ARTICLE 13

Fees for Technical Services

(1) Fees for technical services 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 fees for technical services 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 fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the fees for technical services.

(3) The term "fees for technical services" as used in this Article means payments of any kind to any person, other than to an employee of the person making the payment, in consideration for any service of a technical, managerial or consultancy nature, including the provision of services of technical or other personnel.

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

(5)

• (a) Fees for technical services shall be deemed to arise in a Contracting State when the payer is that State itself, a political sub-division, a local authority or a resident of that State. Where, however, the person paying the fees for technical services, whether that person is a resident of a Contacting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the fees for technical services was incurred, and such fees for technical services are borne by the permanent establishment, then such fees for technical services shall be deemed to arise in the State in which the permanent establishment is situated.
• (b) Where under sub-paragraph (a) fees for technical services do not arise in one of the Contracting States, and the fees for technical services relate to services performed, in one of the Contracting States, the fees for technical services shall be deemed to arise in that Contracting State.

(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 fees for technical services 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 Jo the laws of each Contracting State, due regard being had to the other provisions of this Agreement.