b) 15 per cent of the gross amount of the dividends in all other cases.

This paragraph shall not affect the taxation of the company in respect of the profits out

of which the dividends are paid.

The competent authorities of the Contracting States shall by mutual agreement settle the

mode of application of these limitations.

3. The term “dividends” as used in this Article means income from shares or other rights, not being debt-claims, participating in profits, as well as income from other

corporate rights which is subjected to the same taxation treatment as income from

shares by the laws of the State of which the company making the distribution is a

resident. The term also includes profits attributed under an arrangement for participation

in profits (“associação em participação”).

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of

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

Contracting State of which the company paying the dividends is a resident, through a

permanent establishment situated therein, or performs in that other State independent

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. In such a case the provisions of Article 7 or Article 14, as the case may be,

shall apply.

5. Where a company which is a resident of a Contracting State derives profits or

income from the other Contracting State, that other State may not impose any tax on the

dividends paid by the company, except insofar as such dividends are paid to a resident

of that other State or insofar as the holding in respect of which the dividends are paid is

effectively connected with a permanent establishment or a fixed base situated in that

other State, nor subject the company's undistributed profits to a tax on the company's

undistributed profits, even if the dividends paid or the undistributed profits consist

wholly or partly of profits or income arising in such other State.

6. Where a company, which is a resident of a Contracting State having a permanent

establishment in the other Contracting State, derives profits from that permanent

establishment, any such profits of the permanent establishment that are actually remitted

to the company which is a resident of the first-mentioned Contracting State may,

notwithstanding any other provisions of the Convention, be taxed in accordance with

the law of the other Contracting State, but the rate of tax imposed on such remittances

shall not exceed 5 percent.

ARTICLE 11

INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other

Contracting State may be taxed in that other State.

23 DE AGOSTO DE 2014____________________________________________________________________________________________________________

33