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430 ΕΠΙΣΗΜΟΣ ΕΦΗΜΕΡΙΣ ΤΗΣ 7ης ΜΑ'Ι'ΟΥ 1982
2. However. such dividends may also be taxed
ίn the Contractίng State οί which the company
paying the dividends is a resident, and according
Ιο the laws οί that State. but the tax 50 charged
shall ηοΙ exceed:
(a) 5 per cent οί the gross amount οί the
dividends ίί the recipient is a company
which holds directly at least 25 per cent
οί the capital οί the company paying the
dividends;
(b) 15 per cent οί the gross amount οί the
dividends ίη all other cases.
This paragraph shall ηοΙ affect the taxation οί
the company ίη resρect of the profits ουΙ οί
which the dividends are paid.
3. Ιη the case οί Cyprus. however, dividends
paίd by a company which is a reSιident οί Cy–
prus Ιο a resident οί th'e Hunga:rian People's
Republic shall be exempt fromany tax ίη Cy–
prus which may be chargea:ble ση dividends ίη
addition to the tax chargeable οη the profit,s or
income of the company.
4. The term "dividends" as used ίη this
Article means income from shares. or other
rights, not being debt-claims. participating ίη
profits, as well as income from other corporate
rights which is sub'jected Ιο the same taxation
treatment as income from shares by the laws of
the State of which the comρany making the
distribution is a resident.
5. The provisions οί paragraphs 1 and 2 shall
ησΙ apply ίί the recipient of the dividends, ,being
a resident of a Contracting State, carries οη bu–
siness ίη the other Contracting State of which
the company paying the dividends is a 'resident,
through a permanent establishment situated
therein, or perfoιms in that other State inde–
pendent personal services from a fixed base
situated therein, and the holding in respect of
which the dividends are paid is effectively
connected with such permanent establishment or
fixed base. Ιη such case, the provisions οί
Article 7 or Article 14, as the case may be, shall
apply.
6. Where a company which is a resident of
a Contractίng State derives profits or income
from the other Contracting State, that other State
may ηοΙ impose any tax οη the dividends paid
by the company. except ίn 50 far as such divi–
dends are paid to a resident of that other State
or ίη so far as the holding ίn respect of which
the dividends are paid is effectively connected
with a permanent establishment or a fixed base
situated ίη that other State, nor subject the
company's undistributed profits Ιο a tax οη the
company's undistributed profits, even ί·ί the di–
vidends paid or the uηdίsiήbuted profits consist
wholl}' or partly οΕ profits or income arising ίη
such other State.
Article 11
INTEREST
1. Ιηtere6Ι arising ίη a Contraoting State and
paid Ιο a resident of the dther Contraating State
may be taxed ίη that other Contract:ing Starte.
2. However. interest derived from one of t:he
Contracting State" by a resident of the σther
Contracting State who is the benefici'al owner
thereof, may also be taxed ίη the first-mentioned
Contracting State at a rate ηοΙ exceeding 1Ο per
cent οί the gross amount thereof.
3. Notwithstanding the provisions οί paragraph
2. intere~t arising ίη a Contracting State and
deri \,'ed by the Govemment σf the other Con–
tracting State incJuding polίrical ~ubd'iνisions and
Joca] authorities thereof. the Central Bank οί that
other Contracting State or any financial institu–
tion who))y owned by that Government, or by any
resident of the other Contraoting Sta1:e with
respect to debt-claim,s guaranteed or indireotly
financed by the Governmen'i οί rha1 otιher Ο:>η­
tracting Sta'te including poIίιtίαιl su'bdivisions and
local ant·hori:ties thereof, the Central Bank οΙ
Ι ·th'at otJher Contraoting Sta!te or any financial
insrti,tution wholly owned by that Govemment
shaH be exempt from tax ίn the J.1irst-ment1oned
ConItracting Sta'te.
4. NO'twithsrtand,ing the pro\'1i':;lons οί paragraph
2, iηter~t aΓisiηg ίn a Contradting Sta:te and
derived by a resident οί the ot!ber Contracting
State οη loans ίη the ίοηη οί deferred payments
sha.J1 be exempt from tax ίη rh'a:t first-mentioned
Contracting State if the reaipi'ent is t'he benc–
ficial owner οί the in1:erest.
5. The term "intereSlt" as used ίη thi·s Article
means income from debt-cl'ai,ms of every k'ind,
whether or ηαι secured by mortgage, and whether
or παΙ carrying a right Ιο pal1lJicipate ίη the
deb~or' s profiJts, and ίη particula'r, income f{om
government securlitles and inoome from bonds or
debentures, includ.ing premiums and priz~ at–
taching to bonds or debentures.
6. The pl"ovis·ions οί ΡaΓagraΡh 1 shall ησt
apply ίί the recipient οί the interest, being a
res:ident οι a Contracting S'mte, canties οη bu'si–
nes's ίη the other Contracting S'taite ίη which the
inreresιt arises, through a permanenιt esta.b1iSlh–
ment s:~tua:ted thereιin, or perrorms ίη tha:t other
St:a:te ind'ependen:r personal seIΎ!ices from a fixed
base si,tua!ted therein, and the debt-claim ίn respeot
οί W'rnch tJhe interest j,s paid is eJJfect1ίvely coo–
neoted w·ith suoh permanent es!ta:blιis,hment or
f,ixed base. Ιη such case, the provi:sions of
Article 7 or ΑΓtίcΙe 14, as the case may be,
shall apply.
7. WIhere by reason οί a ιspeci'a!l rel,a1JroΠ'Ship ,
between the payer and the recipienιt or betwe~ll
both of them and some ather person, the amount
σf the interes<1, having regard Ιο the debt-claim
for whIich i,t is paid, exceed's the amount which
wou1d have been agreed υροη by the payer and
·tJhe [ωρίοοι ίη th'e a:bsence σf such relationsmp,
tJhe p1rovιisions οί this Article S1hiall app]y οηlΥ
Ιο 1Jhe lasιt-meni~ioned amount. Τη suoh ca:se, the
excess part οί the paymen1t's S'hall rem'a:in tax'a:ble
according Ιο the laws of each Contracting Staιte,
due regard being had to t1he other provisions
ο[ thi·s Cοηveηt1Όη.
Article ]2
ROYALTIES
1. Royalties arising ίη a Contracting S·tJa:te and
ρaid to a res,idenιt of the ouher Contract'ing State
shall be taxa1)le οηlΥ ία Ιhat .O't!her Sιtate ί,ί such
resident is the reoipient οί 'the royalties.
2. l1he term " royalties " as used ίη tιhis Article
means payments σί any kind receιived as a οοη­
sideration for 1Jhe use οί, or the right 10 use,
any copyrighrt οί 1iterary, artis1ic or sCjientίfic
work (inolnding cinema·rograph fHms, and films
or tapes fur radio or teleV1j Ision broadoastJing) any
pa1:ent. trade ma-rk, design or model, plan. secret
formuJa ar process, or for Jthe use of or the
rigb:t Ιο use industl"i'al, commercial, or scientιific
equipment, or for infurrna:tion conceming indu–
strial, oommerci'al or scienHfic eχρeήeηce.
3. T'he provisions of paragraph 1 shall ησΙ
apply ίί Jthe recipient οί the royralties, beίng a
resident of a Contra~ing StaJte, carήes ση busi–
ness ίη the other GoΠ'trac~tίηg Sta'Le ί'Ο w,hiich the
royal'ties af1ise. through a ρermanent es1Ja!blιish­
ment si·tuaιted therein, or perfomιs ίη rh'at dther
State ίndependent person:al services from a ,fixed
base situa'ted therein, and the right or property
ίη respect of which the royaIties are paid is ef–
fecΙίveΙΥ conneoted wirh sucJh permanent estab1ish–
ment or fixed base. Ιη suoh case, the provisίons
σf Article 7 or Artiole 14, as the case m'ay be,
shalI apply .