Article 4: Resident

1. For the purposes of this Agreement, the term “resident of one of the States” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, legal head office, place of management, or any other criterion of a similar nature.

2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a. He shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b. If the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c. If he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; d. If he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3. Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated. However, where such person has its place of effective management in one of the States and its legal head office in the other State, then the competent authorities of the Contracting States shall determine by mutual agreement the State of which the person shall be deemed to be a resident for the purposes of this Agreement.

Artikel 5: Fast driftssted

1. I denne overenskomst betyder udtrykket “fast driftssted” et fast forretningssted, gennem hvilket et foretagendes virksomhed helt eller delvis udøves.

2. Udtrykket “fast driftssted” skal navnlig omfatte: a. et sted, hvorfra et foretagende ledes; b. en filial; c. et kontor; d. en fabrik; e. et værksted; og f. en mine, en olie- eller gaskilde, et stenbrud eller ethvert andet sted, hvor naturforekomster udvindes.

3. Et bygnings-, anlægs-, samle- eller monteringsarbejde udgør kun et fast driftssted, hvis det varer mere end 6 måneder.

4. Uanset de foranstående bestemmelser i denne artikel skal udtrykket “fast driftssted” anses for ikke at omfatte: a. anvendelsen af indretninger udelukkende til oplagring, udstilling eller udlevering af varer tilhørende foretagendet; b. opretholdelsen af et varelager, tilhørende foretagendet, udelukkende til oplagring, udstilling eller udlevering; c. opretholdelsen af et varelager, tilhørende foretagendet, udelukkende til bearbejdelse hos et andet foretagende; d. opretholdelsen af et fast forretningssted udelukkende for at foretage indkøb af varer eller indsamle oplysninger til foretagendet; e. opretholdelsen af et fast forretningssted udelukkende for at udøve enhver anden virksomhed for foretagendet, der er af forberedende eller hjælpende karakter; f. opretholdelsen af et fast forretningssted udelukkende til samtidig udøvelse af flere af de i litra a) – e) nævnte virksomheder, forudsat at det faste forretningssteds samlede virksomhed, der er resultat heraf, er af forberedende eller hjælpende karakter.

5. Uanset bestemmelserne i stykke 1, 2 og 3 skal i tilfælde, hvor en person – der ikke er en sådan uafhængig repræsentant, som omhandles i stykke 6 – handler i en kontraherende stat på vegne af et foretagende i den anden kontraherende stat, dette foretagende anses for at have et fast driftssted i den førstnævnte kontraherende stat med hensyn til hele den virksomhed, som denne person påtager sig for foretagendet, hvis denne person: a. har og sædvanligvis udøver i denne stat en fuldmagt til at indgå aftaler i foretagendets navn, medmindre denne persons virksomhed er begrænset til sådanne forhold, som er nævnt i stykke 4, og som, hvis de var udøvet gennem et fast forretningssted, ikke ville gøre dette faste forretningssted til et fast driftssted efter bestemmelserne i nævnte stykke; eller b. ikke har nogen sådan fuldmagt, men sædvanligvis opretholder i den førstnævnte stat et varelager, hvorfra han regelmæssigt leverer varer på foretagendets vegne.

6. Et foretagende i en kontraherende stat skal ikke anses for at have et fast driftssted i den anden kontraherende stat, blot fordi det driver erhvervsvirksomhed i denne anden stat gennem en mægler, kommissionær eller anden uafhængig repræsentant, forudsat at disse personer handler inden for deres sædvanlige erhvervsvirksomheds rammer.

7. Den omstændighed, at et selskab, der er hjemmehørende i en kontraherende stat, behersker eller beherskes af et selskab, der er hjemmehørende i den anden kontraherende stat, eller som (enten gennem et fast driftssted eller på anden måde) udøver erhvervsvirksomhed i denne anden stat, skal ikke i sig selv medføre, at et af de to selskaber anses for et fast driftssted for det andet.

Artikel 6: Indkomst af fast ejendom

1. Indkomst, som en person, der er hjemmehørende i en kontraherende stat, oppebærer af fast ejendom (herunder indkomst af land- eller skovbrug), der er beliggende i den anden kontraherende stat, kan beskattes i denne anden stat.

2. Udtrykket “fast ejendom” skal tillægges den betydning, som det har i lovgivningen i den kontraherende stat, hvori den pågældende ejendom er beliggende og skal omfatte enhver option eller tilsvarende rettigheder med hensyn til denne. Udtrykket skal i alle tilfælde omfatte:

   • Tilbehør til fast ejendom
   • Besætning og redskaber, der anvendes i land- og skovbrug
   • Fiskeripladser af enhver art
   • Rettigheder, på hvilke civilretten om fast ejendom finder anvendelse
   • Brugsrettigheder til fast ejendom
   • Rettigheder til varierende eller faste ydelser, der betales for efterforskning og udnyttelse af mineralforekomster, kilder og andre naturforekomster
   • Rettigheder til beløb, som udregnes under henvisning til mængden eller værdien af produktionen fra sådanne forekomster

   Skibe, både og luftfartøjer skal ikke anses for fast ejendom.

3. Bestemmelserne i stykke 1 skal finde anvendelse på indkomst, der hidrører fra direkte brug, udlejning eller fra enhver anden form for benyttelse af fast ejendom.

4. Bestemmelserne i stykke 1 og 3 skal også finde anvendelse på indkomst af fast ejendom, der tilhører et foretagende, og på indkomst af fast ejendom, der anvendes ved udøvelse af frit erhverv.

Article 6: Income from Immovable Property

1. Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated and shall include any option or similar rights in respect thereof. The term shall in any case include:

   • Property accessory to immovable property
   • Livestock and equipment used in agriculture and forestry
   • Fishing places of every kind
   • Rights to which the provisions of general law respecting landed property apply
   • Usufruct of immovable property
   • Rights to variable or fixed payments as consideration for exploration and exploitation of mineral deposits, sources, and other natural resources
   • Rights to amounts computed by reference to the amount or value of production from such resources

   Ships, boats, and aircraft shall not be regarded as immovable property.

3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4. The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

Artikel 7: Fortjeneste ved erhvervsvirksomhed

1. Fortjeneste indvundet af et foretagende i en kontraherende stat kan kun beskattes i denne stat, medmindre foretagendet driver erhvervsvirksomhed i den anden kontraherende stat gennem et der beliggende fast driftssted. Såfremt foretagendet driver en sådan virksomhed, kan dets fortjeneste beskattes i den anden stat, men dog kun for så vidt angår den del deraf, som kan henføres til dette faste driftssted.

2. Under iagttagelse af bestemmelserne i stykke 3 skal der i tilfælde, hvor et foretagende i en kontraherende stat driver erhvervsvirksomhed i den anden kontraherende stat gennem et der beliggende fast driftssted, i hver kontraherende stat til dette faste driftssted henføres den fortjeneste, som det kunne forventes at ville have opnået, hvis det havde været et frit og uafhængigt foretagende, som udøvede den samme eller lignende virksomhed på samme eller lignende vilkår, og som under fuldstændig frie forhold afsluttede forretninger med det foretagende, hvis faste driftssted det er.

3. Ved fastsættelsen af et fast driftssteds fortjeneste skal det være tilladt at fradrage omkostninger, som er afholdt for det faste driftssted, herunder generalomkostninger til ledelse og administration, hvad enten de er afholdt i den stat, hvori det faste driftssted er beliggende, eller andre steder. Der skal imidlertid ikke indrømmes sådant fradrag for eventuelle beløb, der (på anden måde end som godtgørelse af faktiske udgifter) betales af det faste driftssted til foretagendets hovedkontor eller til noget af dets øvrige kontorer som royalties, honorarer eller andre lignende betalinger for benyttelsen af patenter eller andre rettigheder eller som provision for udførelse af særlige tjenester eller for administration eller, bortset fra tilfælde hvor der er tale om et bankforetagende, som rente af pengebeløb, der er udlånt til det faste driftssted. På samme måde skal der ved fastsættelsen af et fast driftssteds fortjeneste ikke tages hensyn til beløb, der (på anden måde end som godtgørelse af faktiske udgifter) af det faste driftssted pålægges foretagendets hovedkontor eller noget af dets øvrige kontorer at betale som royalties, honorarer eller andre lignende betalinger for benyttelsen af patenter eller andre rettigheder eller som provision for udførelse af særlige tjenester eller for administration eller, bortset fra tilfælde hvor der er tale om et bankforetagende, som rente af pengebeløb udlånt til foretagendets hovedkontor eller til noget af dets øvrige kontorer.

4. Ingen fortjeneste skal kunne henføres til et fast driftssted, blot fordi dette faste driftssted har foretaget indkøb af varer for foretagendet.

5. Ved anvendelsen af de foranstående stykker skal den fortjeneste, der henføres til det faste driftssted, fastsættes efter samme metode hvert år, medmindre der er god og fyldestgørende grund til at anvende en anden fremgangsmåde.

6. I tilfælde, hvor en fortjeneste omfatter indkomster, som er omhandlet særskilt i andre artikler i denne overenskomst, skal bestemmelserne i disse andre artikler ikke berøres af bestemmelserne i denne artikel.

Article 7: Business Profits

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. However, no such deduction shall be allowed in respect of amounts, if any, paid (otherwise than towards reimbursement of actual expenses) by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the permanent establishment. Likewise, no account shall be taken, in the determination of the profits of a permanent establishment, of amounts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on money lent to the head office of the enterprise or any of its other offices.

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5. For the purposes of the preceding paragraphs, the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6. Where profits include items of income which are dealt with separately in other Articles of this Convention, then the provisions of those Articles shall not be affected by the provisions of this Article.

Artikel 8: Skibsfart, Luftfart og Vejtransport

1. Fortjeneste ved skibsvirksomhed i international trafik, der oppebæres af et foretagende, hjemmehørende i en kontraherende stat, kan kun beskattes i denne stat. Sådan fortjeneste kan imidlertid også beskattes i den anden kontraherende stat, såfremt den oppebæres ved skibsvirksomhed fra denne anden stat, men den skat, der pålægges i denne anden stat, skal nedsættes med et beløb, svarende til 50 pct. af skatten.

   Sådan fortjeneste omfatter også indkomst indvundet af foretagendet ved anvendelse, rådighedsstillelse eller udleje af containere (herunder anhængere, pramme og lignende materiel til transport af containere), anvendt til transport af varer i international trafik, hvis denne indkomst udgør en del af den fortjeneste, som er omhandlet i det foregående afsnit.

2. Fortjeneste, der oppebæres ved luftfartsvirksomhed eller ved transport med køretøjer i international trafik af et foretagende, som er hjemmehørende i en kontraherende stat, kan kun beskattes i denne stat.

3. Med hensyn til fortjeneste, som oppebæres af luftfartskonsortiet Scandinavian Airlines System (SAS), skal bestemmelserne i stykke 2 kun finde anvendelse på den del af fortjenesten, som svarer til den andel i konsortiet, der ejes af den danske partner i Scandinavian Airlines System (SAS), Det Danske Luftfartselskab (DDL).

4. Bestemmelserne i stykke 1 og 2 skal også finde anvendelse på fortjeneste ved deltagelsen i en pool, i et konsortium eller i en international driftsorganisation.

Article 8: Shipping, Air, and Land Transport

1. Profits of an enterprise of a Contracting State from the operation of ships in international traffic shall be taxable only in that State. However, such profits may also be taxed in the other Contracting State provided that the profits are derived from shipping from that other State but the tax chargeable in that other State shall be reduced by an amount equal to fifty percent of such tax.

   These profits also include income derived by the enterprise from the use, maintenance, or rental of containers (including trailers, barges, and related equipment for the transport of containers) used for the transport of goods and merchandise in international traffic, if this income is incidental to the profits referred to in the preceding subparagraph.

2. Profits of an enterprise of a Contracting State from the operation of aircraft or road vehicles in international traffic shall be taxable only in that State.

3. With respect to profits derived by the air transport consortium Scandinavian Airlines System (SAS), the provisions of paragraph 2 shall apply, but only to such part of the profits as corresponds to the participation held in that consortium by Det Danske Luftfartsselskab (DDL), the Danish partner of Scandinavian Airlines System (SAS).

4. The provisions of paragraphs 1 and 2 shall also apply to profits from participation in a pool, a joint business, or an international operating agency.

Artikel 9: Indbyrdes Forbundne Foretagender

1. I tilfælde, hvor a) et foretagende i en kontraherende stat direkte eller indirekte har del i ledelsen af, kontrollen af eller kapitalen i et foretagende i den anden kontraherende stat, eller b) samme personer direkte eller indirekte har del i ledelsen af, kontrollen af eller kapitalen i såvel et foretagende i en kontraherende stat som et foretagende i den anden kontraherende stat,

   og der i noget af disse tilfælde mellem de to foretagender er aftalt eller fastsat vilkår vedrørende deres kommercielle eller finansielle forbindelser, der afviger fra de vilkår, som ville være blevet aftalt mellem uafhængige foretagender, kan enhver fortjeneste, som, hvis disse vilkår ikke havde foreligget, ville være tilfaldet et af disse foretagender, men som på grund af disse vilkår ikke er tilfaldet dette, medregnes til dette foretagendes fortjeneste og beskattes i overensstemmelse hermed.

2. I tilfælde, hvor en kontraherende stat til fortjenesten for et foretagende i denne stat medregner – og i overensstemmelse hermed beskatter – fortjeneste, som et foretagende i den anden kontraherende stat er blevet beskattet af i denne anden stat, og den således medregnede fortjeneste af den førstnævnte stat anses for at være fortjeneste, som ville være tilfaldet foretagendet i den førstnævnte stat, hvis vilkårene mellem de to foretagender havde været de samme, som ville være blevet aftalt mellem uafhængige foretagender, skal denne anden stat foretage en dertil svarende regulering af det skattebeløb, som er beregnet der af fortjenesten, såfremt denne anden stat finder reguleringen berettiget. Ved reguleringen skal der tages hensyn til de øvrige bestemmelser i denne overenskomst, og de kontraherende staters kompetente myndigheder skal, om nødvendigt, rådføre sig med hinanden.

Article 9: Associated Enterprises

1. Where a) an enterprise of a Contracting State participates directly or indirectly in the management, control, or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control, or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State,

   and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of these enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State – and taxes accordingly – profits on which an enterprise of the other Contracting State has been charged to tax in that other State, and the profits so included are profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits if that other State considers the adjustment justified. In determining such an adjustment, due regard shall be had to the other provisions of this Agreement, and the competent authorities of the Contracting States shall, if necessary, consult each other.

Artikel 10 Udbytte

1. Udbytte, som udbetales af et selskab, der er hjemmehørende i en kontraherende stat, til en person, der er hjemmehørende i den anden kontraherende stat, kan beskattes i denne anden stat.

2. Sådant udbytte kan imidlertid også beskattes i den kontraherende stat, hvori det selskab, der betaler udbyttet, er hjemmehørende, og i henhold til lovgivningen i denne stat, men den skat der pålignes må, såfremt modtageren er udbyttets retmæssige ejer, ikke overstige:

   a) 15 procent af bruttobeløbet af udbyttet, hvis modtageren af udbyttet er et selskab (bortset fra et interessentskab og et kommanditselskab), der direkte ejer mindst 25 procent af kapitalen i det selskab, som udbetaler udbyttet;

   b) 20 procent af bruttobeløbet af udbyttet i alle andre tilfælde.

De kontraherende staters kompetente myndigheder skal ved gensidig aftale fastsætte de nærmere regler for gennemførelsen af disse begrænsninger.

Article 10 Dividends

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying the dividends is a resident, and according to the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed:

   a) 15 per cent of the gross amount of the dividends if the recipient is a company (other than a partnership) which holds directly at least 25 per cent of the capital of the company paying the dividends;

   b) 20 per cent of the gross amount of the dividends in all other cases.

The competent authorities of the Contracting States shall by mutual agreement settle the mode of application of these limitations.

3. Udtrykket ”udbytte” betyder i denne artikel indkomst af aktier, ”jouissance” aktier eller ”jouissance” rettigheder, stifteranparter eller andre rettigheder, der ikke er gældsfordringer, og som giver ret til andel i fortjeneste, såvel som indkomst af andre selskabsrettigheder, der er undergivet samme skattemæssige behandling som indkomst af aktier i henhold til lovgivningen i den stat, i hvilken det selskab, der foretager udlodningen, er hjemmehørende, samt indkomst oppebåret fra en investeringsfond eller fra investerede midler under forvaltning (”investment trust”).

4. Fortjeneste indvundet af et selskab i en kontraherende stat, der driver erhvervsvirksomhed i den anden kontraherende stat gennem et der beliggende fast driftssted kan, efter at være beskattet i overensstemmelse med artikel 7, beskattes af det resterende beløb i den kontraherende stat, i hvilken det faste driftssted er beliggende; den således pålignede skat må ikke overstige 50 procent af den procentsats, der er fastsat i stykke 2, a) i denne artikel.

5. Bestemmelserne i stykke 1 og 2 skal ikke finde anvendelse, såfremt udbyttets retmæssige ejer, der er hjemmehørende i en kontraherende stat, i den anden kontraherende stat, i hvilken det selskab, der udbetaler udbyttet, er hjemmehørende, driver erhvervsvirksomhed gennem et der beliggende fast driftssted eller for så vidt angår en person, der er hjemmehørende i Tyrkiet, udøver frit erhverv i Danmark fra et der beliggende fast sted, og den aktiebesiddelse, som ligger til grund for udlodningen af udbyttet, har direkte forbindelse med et sådant fast driftssted eller fast sted. I så fald skal bestemmelserne henholdsvis i artikel 7 eller i artikel 14 finde anvendelse.

6. I tilfælde, hvor et selskab, der er hjemmehørende i en kontraherende stat, oppebærer fortjeneste eller indkomst fra den anden kontraherende stat, må denne anden stat ikke påligne nogen skat på udbytte, som udbetales af selskabet, medmindre udbyttet udbetales til en person, der er hjemmehørende i denne anden stat, eller den aktiebesiddelse, som ligger til grund for udlodningen af udbyttet, har direkte forbindelse med et fast driftssted eller et fast sted, der er beliggende i denne anden stat, eller undergive selskabets ikke-udloddede fortjeneste nogen skat på ikke-udloddet fortjeneste, selv om det udbetalte udbytte eller den ikke-udloddede fortjeneste helt eller delvis består af fortjeneste eller indkomst hidrørende fra denne anden stat. Uanset bestemmelserne i dette stykke kan en stat pålægge skat i overensstemmelse med stykke 4 i denne artikel.

3. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident, and income derived from an investment fund and investment trust.

4. Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may, after having been taxed under Article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and the taxes so charged shall not exceed 50 per cent of the percentage provided for in subparagraph a) of paragraph 2 of this Article.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, or in the case of a resident of Turkey, performs in Denmark independent personal services from a fixed base situated in Denmark, and the holding in respect of which the dividends 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.

6. Where a company which is a resident of a Contracting State derives profits or income from the other Contracting State, that other State may not impose any tax on the dividends paid by the company, except insofar as such dividends are paid to a resident of that other State or insofar as the holding in respect of which the dividends are paid is effectively connected with a permanent establishment or a fixed base situated in that other State, nor subject the company’s undistributed profits to a tax on undistributed profits, even if the dividends paid or the undistributed profits consist wholly or partly of profits or income arising in such other State. Notwithstanding the provisions of this paragraph, a State may impose tax in accordance with paragraph 4 of this Article.

Article 11 Interest

1. Interest 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 interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State, but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 15 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in: a) Denmark and paid to the Government of Turkey or to the Central Bank of Turkey (Turkiye Cumhuriyet Merkez Bankasi) shall be exempt from Danish tax; b) Turkey and paid to the Government of Denmark or to the National Bank of Denmark (Danmarks Nationalbank) shall be exempted from Turkish tax.

4. The term “interest” as used in this Article means income from debt-claims 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 securities, bonds or debentures.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State, carries on business in the other Contracting State in which the interest arises, through a permanent establishment situated therein, or, in the case of a resident of Turkey, performs independent personal services from a fixed base situated in Denmark, and the debt-claim in respect of which the interest is 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.

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 arise, and according to the laws of that State, but if the recipient is the beneficial owner of the royalties the tax so charged shall not exceed 10 per cent of the gross amount of the royalties.

3. The term “royalties” as used in this Article means payments of any kind received as consideration for the use of, the right to use, or the sale of any copyright of literary, artistic, or scientific work, including cinematograph films and recordings for radio and television, any patent, trademark, design or model, plan, secret formula or process, or for information concerning industrial, commercial or scientific experience, or for the use of, or the right to use, industrial, commercial, or scientific equipment.

4. The provisions of paragraphs 1 and 2 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, in the case of a resident of Turkey, performs independent personal services from a fixed base situated in Denmark, 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.

5. Royalties shall be deemed to arise in a Contracting State when the payer is that 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 a permanent establishment or a fixed base in a Contracting State in connection with which the right or property giving rise to the royalties is effectively connected, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the Contracting State in which the permanent establishment or fixed base is situated.

6. 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 paid, having regard to the use, right or information for which they are paid, exceeds for whatever reason the amount which would have been agreed upon by the payer and the beneficial owner in the absence

Article 13 Capital Gains

1. Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in Article 6 and situated in the other Contracting State may be taxed in that other State.

2. Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such a fixed base, may be taxed in that other State.

3. Gains derived by an enterprise of a Contracting State from the alienation of ships, aircraft, or road vehicles operated in international traffic, or movable property pertaining to the operation of such ships, aircraft, or road vehicles, shall be taxable only in that State. With respect to gains derived by the Danish, Swedish, and Norwegian air transport consortium Scandinavian Airlines System (SAS), the provisions of this paragraph shall apply only to such proportion of the gains as corresponds to the participation held in that consortium by Det Danske Luftfartsselskab (DDL), the Danish partner of Scandinavian Airlines System (SAS).

4. Gains from the alienation of any property other than that referred to in paragraphs 1, 2, and 3 shall be taxable only in the Contracting State of which the alienator is a resident. However, capital gains derived from the other Contracting State shall be taxable in that other State.

Article 14 Independent Personal Services

1. Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if: a) he has a fixed base regularly available to him in that other State for the purpose of performing those services or activities; or b) he is present in that other State for the purpose of performing those services or activities for a period or periods amounting in the aggregate to 183 days or more in any continuous period of 12 months. In such circumstances, only so much of the income as is attributable to that fixed base or is derived from the services or activities performed during his presence in that other State, as the case may be, may be taxed in that other State.

2. Income derived by an enterprise of a Contracting State in respect of professional services, including supervisory activities or other activities of a similar character, shall be taxable only in that State. However, such income may also be taxed in the other Contracting State if such services or activities are performed in that other State and if: a) the enterprise has a permanent establishment in that other State through which the services or activities are performed; or b) the period or periods during which the services are performed exceed in the aggregate 183 days in any continuous period of 12 months. In such circumstances, only so much of the income as is attributable to that permanent establishment or to the services or activities performed in that other State, as the case may be, may be taxed in that other State. In either case, the enterprise may elect to be taxed in that other State in respect of such income in accordance with the provisions of Article 7 of this Agreement as if the income were attributable to a permanent establishment of the enterprise situated in that other State.

Article 15 Dependent Personal Services

1. Subject to the provisions of Articles 16, 18, 19, and 20, salaries, wages, and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2. Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if: a) the recipient is present in the other State for a period or periods not exceeding in the aggregate 183 days in the calendar year concerned, and b) the remuneration is paid by, or on behalf of, an employer who is not a resident of the other State, and c) the remuneration is not borne by a permanent establishment or a fixed base which the employer has in the other State.

3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised aboard a ship, aircraft, or road transport vehicle operated in international traffic by an enterprise of a Contracting State may be taxed in that State.

4. Where a resident of Denmark derives remuneration in respect of an employment exercised aboard an aircraft operated in international traffic by the air transport consortium Scandinavian Airlines System (SAS), such remuneration shall be taxable only in Denmark.

5. Notwithstanding the provisions of paragraphs 1 to 4 of this Article, salaries, wages, and other similar remuneration received by a citizen of a Contracting State for work performed in the other Contracting State through a permanent establishment belonging to an air transport company or air transport consortium in the first-mentioned Contracting State may only be taxed in the State in which he is a citizen.

Article 16

Director’s Fees

Director’s fees and similar payments received by a person who is a resident of a contracting state, in his capacity as a member of the board of directors of a company resident in the other contracting state, may be taxed in this other state.

Article 17

Artistes and Athletes

1. Income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio, or television artist, or as an athlete, from personal activities exercised in the other Contracting State, may be taxed in that other State.

2. If income from personal activities exercised by an entertainer or athlete accrues not to the entertainer or athlete themselves but to another person, despite the provisions of Articles 7, 14, and 15, that income may be taxed in the Contracting State where the activities were performed.

3. Paragraphs 1 and 2 do not apply to income derived from activities performed in a Contracting State by artistes or athletes if the visit to that State is substantially funded by public funds of the other Contracting State, a political subdivision, or a local authority thereof.

Article 18

Pensions, Annuities, and Similar Payments

1. Pensions and similar remuneration paid in consideration of past employment, as well as pensions, remuneration, disbursements, and similar payments under Social Security legislation and annuities arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in the first-mentioned Contracting State. However, the tax imposed by that State shall be reduced by fifty percent of such tax.

   • Where payments consist solely of pensions, remuneration, disbursements, and similar payments under Social Security legislation, they shall be exempt from tax in the first-mentioned State.

2. An “annuity” refers to a fixed sum paid periodically at specified intervals during life or for a definite or ascertainable period, under an obligation to make payments in return for adequate and full consideration in money or money’s worth.

Article 19

Government Service

1. Remuneration, including pensions, paid by a Contracting State, political subdivision, or local authority thereof, or from funds created by such entities, to an individual for services rendered in discharge of governmental functions shall be taxable only in that State.

2. Articles 15, 16, and 18 apply to remuneration and pensions for services rendered in connection with a business conducted by a Contracting State, political subdivision, or local authority thereof.

Article 20

Teachers and Students

1. Payments received by a student or business apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State.

Article 21

Other Income

1. Income items arising from a Contracting State that are not specifically addressed in the preceding Articles of this Agreement may be taxed in that State.

2. Income items arising outside the two Contracting States shall be taxable only in the Contracting State where the recipient of that income is a resident.

Article 22

Methods for Elimination of Double Taxation

Double taxation shall be avoided as follows:

1. In Denmark: a) Subject to the provisions of subparagraph c), when a resident of Denmark earns income which, according to the provisions of this Agreement, may be taxed in Turkey, Denmark shall allow as a deduction from the tax on that resident’s income an amount equal to the income tax paid in Turkey. b) However, this deduction shall not exceed the portion of the income tax attributable to the income that may be taxed in Turkey, calculated before the deduction is applied. c) When a resident of Denmark earns income which, according to the provisions of this Agreement, is taxable only in Turkey, Denmark may include this income in the tax base but shall allow as a deduction from the income tax the portion attributable to the income derived from Turkey. d) For the purposes of subparagraph a), “the income tax paid in Turkey” shall include any amount of Turkish tax that would have been payable under Turkish tax law, except for any reduction or exemption granted under provisions related to special incentive measures aimed at promoting economic development in Turkey. Notwithstanding the above, the tax on income paid in Turkey shall be calculated as follows: i) For dividends as referred to in subparagraph a) of paragraph 2 of Article 10, at a rate of 15 per cent; ii) For dividends as referred to in subparagraph b) of paragraph 2 of Article 10, at a rate of 20 per cent; iii) For interest as referred to in paragraph 2 of Article 11, at a rate of 15 per cent; iv) For royalties as referred to in paragraph 2 of Article 12, at a rate of 10 per cent.

Article 23

Non-discrimination

1. Nationals of one Contracting State shall not face taxation or related requirements in the other Contracting State that are more burdensome or different than those faced by nationals of the latter State in the same circumstances.

2. Except for the provisions of Article 10, paragraph 4, taxation on a permanent establishment that an enterprise of one Contracting State has in the other Contracting State shall not be less favorably levied than the taxation imposed on enterprises of the latter State engaged in the same activities. This does not require a Contracting State to grant personal allowances to residents of the other Contracting State.

Article 24

Mutual Agreement Procedure

1. If a person believes that the actions of one or both Contracting States result in or will result in taxation that does not comply with the provisions of this Agreement, they may present their case to the competent authority of the Contracting State in which they are a resident, or if their case falls under Article 23, to the competent authorities of the Contracting States of which they are a national. Such presentation must occur within three years from the first notification of the action resulting in the alleged non-compliant taxation.

2. The competent authority shall attempt to resolve the matter if it deems the objection justified and cannot itself reach a satisfactory resolution.

Article 25

Exchange of Information

1. The competent authorities of the Contracting States shall exchange information necessary for implementing this Agreement or their domestic tax laws concerning taxes covered by the Agreement, provided such exchange does not contravene the Agreement. This exchange is not restricted by Article 1. Information received by a Contracting State shall be treated as confidential in the same manner as domestically obtained information and shall be disclosed only to persons or authorities involved in tax assessment, collection, enforcement, prosecution, or appeal determination related to the taxes covered by the Agreement. Such recipients may use the information solely for these purposes and may disclose it in public court proceedings or judicial decisions.