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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.

ARTICLE 10

Dividends

(1) The dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State shall be taxable in that other State.

(2) However, such dividends shall also be taxable where the company that pays 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 thus established shall not exceed:

  • (a) ten percent of the gross amount of the dividends if the beneficial owner is a company (other than a company of persons) who directly hold at least twenty-five percent of the capital of that company that pays the dividends;
  • (b) fifteen percent of gross amount of dividends, in all other cases.

The present paragraph shall not affect the taxation of the company on the profits in respect of which the dividends are paid.

(3) The term "dividend" employed in the present Article implies the incomes arising from shares, stocks or "jouissance" shares, mining shares, promoter shares or other rights not being debt-claims, as well as the income from other corporate rights subject to similar taxation treatment as the income of the shares by the tax laws of the State where 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, is a resident of a Contracting State and exercises either an industrial or commercial activity through a permanent establishment that is located in the other Contracting State of which the company that pays the dividends is a resident, or by exercising independent personal services from a fixed base situated therein and when the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base. In such case, the dividends shall be taxed according to the provisions of Article 7 or Article 14.

(5) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State shall 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.