Turkmenistan - Interest

Article 8. Interest

1. Interest arising in a State and paid to a resident of the other State shall be taxable only in that other State.

2. The term "interest" as used in this Article means income from debt-claims of every kind, whether or not secured by mortgage but
not carrying a right to participate in the debtor's profits, as well as any other income which is subjected to the same taxation treatment as interest by the laws of the State of which the person paying the interest is a resident.

3. The provisions of paragraph 1 shall not apply if the recipient of the interest, being a resident of a State, carries on business or performs activities other than employment in the other State in which the interest arises, through a permanent establishment situated therein and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 5 shall apply.

4. Where the amount of the interest paid exceeds the amount which would have been agreed upon between independent parties, the
excess part of the payments shall remain taxable according to the laws of each State, due regard being had to the other provisions of this Convention.