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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) The interest arising in a Contracting State and paid to a resident of the other Contracting State shall be taxable only in that other State.

(2) However, such interest, excluding those related to loans consented by a Contracting State, shall be taxed in that Contracting State from where they arise and according to the laws of that State, but the tax thus established shall not exceed twelve percent of their gross amount of the interest.

(3) The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and especially income from Government securities, bonds and debentures, including the premium and prizes attached to such titles.

(4) The provisions of paragraphs (1), (2) and (3) shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on an industrial or commercial business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment or fixed base. In such case, the provisions of Article 7 or Article 14, as the case may be, shall be applicable.

(5) The interest shall be deemed to arise in a Contracting State where the payer is the State itself, a political subdivision, or a local community or authority or a resident of that State. However, where the interest payer, whether or not is a resident of a Contracting State, has in the Contracting State, a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

(6) Where, by reason of special relations existing between the debtor and the beneficial owner or between both of them and some other person, the amount of interest, considering the debt-claim for which they are paid, exceeds the amount agreed between the debtor and beneficial owner in the absence of similar relations, the provisions of the present Article shall apply solely to the last-mentioned amount. In this case, the exceeding part of the payments remains taxable as per the laws of each Contracting State, due regard being had to the other provisions of the present Convention.