Article 13 - Fees for technical services - Montenegro

ARTICLE 13 FEES FOR TECHNICAL SERVICES 1. Fees for technical services arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such fees for technical services 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 fees for technical services is a resident of the other Contracting State, the tax so charged shall not exceed 10 per cent of the gross amount of the fees for technical services. The competent authorities of the Contracting State shall by mutual agreement settle the mode of application of this limitation. 3. The term fee for technical services as used in this Article means payments of any kind received as a consideration for the rendering of any managerial, technical or technical or consultancy services (including the provision of services by technical or other personnel) but does not include payments for services mentioned in Articles 15 and 16. 4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the fees for technical services, being a resident of a Contracting State, carries on business in the other Contracting State in which the fees for technical services arise through a permanent establishment situated therein, or performs in that other states independent personal services from a fixed base situated therein, and the fee for technical services are effectively connected with such permanent establishment or fixed base. In such case the provisions of Article 7 or Article 15, as the case be, shall apply. 5. Fee for technical services shall be deemed to arise in a Contracting State when the payer is a resident of that state. Where, however the person paying the fees for technical services, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the liability to pay the fee for technical services was incurred and such fee or technical services are borne by such permanent establishment or fixed base, that such fee for technical services 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 beneficial owner or between both of them and some other person, the amount of the fees for technical services, having regard to the services for which they are paid exceeds the amount which would have been agreed upon by the tax payer and the beneficial owner is 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 bad to the other provisions of this Convention.