Document ID: chunk:federal_register_of_legislation:C2004A00987:schedule:2a:p8
Version: federal_register_of_legislation:C2004A00987
Segment Type: schedule
Provision Reference: sch 2A (pt 8/14)
Character Range: 71378–74150

its domestic law.
(10) Where interest expense is deductible in determining the profits, income or gains of a company resident in one of the Contracting States, being profits, income or gains which:
    (a) are attributable to a permanent establishment of that company in the other Contracting State; or
    (b) may be taxed in the other Contracting State under Article 6 (Income from Real Property) or paragraph (1) or (3) of Article 13 (Alienation of Property),
and that interest expense exceeds the interest paid by that permanent establishment or paid with respect to the debt secured by real property located in the other Contracting State, the amount of that excess shall be deemed to be interest arising in that other Contracting State to which a resident of the first‑mentioned Contracting State is beneficially entitled.".

ARTICLE 8
Article 12 of the Convention is amended by:
(a) omitting "10" and substituting "5" in paragraph (2); and
(b) omitting sub‑paragraph (a) of paragraph (4) and substituting:
    "(a) payments or credits of any kind to the extent to which they are consideration for the use of or the right to use any:
        (i) copyright, patent, design or model, plan, secret formula or process, trademark or other like property or right;
        (ii) motion picture films; or
        (iii) films or audio or video tapes or disks, or any other means of image or sound reproduction or transmission for use in connection with television, radio or other broadcasting;".

ARTICLE 9
Article 13 of the Convention is amended by:
(a) omitting paragraph (3) and substituting:
    "(3) Income or gains from the alienation of property, other than real property, that forms part of the business property of a permanent establishment which an enterprise of one of the Contracting States has in the other Contracting State or pertains to a fixed base available in that other State to a resident of the first‑mentioned State for the purpose of performing independent personal services, including income or gains from the alienation of that permanent establishment (alone or with the whole enterprise) or of that fixed base, may be taxed in that other State.
    (4)                Income or gains derived by an enterprise of one of the Contracting States from the alienation of ships, aircraft or containers operated or used in international traffic or property, other than real property, pertaining to the operation or use of such ships, aircraft, or containers shall be taxable only in that State.
    (5) Where an individual who, upon ceasing to be a resident of one of the Contracting States, is treated under the taxation law of that State as having alienated any property and is taxed in that State by reason thereof, the individual may elect to be treated