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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.



(1) The royalties arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable in that other State.

(2) Notwithstanding the provisions of paragraph (1) of the present Article, the royalties referred to in paragraph (3) shall also be taxed in the Contracting State from where they arise and according to the laws of that State, but the tax thus established shall not exceed:

  • (i) five percent of the gross amount of the royalties for those referred to in paragraph (3)(b);
  • (ii) fifteen percent of the gross amount of the royalties for those referred to in paragraph (3)(a).

(3) The term "royalties" used in the present Article means:

  • (a) the remunerations of any nature paid for the use or right to use a patent, a brand or trademark, design or model, map, formula or secret formula or process, for the use or right to use an industrial, commercial or scientific equipment and for information having an experience acquired in the industrial, scientific or commercial area; as well as technical or economic studies, or technical assistance performed in the other Contracting State.
  • (b) the remunerations of any kind paid for the use or right to use a copyright on a literary, artistic or scientific work, including cinematograph films and cinematograph films or recordings for radio and television.

(4) The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on an industrial or commercial 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 case, the royalties shall be taxed as per the provisions of Article 7 or Article 14, as the case may be.

(5) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, 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 beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In such 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.