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Luxembourg - San Marino Tax Treaty (as amended by 2009 protocol) — Orbitax Tax Hub

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) Royalties arising in a Contracting State and paid to a resident of the other Contracting State shall only be taxable in that other State, provided that such a resident is the beneficial owner of such royalties.

(2) The term "royalties" as used in this Article means remuneration of any kind paid for the use of, or the right to use, any copyright of literary, artistic or scientific work, including software, cinematographic films and recordings used in radio and television transmission; the use of or the right to use any patent, trademark, design or model, plan, secret formula or process; and the use of or the right to use any information related with experience acquired in the field of industry, commerce, or science (know-how).

(3) The provisions of paragraphs (1) of this Article shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on in the other Contracting State in which the royalties arise, a business activity through a permanent establishment situated therein, and the right or property in respect of which the royalties are paid is effectively connected with such permanent establishment. In such case, the provisions of Article 7 shall apply.

(4) Where, by reason of a special relationship, either between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the service for which they are paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of similar relationships, 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 to the laws of each Contracting State, due regard being had to the other provisions of this Convention.