3. The term "royalties" as used in this Article means payments 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 cinematographic films or films
or tapes used for radio or television broadcasting, any patent, technical know-how, trademark, 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 concerning industrial, commercial or scientific experience.
4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties, being a resident
of a Contracting State, carries on business in the other Contracting State in which the royalties arise, through a
permanent establishment situated therein; or performs in that other Contracting State independent personal services
from a fixed base situated therein, and the right or property in respect of which the royalties are paid is effectively
connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or 13, as the
case may be, shall apply.
5. (a) Royalties will be deemed to arise in a Contracting State when the payer is the government of
that Contracting State itself, a political subdivision, a local authority or a resident of that Contracting State.
Where, however, the person paying the royalties, whether he 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 liability to
pay the royalties was incurred, and such royalties are borne by such permanent establishment or fixed base,
then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment
or fixed base is situated.
(b)Where under subparagraph (a) royalties do not arise in one of the Contracting States, and the
royalties related to the use of, or the right to use, the right or property in one of the Contracting States, the
royalties shall be deemed to arise in that Contracting State.
6. 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, 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 according to the laws of each Contracting State, due regard
being had to the other provisions of this Agreement.
ARTICLE 12
(Gains)
1. Gains derived by a resident of a Contracting State from the alienation of real property referred to in Article 6
and situated in the other Contracting State may be taxed in that other Contracting State.
2. Gains from the alienation of movable (personal) property forming part of the business assets of a permanent
establishment which an enterprise of a Contracting State has in the other Contracting State, or of movable (personal)
property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the
purpose of performing independent personal services, including such gains from the alienation of such a permanent
establishment (alone or together with the whole enterprise) or such a fixed base, may be taxed in that other
Contracting State.
3. Gains derived by a resident of a Contracting State from the alienation of ships or aircraft operated in
international traffic and of movable (personal) property pertaining to the operation of such ships or aircraft shall be
taxable only in that Contracting State.
4. Gains from the alienation of shares of the capital stock of a company the property of which consists directly or
indirectly principally of real property situated in a Contracting State may be taxed in that Contracting State.
5. Gains from the alienation of shares other than those mentioned in paragraph 4 representing a participation of
25 percent in a company which is a resident of a Contracting State may be taxed in that Contracting State.