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 person receiving the dividends is the beneficial owner, the tax so charged cannot exceed 10 per cent of the gross amount of the dividends.

(3) The term "dividends" as used in this Article means income from shares or profit sharing certificates, founders' shares or other rights participating in profits, as well as income from other corporate rights assimilated to income from shares by the taxation law of the State of which the company is a resident.

(4) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State has in the other Contracting State of which the company paying the dividends is a resident, through a trade or business by state through a permanent establishment situated therein, or performs professional services from a fixed base situated therein, and the dividends are paid is effectively connected. In this case, the provisions of Article 7 or Article 14, 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, 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 dividends is effectively connected with a permanent establishment or a fixed base situated in that other State, nor any tax in respect of income tax retained even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.