DTT Austria/Serbia | DTT Austria/Serbia vs OECD-MC |
Entry into force | 17 December 2010 |
Effective Date | 1 January 2011 |
Art 4 Resident | Art 4 of this Convention does not contain any special provisions in contrast to the OECD-MC. |
Art 5 Permanent establishment | Art 5 of this Convention corresponds to the OECD-MC. |
Art 6 Income from immovable property | In contrast to the OECD-MC, Art 6 para 4 of this Convention stipulates that the provisions of para 1 and para 3 of this Article shall also apply to income from immovable property in use for the performance of independent personal services. This means that income derived from such immovable property situated in the other Contracting State is taxable in the other Contracting State. |
Art 7 Business profits | Art 7 of this Convention corresponds to Art 7 of the OECD-MC. |
Art 8 International transport | Art 8 of this Convention corresponds to the OECD-MC. |
Art 10 Dividends | In accordance with the OECD-MC, Art 10 para 2 lit a of this Convention states that dividends may be taxed in the Contracting State of which the legal entity paying the dividends is a resident and according to the laws of that State, but the withholding tax shall not exceed 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 and in all other cases, the withholding tax shall not exceed 15 per cent of the gross amount of the dividends. |
Art 11 Interest | Corresponding to the OECD-MC, Art 11 para 2 of this Convention states that interest may also be taxed in the Contracting State in which it arises and according to the laws of that State, but the withholding tax shall not exceed 10 per cent of the gross amount of the interest. |
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Art 11 para 3 of this Convention provides that, notwithstanding the provisions of para 2, interest arising in a State shall be taxable only in the Contracting State of which the recipient is a resident, if such recipient is the beneficial owner of the interest and such interest is derived by the Government of the other Contracting State or political subdivisions or local authorities thereof or the Central or National Bank of the other Contracting State or a financial institution controlled or mainly owned by the Government of the other Contracting State or political subdivisions or local authorities thereof. | |
Art 12 Royalties | Art 12 para 2 of this Convention, in contrast to the OECD-MC, contains a special provision stipulating that royalties may also be taxed in the Contracting State in which they arise and according to the laws of that State, but if the recipient is the beneficial owner of the royalties, the withholding tax shall not exceed 5 per cent of the gross amount of the royalties for the use of, or the right to use, any copyright of literary, artistic or scientific work including cinematograph films or films or tapes used for radio or television broadcasting and shall not exceed 10 per cent of the gross amount of the royalties for the use of, or the right to use, 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. |
Art 13 Capital gains | Art 13 of this Convention contains a special provision concerning gains from the alienation of shares or comparable interests deriving more than 50 per cent of their value directly or indirectly from immovable property. |
Art 14 Independent personal services | This Convention still includes an Art 14 (which is deleted in the OECD-MC) stating that income derived from professional activities or other activities of an independent character shall be taxable only in the State of residence, except if the earner has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities or if his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days |
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in any twelve month period commencing or ending in the fiscal year concerned (and this only applies to the income that is attributable to the fixed base or activities performed in that state). | |
Art 15 Income from employment | Art 15 para 4 of this Convention contains a special provision concerning remuneration derived by a resident of a Contracting State if the remuneration is paid in respect of an employment exercised in the other Contracting State in connection with a building site, a construction or installation project in connection therewith, for the period of twelve months during which such site or project do not constitute a permanent establishment in that other State. |
Art 16 Directors' fees | Art 16 of this Convention – in accordance with Art 16 of the OECD-MC – includes special provisions concerning directors' fees. |
Art 17 Artistes and sportspersons | Art 17 para 3 of this Convention, in contrast to the OECD-MC, provides that income derived from the activities performed within the framework of cultural or sports exchanges programme approved by the Contracting States shall be exempt from tax. |
Art 21 Professors and researchers | In contrast the OECD-MC, Art 21 of this Convention contains special provisions concerning individuals who are teaching or carrying out research. |
Art 22 Other income | Pursuant to Art 22 of the OECD-MC, Art 22 of this Convention states that income not dealt with in the other articles of the Convention shall be taxable only in the State of residence. |
Art 24 Elimination of double taxation | According to Art 24 of this Convention, double taxation shall be avoided in Austria by the exemption method with progression and in Serbia by the credit method. |
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Art 27 Exchange of information | Art 27 para 1 of this Convention stipulates that the competent authorities of the Contracting States shall exchange information concerning taxes of every kind and description imposed on behalf of the Contracting States, or of their political subdivisions or local authorities, insofar as the taxation thereunder is not contrary to the provisions of the Agreement. |
