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ARTICLE 11
INTEREST

 

1.         Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

 

2.         However, such interest may be taced in the Contracting State in which it arises, and according to the laws of that State, but the tax so charged shall not exceed:

             (a)        10 per cent of the gross amount of the interest if it is

                          received by any financial institutaion (including an

                          insurance company);

             (b)        in all other cases, 25 per cent of the gross amount of the

                          interest.

 

3.         Notwithstanding the provisions of paragraph 2, interest arising in a Contracting State shall be exempt from tax in that State if

             (a)        the recipient of the interest is the government, or local

                          authority or the Central Bank of the other Contracting State;

                          or

             (b)        the interest is paid to any agency or institution including a

                          financial institution which may be agreed upon for the

                          purposes of this paragraph by the competent authorities of

                          the Contracting States.

 

4.         The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government securities and income from bonds or debentures, including premiums and prizes attaching to such securities, bonds or debentures, as well as income assimilated to income from money lent by the taxation laws of the Contracting State in which the income arises.

 

5.         The provisions of paragraphs 1 and 2 shall not apply if the recipient of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent estblishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-cliam in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base.  In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.

 

6.         Interest shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying  the  interest, whether he is a resident of a Contracting State or not, has  in a Contracting State a permanent establishment or fixed base in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by that permanent establishment or fixed base, then such interest, shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

 

7.         Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the interest paid, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

 

 

ARTICLE 12
ROYALTIES

1.         Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

 

2.         However, such royalties may be taxed in the Contracting State  in which they arise, but the tax so charged shall not exceed 10 per cent of the gross amount of royalties.

 

3.         The term “royalties” as used in this Article means payments of any kind received as a consideration for the alienation or the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films, phonographic records, and films or tapes for radio or television broadcasting), any patent, trade mark, design or model, plan, secret formula or process, or for the use of, or the right to use industrial,  commercial or scientific equipment, or for information concerning industrial, commercial or scientific experience.

 

4.         The provisions of paragraphs 1 and 2 shall not apply if the recipient of the royalties, being a resident of a Contracting State, carries on business in the other Contracting state in which the royalties arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment or fixed base. In such a case, the privisions of Article 7 or Article 14, as the case may be, shall apply.

 

5.         Royalties shall be deemed to arise in a Contracting State when the payer is that Contracting State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the  royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment  or fixed base in connection with which the liability to pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

 

6.         Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of royalties paid, having regard to the use, right or information for which they are paid, exceeds the amount which would have been agreed upon by the payer and the recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payments shall remian taxable according to the law of each Contracting State, due regard being had to the other provisions of this Convention.

 

 

ARTICLE 13
CAPITAL GAINS

1.         Gains from the alienation of immovable property, as defined in paragraph 2 of Article 6, may be taxed in the Contracting State in which such property is situated.

 

2.         Gains from the alienation of movable property forming part of the business property of a permanent establishment which  an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other  Contracting State for the purpose of performining independent personal services, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise) or of such a fixed base, may be taxed in that other State.

 

3.         Notwithstanding the provsions of paragraph 2, gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft which it operates in international traffic or movable property pertaining to the operation of such ships or aircraft shall be taxable only in that State.

 

4.         Gains derived by a resident of a Contracting State from the alienation of any property other than those mentioned in paragraphs 1,2 and 3 above and Article 12 shall be taxable only in that State.

 

 

ARTICLE 14
INDEPENDENT PERSONAL SERVICES

1.         Income derived by a resident of a Contracting State in respect of professional services or other independent activities of a similar character shall be taxable only in that State unless such activities were performed in the other Contracting State.  Income in respect of professional services or independent activities performed within that other State may be taxed by that other State.

 

2.         Notwithstanding the provisions of paragraph 1, income derived by a resident of a Contracting State in respect of professional services or other independent activites performed in the other Contracting State shall not be taxable in the other State if:

             (a)        the recipient is present in the other State for a period or

                          periods not exceeding in the aggregate 183 days in the

                          relevant "previous year" or "tax year" concerned, as the case

                          may be.

             (b)        the recipient does not maintain a fixed base in the other

                          State for a period or periods exceeding in the aggregate 183

                          days in such year, and

             (c)        the income is not borne by an enterprise or a permanent

                          establishment situated in that other State.

 

3.         The term "professional services" includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, surgeons, lawyers, engineers, architects,dentists and a accountants.

 

 

ARTICLE 15
DEPENDENT PERSONAL SERVICES

1.         Subject to the provisions of Articles 16, 17, 18, 19, 20 and 21, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is  so exercised, such remuneration as is derived therefrom may be taxed in that other Contracting State.

 

2.         Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first mentioned State if:

             (a)        the recipient is present in the other State for a period or

                          periods not exceeding in the aggregate 183 days in the

                          relevant  “previous year” or “tax year” concerned, as the case

                          may be, and

             (b)        the remuneration is paid by, or on behalf of, an employer

                          who is not a resident of the other  State, and

             (c)        the remuneration is not borne by an enterprise of the other

                          Contracting State or by a permanent establishment or a

                          fixed base which the employer has in the other State.

 

3.         Notwithstanding the preceding provisions of this Article, rmuneration derived in respect of an employment exercised aboard a ship or aircraft operated in international traffic, by an enterprise of a Contracting State  shall be taxable only in that State.

 

Last updated: 21.06.2023