Exclusion of payments as interest or royalties
Article 4
1
The source State shall not be obliged to ensure the benefits of this Directive in the following cases:
a
payments which are treated as a distribution of profits or as a repayment of capital under the law of the source State;
b
payments from debt-claims which carry a right to participate in the debtor's profits;
c
payments from debt-claims which entitle the creditor to exchange his right to interest for a right to participate in the debtor's profits;
d
payments from debt-claims which contain no provision for repayment of the principal amount or where the repayment is due more than 50 years after the date of issue.
2
Where, by reason of a special relationship between the payer and the beneficial owner of interest or royalties, or between one of them and some other person, the amount of the interest or royalties exceeds the amount which would have been agreed by the payer and the beneficial owner in the absence of such a relationship, the provisions of this Directive shall apply only to the latter amount, if any.