DT5960 - DT: Denmark: double taxation agreement, Article 11: Interest
- Interest arising in a Contracting State which is derived and
beneficially owned by a resident of the other Contracting State
shall be taxable only in that other State.
- The term 'interest' as used in this Article means income from
debt-claims of every kind, whether or not secured by mortgage and
whether or not carrying a right to participate in the debtor's
profits, and in particular, income from government securities and
income from bonds or debentures, including premiums and prizes
attaching to such securities, bonds or debentures but does not
include income dealt with in Article 10. Penalty charges for late
payment shall not be regarded as interest for the purpose of this
Article.
- The provisions of paragraph (1) of this Article shall not apply
if the beneficial owner of the interest, being a resident of a
Contracting State, carries on business in the other Contracting
State in which the interest arises, through a permanent
establishment situated therein, or performs in that other State
independent personal services from a fixed base situated therein,
and the debt-claim in respect of which the interest is 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.
- 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 interest exceeds, for whatever reason, 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 laws of each Contracting State, due regard being
had to the other provisions of this Convention.
- Any provision in the law of either Contracting State relating
only to interest paid to a non-resident company shall not operate
so as to require such interest paid to a resident of the other
Contracting State to be treated as a distribution by the company
paying such interest.
- The provisions of this Article shall not apply if it was the
main purpose or one of the main purposes of any person concerned
with the creation or assignment of the debt-claim in respect to
which the interest is paid to take advantage of this Article by
means of that creation or assignment.
