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 taxed in the Contracting State in which it arises, and according to the law of that State, but the tax so charged shall not exceed 25 per cent of the gross amount of the interest.
3 Notwithstanding the provisions of paragraph 2, the tax of a Contracting State on interest received by any financial institution (including an insurance company) which is a company of the other Contracting State shall not exceed 10 per cent of the gross amount of the interest, if the enterprise paying the interest engages in an industrial undertaking within the meaning of paragraph 4, subparagraph b, of Article 10.
4 Notwithstanding the provisions of paragraphs 2 and 3, interest arising in a Contracting State shall be exempt from tax in that State if the interest is received by (a) the other Contracting State, a Land, a political subdivision, a local authority or a local administration thereof, or (b) any financial institution wholly owned by the other Contracting State, a Land, a political subdivision, a local authority or a local administration thereof, and in particular, in the case of the Federal Republic, by the Deutsche Bundesbank or the Kreditanstalt fur Wiederaufbau, and in the case of Thailand, by the Bank of Thailand , or (c) by a resident of the other Contracting State on bonds issued by the Government of the first-mentioned State.
5 The term interest as used in this Article means income from Government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the State in which the income arises.
6 The provisions of paragraphs 1 to 4 shall not apply if the recipient of the interest, being a resident of a Contracting State, has in the other Contracting State in which the interest arises a permanent establishment with which the debt-claim from which the interest arises is effectively connected, provided that under the law of the ther State the interest is taxed as part of the profits of the permanent establishment.
7 Interest shall be deemed to arise in a Contracting State when the payer is that State, a Land, 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 in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.
8 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 law of each Contracting State, due regard being had to the other provisions of this Agreement.
1 Royalties including other like payments 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 (a) 5 per cent of the gross amount of such payment if they are made as consideration for the use of, or the right to use any copyright of literary, artistic or scientific work; (b) 15 per cent of the gross amount of such payments if they are made as consideration for the use of, or the right to use any patent, trade mark, design or model,plan, secret formula or process, or for information concerning industrial, commercial or scientific experience, or for the right to use cinematograph films or tapes for television or broadcasting.
3 The provisions of paragraph 2 shall likewise apply to the gains from the alienation of any right or property giving rise to such royalties if such right or property is alienated by a resident of a Contracting State for exclusive use in the other Contracting State and the payment of such right or property is borne by an enterprise of that other State or a permanent establishment situated therein.
4 The provisions of paragraphs 2 and 3 shall not apply if the recipient of the royalties, being a resident of a Contracting State, has in the other Contracting State in which the royalties arise a permanent establishment and the royalties are attributable to that permanent establishment, provided that under the law of that other State the royalties are taxed as part of the profits of the permanent establishment.
5 Royalties shall be deemed to arise in a Contracting State when the payer is that State, a Land, a political subdivision, 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 with which the right or property giving rise to the royalties is effectively connected, and such royalties are borne by such permanent establishment, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment 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 the 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 remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.
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, including such gains from the alienation of such a permanent establishment (alone or together with the whole enterprise), may be taxed in the other State. However, gains from the alienation of movable property of the kind referred to in paragraph 3 of Article 21 shall be taxable only in the Contracting State in which such movable property is taxable according to the said Article.
3 Gains from the alienation of any property other than those mentioned in paragraph 3 of Article 1 and in paragraphs 1 and 2 of this Article shall be taxable only in the Contracting State of which the alienator is a resident.
1 Subject to the provisions of Article 15, 16 and 17 remuneration derived by an individual who is a resident of a Contracting State in respect of personal service (including the practice of a liberal profession) shall be taxable only in that State unless the service are rendered in the other Contracting State. If the service are so rendered, such remuneration as is derived therefrom may be taxed in that other State.
2 Notwithstanding the provisions of paragraph 1, remuneration derived by an individual who is a resident of a Contracting State in respect of such service rendered 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 fiscal year concerned, and (b) the remuneration is paid by, or on behalf of, a person who is not a resident of the other State, and (c) the remuneration is not borne by a permanent establishment which the person paying the remuneration has in the other State.
3 Notwithstanding the provisions of paragraphs 1 and 2, remuneration in respect of an employment exercised aboard a ship or aircraft in international traffic, operated by an enterprise of a Contracting State, may be taxed in that State.
1 The provisions of paragraph 2 of Article 14 shall apply to remuneration derived from personal services rendered in a Contracting State by public entertainers such as theatre, radio or television artistes and musicians and by athletes from their personal activities as such only if the visit to that State is substantially supported, directly or indirectly, by public funds of the other Contracting State.
2 Notwithstanding anything contained in this Agreement where the services mentioned in paragraph 1 are provided in a Contracting State by an enterprise of the other Contracting State, the profits derived from providing those services by such enterprise may be taxed in the first-mentioned State unless the enterprise is substantially supported, directly or indirectly, by public funds of the other Contracting State in connection with the provision of such services.
3 For the purposes of this Article, the term public funds of a Contracting State shall include public funds created by a Land, a political subdivision, a local authority or a local administration thereof.
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