Common use of TECHNICAL FEES Clause in Contracts

TECHNICAL FEES. 1) Technical fees derived by a resident of a Contracting State in respect of activities of a technical, managerial or consultancy cha- racter shall be taxable only in that State. 2) However, if such activities are exercised in the other Contracting State, such techni- cal fees as are derived therefrom may be taxed in that other State but the tax so charged shall not exceed 10 % of the gross amount of the technical fees. 3) The term "technical fees" as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments or to a person mentioned in Article 16, in consideration for any services of a technical, managerial or consultancy nature. 4) The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the technical fees, being a resident of a Contracting State, exercises the activities dealt with in paragraph 1 in the other Contracting State through a permanent es- tablishment situated therein. In such a case the provisions of Article 7 shall apply. 5) Notwithstanding the provisions of para- graph 2, the beneficial owner of the tech- nical fees may choose to be taxed as if the activities giving rise to the technical fees exercised in the other Contracting State were exercised through a permanent esta- blishment situated in the other Contracting State. 6) Where, by reason of a special relations- hip between the payer and the beneficial owner or between both of them and some other person, the amount of the technical fees paid exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, 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.

TECHNICAL FEES. 1) . Technical fees derived by arising in a Contracting State and paid to a resident of a Contracting State in respect of activities of a technical, managerial or consultancy cha- racter shall be taxable only in that State. 2) However, if such activities are exercised in the other Contracting State, such techni- cal fees as are derived therefrom State may be taxed in that other State. 2. However, such technical fees may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the technical fees the tax so charged shall not exceed 10 % 8 per cent of the gross amount of the technical fees. 3) . The term "“technical fees" ” as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments or to a person mentioned in Article 16payments, in consideration for any services of a technical, managerial or consultancy nature. 4) . The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the technical fees, being a resident of a Contracting State, exercises the activities dealt with in paragraph 1 carries on business in the other Contracting State in which the technical fees arise, through a permanent es- tablishment establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the technical fees are effectively connected with such permanent establishment or fixed base. In such a case case, the provisions of Article 7 or Article 15, as the case may be, shall apply. 5) Notwithstanding . Technical fees shall be deemed to arise in a Contracting State when the provisions payer is that State itself, a political subdivision, a local authority or a statutory body thereof, or a resident of para- graph 2that State. Where, however, the beneficial owner person paying the technical fees, whether the person is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the tech- nical fees may choose obligation to be taxed as if the activities giving rise to pay the technical fees exercised was incurred, and such technical fees are borne by that permanent establishment or fixed base, then such technical fees shall be deemed to arise in the other Contracting State were exercised through a in which the permanent esta- blishment situated in the other Contracting Stateestablishment or fixed base is situated. 6) . Where, by reason of a special relations- hip relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the technical fees paid exceeds exceeds, for whatever reason, the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, 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 ConventionAgreement.