1. Taxation on Business ProfitsWhere an enterprise of one of the two countries has in the other country a permanent establishment (such as a branch) through which the enterprise carries on business, only the profits attributable to the permanent establishment may be taxed in that other country.
2. Taxation on Investment IncomeTaxation on investment income (dividends, interest and royalties) in the source country will be subjected to the maximum rates or exempted as follows:
|Dividends||5% (holding for 365 days at least 25% of: |
where paid by a company of Japan, voting power;
where paid by a company of Serbia, capital.)
|Interest||Exempted (received by the Governments, etc.)|