ob বাংলাদেশ গেজেট, অতিরিক্স, জানায়ারী ২, ১৯৯৪ - - 4. The term “interest" as used in this, Article means income from debtclaims of every kind, whether or not secured by mortgage and whether or not carrying a right to participate in the debtor's profits, and in particular, income from government. Securities. and income from bonds or debentures, including premiums and prizes attaching to such securitics, bonds or debentures. Penalty charges for late payment shall not be regarded as interest for the purpose of this Article. 5. The provisions of paragraphs 1 to 3 shall not apply if the beneficial owner of the interes; being a resident of a Contracting State, carries on Kosiness in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or performs in that other State professional services from a fixed base situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent olishment or fixed base. In such case the provisions of Article 7 or Article to as the case may be, shall apply. Interest shall be deemed to arise in a Contracting State when the payer is that Sta: itself, a Land, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, 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 indebtedfless on which the into paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be foemed to arise in the State in which the permanent establishment or fixed base is situated. 7. 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 interest having regard to the debt-claim for which it is 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 yments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement. Article 12 Royalties 1. Royalties arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State. 2. However, such royalties may also be taxed in the Contracting State in which they aro and according to the laws of that State, but if the recipient is the to eficial owner of the royalties the tax so charged shall not exceed 10 per cent of the gross amount of the royalties,
