ARTICLE 10

Dividends

(1) Dividends paid by a company resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

(2) Such dividends, however, may also be taxed in the Contracting State in which he resides the company paying the dividends and in accordance with the laws of that State, but if the beneficial owner of the dividends is a resident of the other State will hire, the tax charged shall not exceed:

• (a) 5% of the gross amount of the dividends if the beneficial owner is a company (other than a partnership) which holds directly at least 15% of the capital of the company paying the dividends;
• (b) 10% of the gross amount of the dividends in all other cases.

The provisions of this paragraph shall not affect the taxation of the company on the profits out of which the dividends are paid.

(3) The term "dividends" as used in this Article means income from shares, stocks or bonds, of mining shares, founders' party or other rights, not being debt-claims, participating in benefits as well as income from other corporate subject 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.

(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, carries on business in the other Contracting State of residence the company paying the dividends, through a permanent establishment situated therein, or performs in that other State independent personal services through a fixed base situated in that other State, provided that 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 applicable.

(5) When a company 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 to a tax on undistributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State.