(1) Royalties and fees for technical services arising in a Con-
tracting State and paid to a resident of the other Contracting
State may be taxed in that other State.
(2) However, such royalties and fees 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 the royalties or fees for technical services is a resident
of the other Contracting State, the tax so charged shall not
exceed 7 per cent of the gross amount of the royalties or fees
for technical services. The competent authorities of the Con-
tracting States shall by mutual agreement settle the mode of
application of this limitation.
(3) The term “royalties” as used in this Article means pay-
ments of any kind received as a consideration for the use of, or
the right to use, any copyright of literary, artistic or scientific
work (including cinematograph films, and films or tapes for
radio or television broadcasting), any patent, trade mark, design
or model, plan, secret formula or process, or for the use of, or
the right to use, industrial, commercial or scientific equipment,
or for information (know-how) concerning industrial, commer-
cial or scientific experience.
(4) The term “fees for technical services” as used in this Art-
icle means payments of any kind to any person, other than to an
employee of the person making the payments, in consideration
for any services of a technical, managerial or consultancy
nature.
(5) The provisions of paragraphs 1 and 2 shall not apply if the
beneficial owner of the royalties or fees for technical services,
being a resident of a Contracting State, carries on business in
the other Contracting State in which the royalties or fees for
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 or contract in respect of which the royalties or
fees for technical services are paid is effectively connected with
such permanent establishment or fixed base. In such a case the
provisions of Article 7 or Article 14, as the case may be, shall
apply.
(6) Royalties and fees for technical services 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 or
fees for technical services, whether he is a resident of a Con-
tracting State or not, has in a Contracting State a permanent
establishment or a fixed base in connection with which the obli-
gation to pay the royalties or fees for technical services was
incurred, and such royalties or fees for technical services are
borne by such permanent establishment or fixed base, then
such royalties or fees for technical services 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 relationship between the
payer and the beneficial owner or between both of them and
some other person, the amount of the royalties or fees for tech-
nical services, having regard to the use, right, information or
services 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
according to the laws of each Contracting State, due regard
being had to the other provisions of this Agreement.
de-malaysia-2010-base | BGBl. 2010 II S. 1310 | Signed: 2010-02-23 | Gazette publication: 2010-11-23
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
This source supplies German and English versions. The signing clause also identifies Malaysian as authentic; that third version is NOT present in this reader. 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-malaysia-2010-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. No current-law consolidation, effective-period determination, MLI application, or complete amendment-chain verification has been performed. Original publication year is not a current applicability date. 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
The protocol printed with this agreement is separately preserved in source supplements; it has not been merged into treaty articles. Subsequent protocols, amendments, MLI effects, replacements and suspensions are unresolved. This is not a consolidated current-law 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. 2010 II S. 1310 | de-malaysia-2010-base | de-malaysia-2010-base | BGBl. 2010 II S. 1310 | Signed: 2010-02-23 | Gazette publication: 2010-11-23 | Article 12 | en | Pending human wording, completeness, source-authority, currentness, alignment and rendering review. No legal review performed. | /library/treaties/de-malaysia-2010-base/en/articles/article-12/
Source, edition and limits
Source edition
de-malaysia-2010-base | BGBl. 2010 II S. 1310 | Signed: 2010-02-23 | Gazette publication: 2010-11-23
Source form
official-publication PDF with native text layer; reader is a machine transcription
Source scope
original implementing law, bilingual base treaty and accompanying protocol; not a current consolidated text
Retrieved
2026-09-30
Text and language scope
This source supplies German and English versions. The signing clause also identifies Malaysian as authentic; that third version is NOT present in this reader. 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-malaysia-2010-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. No current-law consolidation, effective-period determination, MLI application, or complete amendment-chain verification has been performed. Original publication year is not a current applicability date. 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
The protocol printed with this agreement is separately preserved in source supplements; it has not been merged into treaty articles. Subsequent protocols, amendments, MLI effects, replacements and suspensions are unresolved. This is not a consolidated current-law 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