(2) However, such royalties may also be
taxed in the Contracting State in which
they arise and according to the laws of that
State, but if a resident of the other Con-
tracting State is the beneficial owner of the
royalties the tax so charged shall not
exceed 10 per cent of the gross amount of
the royalties.
(3) Notwithstanding the provisions of
paragraph 2, royalties arising in a Contract-
ing State and paid to a resident of the other
Contracting State who is the beneficial
owner of the royalties shall be taxable only
in that other State if they are:
a) copyright royalties and other like pay-
ments in respect of the production or
reproduction of any literary, dramatic,
musical or artistic work (but not includ-
ing royalties in respect of motion pic-
ture films nor royalties in respect of
works on film or videotape or other
means of reproduction for use in con-
nection with television broadcasting);
b) royalties for the use of, or the right to
use, computer software or any patent
or for information concerning industrial,
commercial or scientific experience
(but not including any such royalty pro-
vided in connection with a rental or
franchise agreement).
(4) The term “royalties” as used in this
Article means payments of any kind re-
ceived as a consideration for the use of, or
the right to use, any copyright, patent,
trade mark, design or model, plan, secret
formula or process or other intangible
property, or for the use of, or the right to
use, industrial, commercial or scientific
equipment, or for information concerning
industrial, commercial or scientific experi-
ence, and includes payments of any kind in
respect of motion picture films and works
on film, videotape or other means of repro-
duction for use in connection with televi-
sion.
(5) The provisions of paragraphs 1 to 3
shall not apply if the beneficial owner of the
royalties, being a resident of a Contracting
State, carries on business in the other Con-
tracting State in which the royalties arise,
through a permanent establishment situ-
ated therein, or performs in that other State
independent personal services from a fixed
base situated therein, and the right or prop-
erty in respect of which the royalties are
paid is effectively connected with such per-
manent establishment or fixed base. In
such case the provisions of Article 7 or Arti-
cle 14, as the case may be, shall apply.
(6) Royalties shall be deemed to arise in
a Contracting State when the payer is a
resident of that State. Where, however, the
person paying the royalties, whether the
payer 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 obligation to pay the royal-
ties was incurred, and such royalties are
borne by such permanent establishment or
fixed base, then such royalties shall be
deemed to arise in the State in which the
permanent establishment or fixed base is
situated.
(7) Where, by reason of a special rela-
tionship between the payer and the benefi-
cial owner or between both of them and
some other person, the amount of the roy-
alties, having regard to the use, right or
information 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 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 accord-
ing to the laws of each Contracting State,
due regard being had to the other provi-
sions of this Agreement.
de-canada-2002-base | BGBl. 2002 II S. 670 | signed 2001-04-19 | published 2002-03-27 | Signed: 2001-04-19 | Gazette publication: 2002-03-27
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, multilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
The original prints German, English and French treaty and integral protocol texts in three columns. All three authentic treaty-language transcriptions are supplied here; R3 omitted French. This is NOT a full-language accuracy/completeness certification. Physical PDF page 38 is a separate German-only competent-authority agreement dated 19/20 April 2001, not an amendment or translated treaty text. No English/French version of that supplement is supplied or invented. Signature 2001-04-19 differs from edition ID/publication year 2002. No qualified human wording review, legal review, current-law or publication approval. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-canada-2002-base/. PDF page links identify pages, not verified paragraph correspondence.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Unknown as current law. Signed 2001-04-19; consent law 2002-03-23; gazette publication 2002-03-27. Edition ID year is not a signature date. Treaty entry into force: 2002-03-28. Roster general application: 2001-01-01 (not a universal tax-specific rule). Cached official article entry statements (may refer to multiple instruments): 28. März 2002. Evidence is the retained 2026-10-01 agent audit of source PDF, 2026-01-01 roster and cached official HTML, not a fresh current-law determination. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
Printed signature protocol retained separately and not merged into articles. Roster future-instrument/negotiation entry (NOT proof of operative amendment): Kanada R-P V. P = Paraphierung (initialled), NOT signature; U = signed, ratification pending; V = negotiation. R-P protocol/R-A replacement. MLI application and complete later amendments, replacements or suspensions are NOT verified. No developments after the retained roster snapshot are certified. This is NOT a current consolidated instrument. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Text language and status
en · authentic-language-transcription · machine-transcription
BGBl. 2002 II S. 670 | de-canada-2002-base | de-canada-2002-base | BGBl. 2002 II S. 670 | signed 2001-04-19 | published 2002-03-27 | Signed: 2001-04-19 | Gazette publication: 2002-03-27 | Article 12 | en | Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed. | /library/treaties/de-canada-2002-base/en/articles/article-12/
Source, edition and limits
Source edition
de-canada-2002-base | BGBl. 2002 II S. 670 | signed 2001-04-19 | published 2002-03-27 | Signed: 2001-04-19 | Gazette publication: 2002-03-27
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, multilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
The original prints German, English and French treaty and integral protocol texts in three columns. All three authentic treaty-language transcriptions are supplied here; R3 omitted French. This is NOT a full-language accuracy/completeness certification. Physical PDF page 38 is a separate German-only competent-authority agreement dated 19/20 April 2001, not an amendment or translated treaty text. No English/French version of that supplement is supplied or invented. Signature 2001-04-19 differs from edition ID/publication year 2002. No qualified human wording review, legal review, current-law or publication approval. Unreviewed coordinate-based machine transcription of this original source edition only. Printed line breaks, hyphens and uncertain token spacing are retained, not silently corrected. Treaty preamble, closing formula, protocol and shared signatures are separate retained assets, not part of the last article. Full supplements: /review/de-canada-2002-base/. PDF page links identify pages, not verified paragraph correspondence.
Review status
Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed.
Currentness
Original source edition; not a verified current-law consolidation. Unknown as current law. Signed 2001-04-19; consent law 2002-03-23; gazette publication 2002-03-27. Edition ID year is not a signature date. Treaty entry into force: 2002-03-28. Roster general application: 2001-01-01 (not a universal tax-specific rule). Cached official article entry statements (may refer to multiple instruments): 28. März 2002. Evidence is the retained 2026-10-01 agent audit of source PDF, 2026-01-01 roster and cached official HTML, not a fresh current-law determination. Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Protocols and later instruments
Printed signature protocol retained separately and not merged into articles. Roster future-instrument/negotiation entry (NOT proof of operative amendment): Kanada R-P V. P = Paraphierung (initialled), NOT signature; U = signed, ratification pending; V = negotiation. R-P protocol/R-A replacement. MLI application and complete later amendments, replacements or suspensions are NOT verified. No developments after the retained roster snapshot are certified. This is NOT a current consolidated instrument. Source-triage warnings: Bounded agent triage, no qualified wording/alignment/legal review. No exhaustive verification of all later 2026 developments. Matching digest proves retained source identity, not legal force.
Text language and status
en · authentic-language-transcription · machine-transcription