With reference to Article 12, paragraph 2, of the Convention Sample Clauses

With reference to Article 12, paragraph 2, of the Convention. It is agreed that if in any future double taxation Convention with any other State, New Zealand should limit its taxation at source on royalties, which are paid for the use of, or the right to use, industrial, commercial or scientific equipment, to a rate below that provided for in Article 12, paragraph 2, of the Convention then such lower rate (but not in any event a rate below 5 per cent) shall apply to such royalties arising in Chile and beneficially owned by a resident of New Zealand and such royalties arising in New Zealand and beneficially owned by a resident of Chile under the same conditions as if such lower rate had been specified in Article 12, paragraph 2, of the Convention. New Zealand shall without undue delay inform Chile of any such lower rate by way of a diplomatic note. The lower rate will be applied from the date established in the Convention with the other State and communicated in the diplomatic note. Any revision of the rate in Article 12, paragraph 2, of the Convention under this Article shall not be regarded as a formal amendment to the Convention.
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