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202
ΕΠΙΣΗΜΟΣ ΕΦΗΜΕΡΙΣ ΤΗΣ 26ης ΦΕΒΡΟΥΑΡΙΟΥ
1982
those conditions, have accrued to one
of '
the
Ι
Article
11
enterpήses,
but, by reason of
t~ose con~itions, ι'
INTEREST
'_
have
ηοΙ
so accrued, may be mcluded
ιn
the
profits
οί
that
eηterpήse
and taxed accordingly.
Ι
~.
In'terest .avisingin a Contracting
S~teand
2.
Where a Contracting State includes
ίη
the
i
ιpald
to
aresld~nt
?f the
otίher
ContractIng Sta,te
profi.ts
οί
an
enteΓprise οί
·that State - and taxcs may Ibe taxed ID that ot'her State.
accordingJy - profits
οη
which an enterprise
2.
However,
inιterest derί;γed froιn
one of the
οΕ
the other Contraoting State has been charged :Contraoting States by a resident
of
the other
to tax
ίη
tha-t other State and ,the profits
~o
Contraoting State who is the 'beneficia,l owner
included are profits which would have accrued Ithereof may ,also lbe taxed inthe first-mentioned
ιο
the enterprise
οί
the f,irst-mentioned State
ίί
Con:tracting S:tate at a ,rate
ησΙ
exceeding
10
per
the condi,tions made
~tween
the two enter,prises
ωηι
of
the gross 'amount
t,hereoιf.
had
bee~
those which
wou~d
have
b~D
made
3.
Noιtwithstanding
th'e provision of ·paragraph
between lndependent
ell'terpns~s, the~
that other
2
οί
this Article
IίntereS1t
'ari'S'ing from cred,its or
State ' s'hall m'ake an a-ppropna1e
ad~ustment
to
ΙΌans
accoI'ded by the Government
οί
a Con.
the
~mount οί
the
.ta~
charged
t~erelD οη
thos: Itracting State or 'by a Bank orother institution
profIts.
Ιη
determInIng such
adJustme!1I~, du~ ίη
the name or
οη
behalf of th·at Government
regard shal'l be had to th'e other
proVlSl?~S o~shaH
,b'e itaxa!ble only
ίη
thIat State.
tbis Convention and the competent auItJhor:l1tles
οΙ
,
" .
" .
"
.
the Contracting
Staιtes
s'hall, if necessary, consult .
4.
T:~e
term . lnterest as !lsed
ιn
tlris
Ar~lcle
h ther
,means lncome ,from debt-clatms of every
kInίl,
eac
ο
.
'whether or
ηοΙ
secured by mor'tgage, and whether
Article
1
Ο
or
πσΙ
carrying ari'glrt to participa1e in the
DI'VlDENDS
1.
Dividends paid by a
comρany
whic;h is a
resident of a Cont'racting State to 'a resident of
the other Contracting State may be taxed
ίη
that
other State.
2.
ΗΌw~νer,
such divid'ends may also be taxed
ίη
the Contracting Sta:te
σί
which t,he oompany
paying the d:ivi'dends is a resrdent, and according
Ιο
the laws of that State, bat the tax so cha!rged
sha'll
ηοΙ
exceed
1
Ο
per cent
σf
thegross amount
οί
t,he dividends.
.
3.
The prov,isions
οί
paragraph
1
shall
ηοΙ
affect the amounts of tax chargeable
οη
the
ίη
come or profits
ουΙ σί
wh,ich suc'h divid'ends
arepaid.
'
4.
The competent authoriIties of the Contract–
ing States shall by mutua:l agreement settle the
mode
οί appli'caιtion o'~
paragraphs 2 and
3.
5.
The prov,isions
οί
paragraphs 2 and
3
shall
ηοΙ
affect th'e taxation of the company
ίη
re&pect
of the proofits
ουΙ
of wh,ich the dividends are
paίd.
6.
The term .. dividends " as used
ίη
this A.foticle
means income from shares, or other right·s,
ποΙ
being debt-claims, paI1icipating
ίη
profits, as well
as income from ot,her covporate rjghts which is
'sU'bject to the sa,me taxation treatment as income
from shares by the taxation law
σί
the State
οί
which the company making the distri:bution is .
a resident.
Ιη
this context, the
profiΙS
distributed
by Romanian joint companies to the capit'al
s uιbscribers
are
assimίIιia,ted Ιο
dividends.
7. The provisions of paragraphs ] , 2and
3
shaJl
ποΙ
apply if the recipieJ1t
οί
'the d'iv,idends, .
being a
residenιt οί
a
Contrad~ing
Sta:te, carries
οη
business
ίη
the other Contracting Sta:te
of
which the company paying the dividends is a
resident. through a permanent establishment
situa'ted therein, or
pe~forins ίη
,that other State
independent personal services from a fixed based
situated therein and the holding
ίη
respecr of
which
ιhe
dividends are paid is effectively con–
nected with such a permanent establishmen:t or
fixed base.
Ιη
such a case, the provisions
οΕ
Article '7 or Article
15,
as the case may be,
s'hall apply.
8.
W'here a com'pany whioh is
a
resident of
a
Contracting State deri
ves
prof.i1s or income frotn
the o:ther Contracting State,that
σther
Sta'te may
not im,pose any tax
οη
dividends paid by the
company
Ιο
residents of the 'first-mentioned State
or subject the com'pany's undistributedprofits
to
a tax
οη
undistributed profits even
ίί
the divi–
dends paid, or the undistributed profits consist
wholly or partJly of profits or inoome arising
ίη
that other State.
debtor's
praιiιts,
·andin ,particular, .inoome from
government S'ecurities andincome
~rom
bonds
ordeJbentti'res, 'including premi,ums and pr:izes
attaching
10
bonds or debentures. 'Penalty char–
gesfor la;te .payment s;haH
ησΙ
be regarded as
·interest ,for the
ρ.U'Ι1ΡΟse οί
tJhis article.
5. The proV1isions of
pa:ragraιphs
land 2 s'hall
ησΙ
apply
ί,ί
the :beneficial
σwner σί
the
inter~st.
being a resident
of
a Con1ttacting State carrles
ση
bU'siness
ίη
the other
CΟΜΙ1acΙίng
State in
wh,ich
~he
interest arises th'rougha permanent
estabHshmen;t si'tuated therein, or perfoIms
ί η
ιthat
otherState independent personal services
frσma 'ίίχΟΟ
basesituated therein, and the debt–
c1aimin respect o:f which the interest is paid is
e~fectively
connedted with such permanent
establishment or
fιixed
base. Insuch a case,
oιhe
p'rovisions
οί Artί'cle
7 or Ar'ticle
15,
as the
casemay be, s'hallapply.
,6.
Interest 'shaH be deemed
Ιο
be derived ,from
a
Contracting S'tate when the payer is :that Statc
itsel'f, an administrative territorj,al nnit or a 10cal
authori,ty theredf or a ,resident
σf
1!h,at State_
Where, :b:owever, the person paying th'e interest,
whether he is a 'resident ofa
Oontrao~ing
Statc
or
ποΙ,
'has
:ίη
'a
Contracting 'State ·a permanent
estaJblishment
ίn
connection with w,hioh the
.jndebtedness
οη
which the interest is paid was
incnrred, and such ,interest is bome Iby such
,permanent
estabIίsh'men
I
t,
then such interest shal1
be deemed
~o
,be derived fromthe Contracting
S'ta:te
,ίη
which .the permanent estalbIl'is'hment
is
si'tuated.
7. Where, ow,ing
ιο
a speoial relationship
ibetween
.ιh'e
payer ,and the recipien't or between
Iboth of them and some other person, theamount
οί
the interes:t
pa~d,
havingregatd
Ιο
the debt–
claim for whItch
ί'! ί'8
paid, exceeds the amount
'which would have been agreed
υΡοη
by
Φe
:payer and the reoipient
ίη
the absence
σf
such
'relationsιh,ip,
t:he
provisiσns
of this A'rticle shall
apply
οηlΥ
to thetast-mentionedamount.
Ιη
that case the excess ·part
όft'he
paym'ents S'hall
remain taxaIble according to the . Ilaw of each
Contracting
S1aΙe,
due 'regard being had
'to
the
other ·provisions of this
CΌηveηtίΌη.
Article
12
ROYALTUES
Ι. RΟΥaΙtίes
arisingina Contracting State
anιl
pa'id
to
a resident
of
the other
ContraCΙing
State
may be taxed
ίη
that other State.
2. However,
royaιlties σfthe
kindreferred to
ίη
S'ubparagraph (a)
οί
paragraph 3 ,may
be
taxe~
ίη
the Contracting State
ίη
w'h'ich they arise. and
according
ιο
the ]aw
οί
that Sta1e, but the tax