ARTICLE 12 Royalties 　　1. Royalties derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. 　　2. However, notwithstanding the provisions of paragraph 1, royalties of the kind referred to in subparagraphs (b) and (c) of paragraph 3 may be taxed in the Contracting State in which they arise and according to the laws of that State, but if the beneficial owner of the royalties is a resident of the other State the tax so charged shall not exceed 5 percent of the gross amount of the royalties. 　　3. The term "royalties" as used in this Convention means payments of any kind received as a consideration 　　a) for the use of, or the right to use, any copyright of literary, artistic, or scientific work including cinematographic films and films or tapes for radio or television broadcasting; 　　b) for the use of, or the right to use, any patent, trademark, design or model, plan, secret formula or process, or other like right or property; 　　c) for information concerning industrial, commercial, or scientific experience. 　　The term "royalties" also includes gains derived from the alienation of any such right or property which are contingent on the productivity, use, or disposition thereof. 　　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 or carried on business in the other Contracting State through a permanent establishment situated therein, or performs or performed in that other State independent personal services from a fixed base situated therein, 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 (Business Profits) or Article 14 (Independent Personal Services), 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 or a political subdivision, statutory body, local authority, or resident of that State. Where, however, the right or property for which the royalties are paid is used within a Contracting State, then such royalties shall be deemed to arise in the State in which the right or property is used. 　　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, having regard to the use, right or information for which they are paid, exceeds the amount which 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 last-mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of the Convention. ARTICLE 13 Gains 　　1. Gains derived by a resident of a Contracting State from the alienation or disposition of immovable (real) property situated in the other Contracting State may be taxed in that other State. 　　2. For the purposes of this Article, the term "immovable (real) property situated in the other Contracting State", when the United States is that other Contracting State, includes a United States real property interest and immovable (real) property referred to in Article 6 (Income from Immovable (Real) Property) which is situated in the United States. The term "immovable (real) property situated in the other Contracting State", when Finland is that other State, shall have the meaning which it has under paragraph 2 of Article 6 (Income from Immovable (Real) Property), and includes shares or other corporate rights referred to in paragraph 4 of that Article. 　　3. Gains from the alienation of movable (personal) property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has or had in the other Contracting State or of movable (personal) property pertaining to a fixed base which is or was 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 fixed base, may be taxed in that other State. 　　4. Gains derived by an enterprise of a Contracting State from the alienation of ships, aircraft, or containers operated in international traffic shall be taxable only in that State. 　　5. Gains described in Article 12 (Royalties) shall be taxable only in accordance with the provisions　of Article 12. 　　6. Gains from the alienation of any property other than that referred to in the preceding paragraphs of this Article, shall be taxable only in the Contracting State of which the alienator is a resident. ARTICLE 14 Independent Personal Services 　　Income derived by an individual who is a resident of a Contracting State from the performance of personal services in an independent capacity shall be taxable only in that State. However, such income may also be taxed in the other Contracting State to the extent that such services are or were performed in that other State and the income is attributable to a fixed base regularly available to the individual in that other State for the purpose of performing his activities. ARTICLE 15 Dependent Personal Services 　　1. Subject to the provisions of Articles 18 (Pensions, Annuities, Alimony, and Child Support) and 19 (Government Service), 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 within any twelve-month period; 　　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 or a trade or business which the employer has in the other State. 　　3. Notwithstanding the preceding provisions of this Article, remuneration derived in respect of an employment exercised as a member of the regular complement of a ship or aircraft operated in international traffic by a resident of a Contracting State, may be taxed in that State. ARTICLE 16 Limitation on Benefits 　　1. A person that is a resident of a Contracting State and derives income from the other Contracting State shall be entitled under this Convention to relief from taxation in that other State only if such person is: 　　a) an individual; 　　b) a Contracting State or a political subdivision or local authority thereof; 　　c) engaged in an active conduct of a trade or business in the first-mentioned Contracting State (other than the business of making or managing investments, unless these activities are banking or insurance activities carried on by a bank or insurance company), and the income derived from the other Contracting State is derived in connection with, or is incidental to, that trade or business; 　　d) a person 　　(i) more than 50 percent of the beneficial interest in such person (or in the case of a company, more than 50 percent of the number of shares of each class of the company's shares) is owned, directly or indirectly, by persons entitled to benefits of this Convention under subparagraphs (a), (b), (e) or (f) of this paragraph or who are citizens of the United States; and 　　(ii) not more than 50 percent of the gross income of such person is used,directly or indirectly, to meet liabilities (including liabilities for interest or royalties) to persons who are not entitled to benefits of this Convention under subparagraph (a), (b), (e) or (f) of this paragraph and are not citizens of the United States; 　　e) a company in whose principal class of shares there is substantial and regular trading on a recognized stock exchange; or 　　f) an entity which is a not-for-profit organization (including pension funds and private foundations), and which, by virtue of that status, is generally exempt from income taxation in the Contracting State of which it is a resident, provided that more than half of the beneficiaries, members or participants, if any, in such organization are persons that are entitled, under this Article, to the benefits of the Convention. 　　2. A person that is not entitled to the benefits of the Convention pursuant to the provisions of paragraph 1 may, nevertheless, be granted the benefits of the Convention if the competent authority of the Contracting State in which the income in question arises so determines. 　　3. For the purposes of subparagraph (e) of paragraph 1, the term "a recognized stock exchange" means: 　　a) the NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the Securities and Exchange Commission as a national securities exchange for the purposes of the Securities Exchange Act of 1934; 　　b) the Helsinki Stock Exchange; and 　　c) any other stock exchange agreed upon by the competent authorities of the Contracting States. ARTICLE 17 Artistes and Sportsmen 　　1. Notwithstanding the provisions of Articles 14 (Independent Personal Services) and 15 (Dependent Personal Services), income derived by a resident of a Contracting State as an entertainer, such as a theatre, motion picture, radio or television artiste, or a musician, or a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State, except where the amount of the gross receipts derived by such entertainer or sportsman, including expenses reimbursed to him or borne on his behalf, from such activities does not exceed twenty thousand United States dollars ($20,000) or its equivalent in Finnish currency for the calendar year concerned. 　　2. Where income in respect of personal activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman himself, but to another person, that income of that other person may, notwithstanding the provisions of Articles 7 (Business Profits) and 14 (Independent Personal Services), be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised, unless it is established that neither the entertainer or sportsman nor persons related thereto participate directly or indirectly in the profits of that other person in any manner, including the accrual or receipt of deferred remuneration, bonuses, fees, dividends, partnership income, or income or other distributions. 　　　　　　　　　　　　ARTICLE 18 　　　　　Pensions, Annuities, Alimony, and Child Support 　　1. Subject to the provisions of paragraph 2 of Article 19 (Government Service) 　　a) pensions and other similar remuneration derived and beneficially owned by a resident of a Contracting State in consideration of past employment shall be taxable only in that State; and 　　b) pensions and other payments under the social security legislation of a Contracting State and, where that Contracting State is the United States, other public pensions, paid to a resident of the other Contracting State or a citizen of the United States shall be taxable only in the first-mentioned State. 　　2. Annuities derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. The term "annuities" as used in this paragraph means stated sums paid periodically at stated times during life or a specified or ascertainable number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered or to be rendered). 　　3. Alimony paid to a resident of a Contracting State shall be taxable only in that State. The term "alimony" as used in this paragraph means periodic payments made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, which payments are taxable to the recipient under the laws of the State of which he is a resident. 　　4. Periodic payments for the support of a minor child made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, paid by a resident of a Contracting State to a resident of the other Contracting State, shall be taxable only in the first-mentioned State. ARTICLE 19 Government Service 　　1. a) Remuneration, other than a pension, paid by a Contracting State or a political subdivision, statutory body or local authority thereof to an individual in respect of services rendered to that State, subdivision, body or authority shall be taxable only in that State. 　　b) However, such remuneration shall be taxable only in the Contracting State of which the individual is a resident if the services are rendered in that State and the individual: 　　(i) is a national of that State; or 　　(ii) did not become a resident of that State solely for the purpose of rendering the services. 　　2. a) Any pension paid by, or out of funds created by, a Contracting State or a political subdivision, statutory body or local authority thereof to an individual in respect of services rendered to that State, subdivision, body or authority shall be taxable only in that State. 　　b) However, such pension shall be taxable only in the Contracting State of which the individual is a resident if he is a national of that State. 　　3. The provisions of Articles 14 (Independent Personal Services), 15 (Dependent Personal Services) and 18 (Pensions, Annuities, Alimony, and Child Support) shall apply to remuneration and pensions in respect of services rendered in connection with a business carried on by a Contracting State or a political subdivision, statutory body or local authority thereof. ARTICLE 20 Students and Trainees 　　Payments received for the purpose of maintenance, education, or training by a student, apprentice, or business trainee who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State for the purpose of his full-time education or training shall not be taxed in that State, provided that such payments arise outside that State. ARTICLE 21 Other Income 　　1. Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 　　2. The provisions of paragraph 1 shall not apply to income, other than income from immovable (real) property as defined in paragraph 2 of Article 6 (Income from Immovable (Real) Property), if the beneficial owner of such income, being a resident of a Contracting State, carries or carried on business in the other Contracting State through a permanent establishment situated therein, or performs or performed in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with 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. ARTICLE 22 Capital 　　1. Capital represented by immovable (real) property referred to in paragraph 2 of Article 6 (Income from Immovable (Real) Property), owned by a resident of a Contracting State and situated in the other Contracting State, may be taxed in that other State. 　　2. Capital represented by shares or other corporate rights referred to in paragraph 4 of Article 6 (Income from Immovable (Real) Property) and owned by a resident of a Contracting State may be taxed in the Contracting State in which the immovable (real) property held by the company is situated. 　　3. Subject to the provisions of paragraph 4, capital represented by assets, other than property referred to in paragraphs 1 and 2, which are effectively connected with a permanent establishment or fixed base of a resident of a Contracting State may be taxed in the State in which the permanent establishment or fixed base is situated. 　　4. Ships and aircraft of a resident of a Contracting State, and assets, other than property referred to in paragraphs 1 and 2, pertaining to the operation of such ships or aircraft shall be exempt from tax on capital by the other Contracting State. 5 All other elements of capital of a resident of 　　a) Finland not dealt with in this Article shall be exempt from tax on capital by the United States; 　　b) the United States not dealt with in this Article shall be exempt from tax on capital by Finland. ARTICLE 23 Elimination of Double Taxation 　　1. In Finland double taxation shall be eliminated as follows: 　　a) Where a resident of Finland derives income or owns capital which, in accordance with the provisions of this Convention, may be taxed in the United States (other than solely by virtue of citizenship), Finland shall, subject to the provisions of sub-paragraph (b), allow: 　　(i) as a deduction from the tax on income of that person, an amount equal to the tax on income paid in the United States; 　　(ii) as a deduction from the tax on capital of that person, an amount equal to the tax on capital paid in the United States. Such deduction in either case shall not, however, exceed that part of the tax on income or on capital, as computed before the deduction is given, which is attributable, as the case may be, to the income or the capital which may be taxed in the United States. 　　b) Dividends paid by a company which is a resident of the United States to a company which is a resident of Finland and owns directly at least 10 percent of the voting stock of the company paying the dividends shall be exempt from Finnish tax. 　　 c) Notwithstanding any other provisions of the Convention, an individual who is a resident of the United States and under Finnish taxation law with respect to the Finnish taxes referred to in Article 2 (Taxes Covered) also is regarded as resident in Finland may he taxed in Finland. However, Finland shall allow any United States tax paid on the income or on the capital as a deduction from Finnish tax in accordance with the provisions of subparagraph (a).The provisions of this subparagraph shall apply only to nationals of Finland. 　　d) Where in accordance with any provisions of the Convention, income derived or capital owned by a resident of Finland is exempt from tax in Finland, Finland may nevertheless, in calculating the amount of tax on the remaining income or capital of such resident, take into account the exempted income or capital. 　　2. In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as credit against the United States tax on income 　　a) the income tax paid to Finland by or on behalf of such resident or citizen; and 　　b) in the case of a United States company owning at least 10 percent of the voting stock of a company which is a resident of Finland and from which the United States company receives dividends, the income tax paid to Finland by or on behalf of the distributing company with respect to the profits out of which the dividends are paid. 　　For the purposes of this paragraph, the taxes referred to in subparagraph (a) of paragraph 1 and paragraph 2 of Article 2 (Taxes Covered) shall be considered income taxes. 　　3. For the purposes of computing United States tax, where a citizen of the United States is a resident of Finland, the United States shall allow as a credit against United States tax the income tax paid to Finland after the credit referred to in paragraph 1. The credit so allowed against United States tax shall not reduce that portion of the United States tax that is creditable against Finnish tax in accordance with paragraph 1. For the purposes of this paragraph, income beneficially owned by a resident of Finland who is a citizen of the United States shall be deemed to arise in Finland to the extent necessary to give effect to the provisions of this paragraph. 　　4. For the purposes of allowing relief from double taxation pursuant to this Article and subject to such source rules in the domestic laws of the Contracting States as apply for the purpose of limiting the foreign tax credit, income shall, except as otherwise provided in paragraph 3, be deemed to arise exclusively as follows: 　　a) income derived by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with the Convention (other than solely by reason of citizenship in accordance with paragraph 3 of Article 1 (Personal Scope)) shall be deemed to arise in that other State; 　　b) income derived by a resident of a Contracting State which may not be taxed in the other Contracting State in accordance with the Convention shall be deemed to arise in the firstmentioned State.