Article 29. ENTRY r:. TO FORCE

Paragraph (1) provicies that the Convention is subject to ratification and provides for the exchange of instruments of ratification. The Con­ vention wil enter into force 30 days after the date of exchange of such instruments of ratification. The Convention shall first have effect as respects the rate of withholding of tax, to amounts paid on or after January 1 of the year following the date on which the Convention enters into force and, as respects other taxes, to taxable years beginning on

or after January 1 of the year following the date on which the Conven­ tion enters into force. However, paragraph (2) provides an exception· to those effective dates. Under paragraph (2)(b)(iii) of Article 13

(Royalties), the tax imposed by the Philippines on royalties derived by residents of the United States is limited to an amount that doe.s not exceed the lowest rate of Philippine tax that may be imposed on royalties of the same kind paid under similar circumstances to a resident of a third State. That provision wil not have effect before January 1,

1979, with respect to payments received as consideration for the use of, or the right to use, a copyright of cinematographic films or films or tapes used for radio or television broadcasting.