ARTICLE 10
Dividends
(1) Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.
(2) However, such dividends may also be taxed in the Contracting State of which the company paying dividends is a resident and in accordance with the laws of that State, but if the recipient who is the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed the following:
- (a) 5 per cent of the gross amount of the dividends if the recipient is the beneficial owner of the dividends is a company (other than a partnership) that directly holds, at least 10 per cent of the capital of the company paying the dividends;
- (b) 15 per cent of the gross amount of the dividends in any other case.
This present paragraph shall not affect the taxation of the profits of the company out of which dividends are paid.
(3) The term "dividends" as used in this Article means income from shares, "jouissance" shares or certificates, mining or founder's shares, as well as income which is subjected to the same taxation treatment as income from shares under the laws of the State of which the company making the distribution is a resident and distributions relating to shares in an investment fund.
(4) The provisions of paragraphs (1) and (2) of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or performs an independent personal service from a fixed base situated therein, and the holding in respect of which the dividends are paid is effectively connected therewith. In such case the provisions of Article 7 or Article 14 of this Convention, as the case may be, shall apply.
(5) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company's undistributed profits to a tax on the company's undistributed profits, even in case the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.