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 beneficial owner of the dividends is a resident of the other Contracting State, the tax so charged shall not exceed
a) 5 percent of the gross amount of the dividends if the beneficial owner is a company which owns at least 10 percent of the voting stock of the company paying the dividends;
b) 15 percent of the gross amount of the dividends in all other cases.
This paragraph shall not affect the taxation of the company in respect of the profits out of which the dividends are paid.
3. The term "dividends" as used in this Convention means income from 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.
4. The provisions of paragraph 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 performs in that other State independent personal services from a fixed base situated therein, and the dividends are attributable to such permanent establishment or fixed base. In such case the provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services), as the case may be, shall apply.
5. A Contracting State may not impose any tax on dividends paid by a company which is not a resident of that State, except insofar as:
a) the dividends are paid to a resident of that State;
b) the dividends are attributable to a permanent establishment or a fixed base situated in that State; or
c) except with respect to companies described in paragraph 6 of Article 16 (Limitation on Benefits), the dividends are paid out of profits attributable to one or more permanent establishments of such company in that State, provided that the gross income of the company attributable to such permanent establishment constituted at least 50 percent of the company's gross income from all sources.
6. The income of an Aruban company qualifying for fiscal incentives under the Hotel and Industries, Real Estate Development, Free Zone or Exporting Industries ordinances (as in effect on the date of signature of this Convention) or such fiscal incentives as the competent authorities may agree pursuant to Article 25 (Mutual Agreement Procedure) shall not be subject to the United States accumulated earnings tax. In addition, a company which is a resident of Aruba shall be exempt from United States accumulated earnings tax if individuals (other than United States citizens) who are residents of Aruba control directly or indirectly throughout the last half of the taxable year more than 50 percent of the entire voting power and value of the company. For purposes of determining the applicability of the United States accumulated earnings tax with respect to a company which is a resident of Aruba and described in paragraph 5 of Article 16 (Limitation on Benefits) (other than a company described in subparagraph (a)(i) of such paragraph), a United States person eligible to own shares of such company under subparagraph (a)(ii)(D) of such paragraph shall not be treated as a United States person.
