Remunerations for Technical Services
(1) Remunerations for technical services arising in a Contracting State and whose beneficial owner is a resident of the other Contracting State may be taxed in that other State.
(2) However, such remunerations for technical services may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of such remunerations is a resident of the other Contracting State, the tax so charged shall not exceed 8 percent of gross amount of the remunerations. The competent authorities of the Contracting States shall settle the mode of application of this limitation by mutual agreement.
(3) The term " remunerations for technical services" as used in this Article means any payments to any person other than those mentioned in Articles 7, 12, 15 and 16 of this Convention, in consideration of services of managerial, technical or consultancy nature, including the provision of services by technical personnel or other personnel.
(4) The provisions of paragraphs (1) and (2) shall not apply if the beneficial owner of the technical services, being a resident of a Contracting State, carries on a business activity in the other Contracting State in which the technical services arise, through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the technical services are paid is effectively connected therewith. In such case the provisions of Article 7 or Article 15, as the case may be, shall apply.
(5) The remunerations for technical services are deemed to arise in a Contracting State in case the payer is a resident of that State. In case the payer of the remunerations for technical services, whether a resident of a Contracting State or not, however, has a permanent establishment in a Contracting State for which the contract giving rise to the payment of the remunerations for technical services has been entered and which as such incurs the charge thereof, such remunerations for technical services shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.
(6) Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some third parties, the amount of the remunerations for technical services, 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 in accordance with the laws of each Contracting State, due regard being had to the other provisions of this Convention.