background image
Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 14

Technical Service Fees

(1) Technical service fees arising in a Contracting State and derived by a resident of the other Contracting State may be taxed in that other State.

(2) However, such technical service fees may also be taxed in the Contracting State in which they arise, and according to the laws of that State, but if the recipient is the beneficial owner of the technical fees, the tax so charged shall not exceed 7.5 per cent of the gross amount of the technical service fees, (the percentage is to be established through bilateral negotiations).

(3) The term "technical service fees" as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, in consideration for any service of a managerial, professional, technical or consultancy nature or such similar service, performed by a resident of a Contracting State for a resident of the other Contracting State.

(4) The provisions of paragraph 1 and 2 shall not apply if the beneficial owner of the technical service fees, being a resident of a Contracting State, carries on business in the other Contracting State in which the technical service fees arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed based situated therein, and the technical service fees are effectively connected with such permanent establishment or fixed based. In such a case, the provisions of Article 7 or Article 15, as the case may be shall apply.