DT7112 - DT: Fiji: double taxation agreement, Article 13: Royalties and management fees

(1) Royalties and management fees 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.

(2) Royalties derived and beneficially owned by a resident of a Contracting State 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.

(3) Management fees derived and beneficially owned by a resident of a Contracting State 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 net amount of the management fees after deduction of any amount allowed as expenses against those management fees in computing the tax payable thereon in the firstmentioned Contracting State.

(4)

(a) 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 but does not include royalties or other amounts paid in respect of the extraction or removal of natural resources.
(b) The term `management fees` as used in this Article means payments of any kind to any person, other than to an employee of the person making the payments, for, or in respect of, the provision of industrial, scientific or commercial advice, or management or technical services, or similar services or facilities, but it does not include payments for independent personal services mentioned in Article 15

(5) Notwithstanding the provisions of paragraph (2) of this Article, copyright royalties and other like payments in respect of the production or reproduction of any literary, artistic or scientific work (excluding royalties and like payments in respect of cinematograph films and films or tapes for radio or television broadcasting) arising in a Contracting State and which are derived and beneficially owned by a resident of the other Contracting State shall be exempt from tax in the first-mentioned Contracting State.

(6) The provisions of paragraphs (1), (2) and (3) of this Article shall not apply if the beneficial owner of the royalties or management fees, being a resident of a Contracting State, has in the other Contracting State in which the royalties or management fees arise, a permanent establishment and the right or property giving rise to the royalties is, or the management fees are, effectively connected with a business carried on through that permanent establishment. In such a case, the provisions of Article 8 shall apply.

(7) Royalties and management fees shall be deemed to arise in a Contracting State where the payer is that State itself, a local authority or a resident of that State. Where however, the person paying the royalties or management fees, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the obligation to pay the royalties or management fees was incurred and the royalties or management fees are borne by that permanent establishment, then the royalties or management fees shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

(8) 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 or management fees paid, having regard to the advice, services, use, right or information for which they are 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 Convention.