may also be taxed in the Contracting State in which it arises and according to the laws of that State, but * if the beneficial owner of the income is a resident of the other Contracting State, the tax so charged shall not exceed ___ % of the gross amount of the payments underlying the income from automated digital services. * the above percentage is to be established through bilateral negotiations. [ Para 2 of Article 12B ] Exception of Para 2 of Article 12B * If the beneficial owner of the income from automated digital services, being a resident of a Contracting State, requests the other Contracting State where such income arises, to subject its qualified profits from automate....

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....ome from automated digital services arises, the provisions of this paragraph shall not apply; in such a case, the provisions of paragraph 2 shall apply. [ Para 3 of Article 12B ] Meaning of Multinational Enterprises Group for the purpose of para 3 of Article 12B * "Multinational Enterprise Group" means any "group" that includes two or more enterprises, the tax residence for which is in different jurisdictions. * The term "group" means a collection of enterprises related through ownership or control such that it is either required to prepare Consolidated Financial Statements for financial reporting purposes under applicable accounting principles or would be so required if equity interests in any of the enterprises were traded on a publi....

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.... * if the payments underlying the income from automated digital services qualify as "royalties" or "fees for technical services" under Article 12 or Article 12A as the case may be. [ Para 7 of Article 12B ] Income deemed to be arise in Contracting State * Income from automated digital services shall be deemed to arise in a Contracting State * if the underlying payments for the income from automated digital services are made by a resident of that State or * if the person making the underlying payments for the automated digital services, whether that person is a resident of a Contracting State or not, has in a Contracting State * a permanent establishment or a fixed base in connection * with which the obligation to make the payme....