1. Dividends paid by a company which is a resident of a Contracting State to a  resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of  which the company paying the dividends is a resident and according to the laws of  that State, but if the recipient is the beneficial owner of the dividends the tax so  charged shall not exceed: 

a) 5 per cent of the gross amount of the dividends if the beneficial owner is  a company (other than a partnership) which holds directly at least 25 per cent of the  capital of the company paying the dividends; 

b) 15 per cent of the gross amount of the dividends in all other cases. 

The competent authorities of the Contracting State shall by mutual agreement  settle the mode of application of these limitations. 

This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.

3. The term “dividends” as used in this Article means income from shares,  “jouissance” shares or “jouissance” rights, mining shares, founders’ shares or other  rights, not being debt-claims, participating in profits, as well as income from other  corporate rights which is subjected to the same taxation treatment as income from  shares by the laws of the State of which the company making the distribution is a  resident. 

4. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner  of the dividends, being a resident of a Contracting State, carries on business in the  other Contracting State of which the company paying the dividends is a resident,  through a permanent establishment situated therein, or performs in that other State  independent personal services from a fixed base situated therein, and the holding in  respect of which the dividends are paid is effectively connected with such permanent  establishment or fixed base. In such case the provisions of Article 7 or Article 14, as  the case may be, shall apply. 

5. Where a company which is a resident of a Contracting State derives profits  or income from the other Contracting State, that other State may not impose any tax  on the dividends paid by the company, except insofar as such dividends are paid to a  resident of that other State or insofar as the holding in respect of which the dividends  are paid is effectively connected with a permanent establishment or a fixed base  situated in that other State, nor subject the company’s undistributed profits to a tax  on the company’s undistributed profits, even if the dividends paid or the  undistributed profits consist wholly or partly of profits or income arising in such  other State.