DT4160 - DT: Bulgaria: double taxation agreement, Article 11: Royalties
- Royalties arising in a Contracting State which are derived and
beneficially owned by a resident of the other Contracting State
shall be taxable only in that other State.
- The term `royalties` as used in this Article means payments of
any kind for the sale of, the use of, or the right to use, any
copyright of literary, artistic or scientific work (including
cinematograph films, films or tapes for radio or television
broadcasting and tapes for the production of gramophone records and
other means of sound reproduction). This term also includes
payments of any kind for the sale of, the use of, or the right to
use, any patent (certificate of invention), trade mark, service
mark, design or model, secret formula or process, industrial,
commercial or scientific equipment including any computer program
or for information concerning industrial, commercial or scientific
experience or knowledge or for the provision of technical services
connected with such sale, use or right of use.
- The provisions of paragraph (1) 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 of
this Convention, as the case may be, shall apply.
- 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 paid exceeds, for whatever
reasons, 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 a 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 Convention.
