ARTICLE 10
Dividends
(1) Dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in the other State.
(2) However, such dividends may also be taxed in the Contracting State of which a company paying the dividends is a resident, in accordance with the laws of that State, but if the recipient is the actual owner of such dividends, then the tax so levied shall not exceed:
- (a) 5 percent of the gross amount of the dividends, if the beneficiary is a company (but not a partnership), who owns at least 10 percent of the capital of the company paying the dividends;
- (b) 15 percent off the gross amount of the dividends in all other cases;
- (c) notwithstanding of the provisions of sub-paragraphs (a) and (b), 15 percent of the gross amount of dividends if the distributing company is a real estate investment company whose profits are wholly or partly tax exempt or that can deduct this distributions when calculating its profits.
This paragraph does not effect the taxation of the company with respect to the profits from which the dividends are paid.
(3) The term "dividends", as used in this Article, shall mean income from shares or other rights, not being debt claims, which give a right to participation in profits as well as income from other similar rights which are subject to the same taxation as income from shares, in accordance with the tax laws of the State of which the company making the distribution is a resident.
(4) The provisions of paragraphs (1) and (2) of this Article shall not apply if the recipient of the dividends, being a resident of a Contracting State, carries on business activities in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein or renders in that other State independent personal services from a fixed base situated therein and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such a case, the provisions of Article 7 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, such other State may not impose any tax on the dividends paid by such 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 the other State. Further, the other State may not impose any taxation on the undistributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that other State.