ARTICLE 10
Dividends
1. Dividends paid by a company which is a resident of a
Contracting state to a resident of the other Contracting state
may be taxed in that other state.
2. However, such dividends may also be taxed in the
Contracting state of which the company paying the dividends is a
resident, and according to the laws of that state, but if the
beneficial owner of the dividends is a resident of the other
Contracting state, the tax so charged shall not exceed:
a) 15 per cent of the gross amount of the dividends if
the beneficial owner is a company which owns at least 10 per
cent of the voting stock of the company paying the dividends;
b) 25 per cent of the gross amount of the dividends in
all other cases.
Subparagraph b) and not subparagraph a) shall apply in the case
of dividends paid by a United States person which is a Regulated
Investment Company. Subparagraph a) shall not apply to dividends
paid by a United States person which is a Real Estate Investment
Trust, and subparagraph b) shall only apply if the dividend is
beneficially owned by an individual holding a less than 10
percent interest in the Real Estate Investment Trust. This
paragraph shall not affect the taxation of the company in respect
of the profits out of which the dividends are paid.
3. The term "dividends" as used in this Article means income
from shares or other rights, not being debt-claims, participating
in profits, income from other corporate rights which are
subjected to the same taxation treatment as income from shares by
the taxation laws of the state of which the company making the
distribution is a resident; and income from arrangements,
including debt obligations, carrying the right to participate in
profits, to the extent so characterized under the laws of the
Contracting state in which the income arises.
4 The provisions of paragraphs 1 and 2 shall not apply if
the beneficial owner of the dividends, being a resident of a
Contracting state, carries on business in the other Contracting
State, of which the company paying the dividends is a resident,
through a permanent establishment situated therein, or performs
in that other state independent personal services from a fixed
base situated therein, and the dividends are attributable to such
permanent establishment or fixed base. In such case the
provisions of Article 7 (Business Profits) or Article
15 (Independent Personal Services), as the case may be, shall
apply.
5. Where a company which is a resident of a Contracting
State derives profits or income from the other Contracting State,
that other State may not impose any tax on the dividends paid by
the company except insofar as such dividends are paid to a
resident of that other State or insofar as the holding in respect
of which the dividends are paid is effectively connected with a
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permanent establishment or a fixed base situated in that other
State, nor subject the company’s undistributed profits to a tax
on the company’s undistributed profits, even if the dividends
paid or the undistributed profits consist wholly or partly of
profits or income arising in such other state.