(1) Interest derived from a Contracting State and paid to a resident of the other Contracting State shall be taxable in the other Contracting State.
(2) The term "interest" shall mean herein the income which is derived from all kinds of debt bonds whether guaranteed or not, conditional or not, including the right to the contribution to the debt profits. This term shall mean, in particular, the income derived from the government guarantees, bonds or shares including vouchers and rewards in relation with such guarantees, bonds or shares. The fine imposed due to the delay payment of debt bonds shall not be considered interests for the purposes of such Article.
(3) The provisions of paragraphs (1) hereof shall not apply if the beneficiary of profits is a resident of a Contracting State and carries out business in the other Contracting State, in which the company paying the profits through a permanent establishment resident therein, or performs in that other State independent professions through a fixed base situated therein, in which the claim for debt is effectively connected with a permanent establishment or fixed base. In such case, the provisions of Articles 8 or 15 thereof, as requires, shall apply.
(4) Interest shall be deemed to arise in a Contracting State when the payer of the interest is a resident of that State, and whether he is a resident first of a Contracting State or not, has a permanent establishment, a Contracting State or a fixed base relating to the indebtedness on which the interest is paid, and such permanent establishment or fixed base bears the burden of this interest, then this interest arises from the country in which the permanent establishment or fixed base is located.
(5) Where it is found, on the basis of a special relationship between the payer and the beneficial owner or between both of them and another person, that the value of the interest, taking into account the debt-claim for which it is paid, exceeds the amount which would have been agreed upon between the payer and the beneficial owner in the absence of such relationship, then the provisions of this Article shall apply only to the last-mentioned amount, and in such case the excess part of the payments shall remain subject to the law of each Contracting State, with due regard to other provisions of this Convention.