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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) Dividends paid by a company that is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State, provided that such resident is the beneficial owner of the dividends.

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

(2) The term "dividends" as used in this Article means income from shares, "jouissance" shares or "jouissance" rights, mining shares, founders' shares, or other rights, not being debt claims, participating in profits, as well as income from other corporate rights that is subject to the same taxation treatment as income from shares under the laws of the State of which the company making the distribution is a resident.

(3) The provisions of paragraph (1) of this Article shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on an industrial or commercial activity in the other Contracting State of which the company paying the dividends is a resident through a permanent establishment situated therein, or provides independent personal services from a fixed base situated therein, and 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 the case may be, shall apply.

(4) Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, then that other State may fully exempt from tax the dividends paid by that company, except where such dividends are paid to a resident of that other State, or where the holding in respect of which the dividends are paid is effectively connected with such permanent establishment or fixed base situated in that other State. Further, the other Contracting State may not impose any taxation on the undistributed profits of the company, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in that Contracting State.