DT3876 - Botswana: double taxation agreement, Article 12: Royalties
This agreement applies for periods before the new
comprehensive agreement has effect (see DT3850).
- Royalties arising in a Contracting State which are derived and
beneficially owned by a resident of the other Contracting State may
be taxed in that other State.
- However, such 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 15 per cent of the gross
amount of the royalties.
- 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, and films or tapes 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.
- The provisions of paragraphs (1) and (2) of this Article shall
not apply if the beneficial owner of 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 therein, or performs in that other State
professional services from a fixed base situated therein, and the
right or property in respect of which the royalties are paid is
effectively connected with such permanent establishment or fixed
base. In such a case, the provisions of Article 7 or Article 13, as
the case may be, shall apply.
- Where, owing to a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties 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 that case, the excess part of the payments shall remain taxable according to the law of each Contracting State, due regard being had to the other provisions of this Agreement.
