1. Royalties arising in a Contracting State and paid to a resident of the other  Contracting State shall be taxable only in that other State if such resident is the  beneficial owner of the royalties. 

2. 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, any patent, trade  mark, design or model, plan, secret formula or process, or for information concerning  industrial, commercial or scientific experience. 

3. The provisions of paragraph 1 shall not apply if the beneficial owner of the  royalties, being a resident of a Contracting State, carries on business in the other  Contracting State in which the royalties arise, through a permanent establishment  situated therein, or performs in that other State independent personal services from a  fixed base situated therein, and the right or property in respect of which the royalties  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. 

4.Where, by reason of a special relationship between the payer and the  beneficial owner or between both of them and some other person, the amount of the  royalties, having regard to the 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 such 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 Agreement.

5. Royalties shall be deemed to arise in a Contracting State when the payer is  the State itself, a political subdivision, a local authority or a resident of that State.  Where, however, the person paying the royalties, whether he is a resident of a  Contracting State or not, has in a Contracting State a permanent establishment or a  fixed base in connection with which the liability to pay the royalties was incurred,  and such royalties are borne by such permanent establishment or fixed base, then  such royalties shall be deemed to arise in the State in which the permanent  establishment or fixed base is situated.