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 10 percent of the gross amount of the interest.
     3. Notwithstanding the provisions of paragraph 2, interest arising from a Contracting State and paid to beneficial owner of the interest who is a resident of the other State is only taxable in the other State if the interest:
a) was paid on the basis of obligations or a debt claim, or any other such claim by the authorities of the Contracting State or by a political subject or a local public corporation; or
b) was paid on the basis of loans or other such claims made by the authorities of the other Contracting State, a political subject thereof, a local public corporation thereof, the Central Bank of the other State or by a corporation (including financial institutions) that are governed by the State or by a political subdivision or a local authority thereof.
     4. The term "interest" as used in this article means income from debt claims of every kind, whether or not secured by mortgage, with the exception of income from bonds that share in a portion of the debtor's profits, and in particular income from government securities and income from bonds or debentures, including premiums and prizes attached to such securities, 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, 2 and 3 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 performs in that other State independent personal services from a fixed base situated therein, and the debt claim in respect to 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.
     6. Interest 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 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 indebtedness on which the interest is paid was incurred, and such interest is borne by such permanent establishment or fixed base, then such interest shall be deemed 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 that 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 latter amount. In such cases, the excess part of the payments shall remain taxable according to the laws of each Contracting State, having given due regard to the other provisions of this Convention.