Document ID: chunk:federal_register_of_legislation:C2004A01066:schedule:3a:p6
Version: federal_register_of_legislation:C2004A01066
Segment Type: schedule
Provision Reference: sch 3A (pt 6/10)
Character Range: 16826–19503

paragraph.".

2. A new paragraph (7) shall be added to Article 12 of the Convention as follows:

 "(7) Without prejudice to whether or not such payments would be dealt with as royalties under this Article in the absence of this paragraph, the term "royalties" as used in this Article shall not include payments or credits made as consideration for the supply of, or the right to use, source code in a computer software program, provided that the right to use the source code is limited to such use as is necessary to enable effective operation of the program by the user.".

3. A new paragraph (8) shall be added to Article 12 of the Convention as follows:

 "(8) Without prejudice to whether or not such payments would be dealt with as royalties under this Article in the absence of this paragraph, the term "royalties" as used in this Article shall include payments or credits, whether periodical or not, and however described or computed, to the extent to which they are made as consideration for:

(a) the reception of, or the right to receive, visual images or sounds, or both, that are transmitted to the public by satellite or by cable, optic fibre or similar technology; or

(b) the use of, or the right to use, in connection with television or radio broadcasting, visual images or sounds, or both, that are transmitted by satellite or by cable, optic fibre or similar technology; or

(c) total or partial forbearance in respect of the use or supply of any property or right referred to in this paragraph.".

ARTICLE 11

 Article 13 of the Convention shall be deleted and replaced by the following:

"Article 13

Alienation of Property

 (1) Income, profits or gains derived by a resident of a Contracting State from the alienation of real property situated in the other Contracting State may be taxed in that other State.

 (2) Income, profits 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 a Contracting State 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, profits 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.

 (3) Income, profits or gains from the alienation of ships or aircraft operated in international traffic, or of property, other than real property, pertaining to the operation of those ships or aircraft, shall be taxable only in the Contracting State