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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

Royalties and Technical Fees

1. Royalties and technical fees arising in a Contracting State and paid to a resident of the other

Contracting State may be taxed in that other Contracting State.

2. However, such royalties and technical fees 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 of the technical fees

is a resident of the other Contracting State, the tax so charged shall not exceed:

(a) in the case of royalties, 10 per cent of the gross amount of such royalties;

(b) in the case of technical fees, 7.5 per cent of the gross amount of such fees.

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 cinematograph

films, or films or tapes used 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 concerning industrial, commercial or scientific experience.

4. The term "technical fees" as used in this Article means payments of any kind to any person, other

than payments to an employee of the person making the payments, in consideration for any services of a

managerial, technical or consultancy nature.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the royalties or

technical fees, being a resident of a Contracting State, carries on business in the other Contracting State in

which the royalties or technical fees 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 or contract in respect of which the royalties or technical fees are paid is effectively connected with

such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 14, as the case

may be, shall apply.

6. Royalties and technical fees 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 technical fees, whether he is a

resident of a Contracting State or not, has in a Contracting State a permanent establishment or fixed base in

connection with which the liability to pay the royalties and technical fees was incurred, and the payments are

borne by such permanent establishment or fixed base, then the royalties and technical fees 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 technical fees paidexceeds 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 13

Gains from the Alienation of Property

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred

to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent

establishment which an enterprise of a Contracting State has in the other Contracting State or of movable