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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) Royalties arising from a Contracting State and paid to a resident of the other Contracting State are taxable only in that other State.

(2) However, these royalties are also taxed in that Contracting State from where they arise according to the laws of this State; but if the recipient is the beneficial owner of the royalties, the tax thus charged cannot exceed five percent of the gross amount of the royalties.

(3) The expression "royalties" 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, patent, trademark or, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific know-how. The expression "royalties" also includes remuneration of every kind that is made or for the right to use names, images or other personality-related matters, as well as for fees for the recording of events by artists and sports persons through radio and television.

(4) The provisions of the paragraphs (1) and (2) shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a permanent establishment situated therein and property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall be applicable.

(5) Royalties 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, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the royalties are paid was incurred, and such royalties are borne by it, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

(6) 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 and taking into account the other provisions of this Convention.