Ireland - Royalty

Article 10. Royalties

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

2.  The term “royalties” as used in this Article means payments of any kind received as consideration for the use of, or the right to use, any copyright of literary, artistic or scientific work (including cinematograph films and films or tapes for radio or television broadcasting), any patent, trade mark, trade name. 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. 

3.  The competent authorities of the States shall by mutual agreement settle the mode in which the State in which, the royalties arise abandons its taxation. 

4.  The provisions of Paragraph 1 shall not apply if the recipient of the royalties, being a resident of one of the States, has in the other State in which the royalties arise a permanent establishment with which the right of property giving rise to the royalties is effectively connected. In such a case, the provisions of Article 5 shall apply. 

5.  Where, owing to a special relationship between the payer and the recipient or between both of them and some other person, the amount of the royalties paid, 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 recipient in the absence of such relationship, the provisions of this Article shall apply only to the last-mentioned amount. In that case, the excess part of the payment shall remain taxable according to the law of each State, due regard being had to the other provisions of this Convention. 

Protocol:

I. Ad Articles 8, 9 and 10.

Applications for the restitution of tax levied contrary to the provisions of Articles 8, 9 and 10 have to be lodged with the competent authority of the State having levied the tax within a period of six years after the expiration of the year in which the tax bas been levied.

II. Ad Articles 9 and 10.

It is understood that interest and royalties paid by a resident of Ireland to a resident of the Netherlands shall be allowed as a deduction in the computation of the corporation profits tax charged on the payer.