AUSTRALIAN TAX TREATIES

Argentine Agreement  

AGREEMENT BETWEEN THE GOVERNMENT OF AUSTRALIA AND THE GOVERNMENT OF THE ARGENTINE REPUBLIC FOR THE AVOIDANCE OF DOUBLE TAXATION AND THE PREVENTION OF FISCAL EVASION WITH RESPECT TO TAXES ON INCOME  

ARTICLE 12   Royalties  

1  
Royalties arising in a Contracting State, being royalties to which a resident of the other Contracting State is beneficially entitled, may be taxed in that other State.

2  
Those royalties may also be taxed in the Contracting State in which they arise, and according to the law of that State, but the tax so charged shall not exceed:


(a) 10 per cent of the gross amount of the royalties in the case of payments or credits referred to in:


(i) subparagraph 3(a), provided that this subparagraph 2(a) applies only in relation to copyright of literary, dramatic, musical or other artistic work;

(ii) subparagraphs 3(b)-(d); and

(iii) subparagraph 3(j) that relate to any payment or credit referred to in subparagraphs 2(a)(i) or (ii);


(b) 10 per cent of the net amount of the royalties in the case of payments or credits referred to in subparagraph 3(e). For the purposes of this subparagraph 2(b), the net amount of a royalty refers to the amount of payments or credits remaining after the deduction of the expenses directly related to the rendering of the technical assistance and the costs and expenses of any equipment or material supplied by the provider of the assistance and for the specific purpose of rendering such assistance; and


(c) 15 per cent of the gross amount of the royalties in all other cases, including all copyright other than that referred to in subparagraph 2(a)(i).

3  
The term " royalties " in this Article means payments or credits, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for:


(a) the use of, or the right to use, any copyright, patent, design or model, plan, secret formula or process or other intangible property, trademark or other like property or right; or


(b) the use of, or the right to use, any industrial or scientific equipment; or


(c) the supply of scientific, technical, or industrial, knowledge or information; or


(d) the supply of any assistance that is ancillary and subsidiary to, and is furnished as a means of enabling the application or enjoyment of, any such property or right as is mentioned in subparagraph (a), any such equipment as is mentioned in subparagraph (b) or any such knowledge or information as is mentioned in subparagraph (c); or


(e) the rendering of any technical assistance not included in subparagraph 3(d); or


(f) the reception of, or the right to receive, visual images or sounds, or both, transmitted to the public by:


(i) satellite; or

(ii) cable, optic fibre or similar technology; or


(g) the use in connection with television broadcasting or radio broadcasting, or the right to use in connection with television broadcasting or radio broadcasting, visual images or sounds, or both, or other means of reproduction for use in connection with television broadcasting or radio broadcasting, transmitted by:


(i) satellite; or

(ii) cable, optic fibre or similar technology; or


(h) the use of, or the right to use:


(i) motion picture films; or

(ii) films or video tapes for use in connection with television; or

(iii) tapes for use in connection with radio broadcasting; or


(i) the use of, or the right to use, any commercial equipment, and the supply of commercial knowledge or information; or


(j) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph.

4  
The provisions of paragraph 2 shall not apply if the person beneficially entitled to 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 in that other State, or performs in that other State independent personal services from a fixed base situated in that other State, and the property or right in respect of which the royalties are paid or credited is effectively connected with that permanent establishment or fixed base. In that case the provisions of Article 7 or Article 14, as the case may be, shall apply.

5  
Royalties shall be deemed to arise in a Contracting State when the payer is that State itself or a political subdivision or local authority of that State or a person who is a resident of that State for the purposes of its tax. Where, however, the person paying the royalties, whether the person is a resident of a Contracting State or not, has in a Contracting State or outside both Contracting States a permanent establishment or fixed base in connection with which the liability to pay the royalties was incurred, and the royalties are borne by the permanent establishment or fixed base, then the royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6  
Where, by reason of a special relationship between the payer and the person beneficially entitled to the royalties, or between both of them and some other person, the amount of the royalties paid or credited, having regard to what they are paid or credited for, exceeds the amount which might reasonably have been expected to have been agreed upon by the payer and the person so entitled in the absence of such relationship, the provisions of this Article shall apply only to the lastmentioned amount. In that case the excess part of the amount of the royalties paid or credited shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.




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