ARTICLE 12
Royalties and Services Fees
(1) Royalties or services fees 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 or services fees may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties or services fees is a resident of the other Contracting State, the tax so charged shall not exceed 8 percent of the gross amount of the royalties or services fees.
(3) The term "royalties" as used in this Article means payments of any kind received as a consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films and films or tapes used for television or radio broadcasting, any patent, trade mark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience. The term "royalties" shall also include payments of any kind for the use or the right to use a person's name; picture or any other similar personality rights and on payments received as consideration for the registration of entertainers' or sportsmen's performances by radio or television.
(4) The term "services 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 services of a managerial, technical or consultancy nature, rendered in a Contracting State. However the term "services fees" shall not include any payments in consideration for supervisory activities in connection with a building site or construction, assembly or installation project or for supervisory activities in connection with installation incidental to the sale of machinery or parts thereof and remuneration referred to in paragraph (1) of Article 14.
(5) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the royalties or services fees, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties or services fees 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 or the obligation in respect of which the services fees are paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case may be, shall apply.
(6) Royalties and services fees shall be deemed to arise in a Contracting State when the payer is a resident of that State. Where, however, the person paying the royalties or services fees, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the royalties or services fees was incurred, and such royalties or services fees are borne by such permanent establishment or a fixed base, then such royalties or services fees shall be deemed to arise in the Contracting State in which the permanent establishment or a fixed base is situated.
(7) 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 or services fees, having regard to the use, right, information or service 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 Agreement.