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 the dividends is a resident and according to the laws of that State, but if the beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed:

• (a) 5 per cent of the gross amount of the dividends if the beneficial owner (other than an individual or a partnership) holds directly at least 10 per cent of the capital of the company paying the dividends;
• *(b) 10 per cent of the gross amount of the dividends in all other cases;
• #(c) notwithstanding the provisions of sub-paragraphs (a) and (b), 15 per cent of the gross amount of the dividends if the company paying the dividend is a real estate investment company or trust, as the case may be.

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

#(3) For the purpose of Article 10 of the Agreement, the term “company” shall include:

• (a) in the case of the Federal Republic of Germany, a real estate investment company that is a company according to paragraph (1) of Section 1 of the German Act on German Real Estate Stock Corporations with Listed Shares (REIT Act); and
• (b) in the case of Singapore, a real estate investment trust that is a trust constituted as a collective investment scheme authorised under Section 286 of the Securities and Futures Act (Cap. 289) and listed on the Singapore Exchange, and that invests or proposes to invest in immovable property and immovable property-related assets, and that is not taxed at the trustee level pursuant to Section 43(2A) of the Singapore Income Tax Act (Cap. 134).

(4) Notwithstanding the provisions of paragraphs (1) and (2) above, in the Federal Republic of Germany, income of a sleeping partner ("stiller Gesellschafter") from his participation as such or from a "partiarisches Darlehen" or a "Gewinnobligation" that is deductible in determining the profits of the debtor may be taxed in the Federal Republic of Germany according to its laws.

*(5) As long as Singapore does not impose a tax on dividends in addition to the tax chargeable on the profits or income of a company, dividends paid by a company which is a resident of Singapore to a resident of the Federal Republic of Germany shall be exempt from any tax in Singapore which may be chargeable on dividends in addition to the tax chargeable on the profits or income of the company. If subsequent to the signing of the Agreement, Singapore imposes a tax on dividends in addition to the tax chargeable in respect of the profits or income of a company which is a resident of Singapore, such tax may be charged but the tax so charged on the dividends derived by a resident of the Federal Republic of Germany who is the beneficial owner of such dividends shall be in accordance with the provisions of paragraph (2).

(6) The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares or other income which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident and includes distributions of an investment fund or investment trust. In the Federal Republic of Germany, the term "dividends" includes also income derived by a sleeping partner ("stiller Gesellschafter") from his participation as such or from a "partiarisches Darlehen" or a "Gewinnobligation".

(7) The provisions of paragraphs (1) and (2) above 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 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 case the provisions of Article 7 or Article 14, as the case may be, shall apply.

(8) 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 if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.