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CONVENTION
Between
The Government of The
Hashemite Kingdom of Jordan,
And
The Council Of Ministers
Of Serbia and Montenegro,
For
the avoidance of double taxation respect
to taxes on income
and on capital
________________________________________________________
The Government of The
Hashemite Kingdom of Jordan,
And
The Council Of Ministers
Of Serbia and Montenegro,
desiring to conclude a
Convention for the avoidance of double
taxation with respect to taxes on income
and on capital with the view to
establishing stable condition for
comprehensive development of economic
and other cooperation and investment
between the two countries,
Have agreed as follows :
Article 1
PERSONAL SCOPE
This Convention shall
apply to persons who are residents of
one or both of the Contracting States .
Article 2
TAXES COVERED
1.
This Convention shall apply to taxes on
income and on capital imposed on
behalf of a Contracting State or of its
political subdivisions or local
authorities, irrespective of the manner
in which they are levied .
2. There shall be
regarded as taxes on income and on
capital all taxes imposed on total
incomeand on total capital, or on
elements of incomeand on capital,
including taxes on gains from the
alienation of movable or immovable
property, taxes on total amounts of
wages or salaries paid by enterprises,
as well as taxes on capital
appreciations .
3. The existing
taxes to which the Convention shall
apply are in particular :
-
in Jordan :
1) the income tax ;
2) the distribution tax;
3) the social service tax;
(
hereinafter referred to as " Jordanian
tax " );
-
in Serbia and Montenegro,
1) the tax on profit;
2)
the tax on income;
3)
the tax on capital;
4)
the tax on revenue from
international transport;
( hereinafter
referred to as " Serbian and
Montenegrin tax " ).
4. The Convention
shall apply also to any identical or
substantially similar taxes which are
imposed by either Contracting State
after the date of signature of the
Convention in addition to, or in place
of, the existing taxes . The competent
authorities of the Contracting States
shall notify each other of any
significant changes which have been
made in their respective taxation laws.
Article
3
GENERAL DEFINITIONS
1 . For the purposes of
this Convention :
1)
the terms "a Contracting State" and "the other
Contracting State" mean Jordan or Serbia
and Montenegro, as the context requires
;
2)
the term " Jordan " means the Hashemite Kingdom
of Jordan and when used in geographical
sense means the territorial waters of
Jordan, the air space thereover, as
well as the seabed and subsoil of the
territorial waters, and includes any
area extending beyond the limits of the
territorial waters of Jordan, and the
seabed and subsoil of any such area,
which has been or may hereafter be
designated, under the laws of Jordan,and
in accordance with international law as
an area over which Jordan has sovereign
rights for the purposes of exploring
and exploiting the natural resources,
whether living or non-living ;
3)
the term " Serbia and Montenegro " means The state
community of Serbia and Montenegro
and when used in geographical sense it
means the land territory Serbia and
Montenegro, its internal sea waters and
the belt of the territorial sea, the air
space therover, as well as the sea-bed,
and subsoil of the part of the high sea
outside the outer limit of the
territorial sea over which, Serbia and
Montenegro exercise its sovereign rights
for exploration and exploitation of
their natural resources in accordance
with its internal legislation and
international law;
4)
the term " national " means any individual
possessing the nationality of a
Contracting State, and any lega person,
partnership and association deriving its
status as such from the law in force in
a Contracting State ;
5)
the term " person " includes an individual, a
company and any other body of
persons ;
the term " company " means any body
corporate or any entity which is treated
as a body corporate for tax purposes ;
6)
the term “ company : means any body corporate or
any eintity which is treated as a body
corporate for tax purposes;
7)
the terms "enterprise of a Contracting State" and
"enterprise of the other
Contracting State" mean respectively an
enterprise carried on by a
resident of a Contracting State and an
enterprise carried on by a resident of
the other Contracting State ;
8)
the term " international traffic " means any
transport by a ship or aircraft or road
vehicle operated by an enterprise which
has its place of effective management in
a Contracting State, except when the
ship or aircraft road vehicle is
operated solely between places in
the other Contracting State ;
9)
the term " competent
authority " means :
- in the case of
Jordan, the Minister of Finance or his
authorised representative .
- in the case of "
Serbia and Montenegro, and Ministry for
International Economic Relations .
2. As regards the
application of the Convention by a
Contracting State any term not defined
therein shall, , have the meaning which
it has under the law of that State
concerning the taxes to which this
Convention applies . Any meaning under
the applicable tax laws of that State,
will be prevailing over a meaning given
to the term under the laws of that State
.
Article 4
RESIDENT
1.
For the purposes of this
Convention, the term " resident of the
Contracting State " means any person
who, under the laws of that State, is
liable to tax therein by reason of his
domicile, residence, place of
incorporation, place of management or
any other criterion of a similar nature
, and also includes that State and any
political subdivision or local authority
thereof But this term does not include
any person who is liable to tax in that
State in respect only of income from
sources in that State , or
capital situated therein.
2.
Where by reason of the
provisions of paragraph 1 an individual
is a resident of both Contracting
States, then his status shall be
determined as follows :
1)
he shall be deemed to be a resident of the State
in which he has a permanent home
available to him; if he has a permanent
home available to him in both States, he
shall be deemed to be a resident of the
State with which his personal and
economic relations are closer
( centre of vital interests ) ;
2)
if the State in which he has his centre of vital
interests cannot be determined, or if he
has not a permanent home available to
him in either State, he shall be deemed
to be a resident of the State in which
he has an habitual abode ;
3)
if he has an habitual abode in both States or in
neither of them, he shall be deemed to
be a resident of the State of which he
is a national;
4)
if he is a national of both States or of neither
of them, the competent authorities of
the Contracting States shall settle the
question by mutual agreement .
3.
Where by reason of the provisions of paragraph 1 a
person other than an individual is a
resident of both Contracting States,
then it shall be deemed to be a resident
of the State in which its place of
effective management is situated. If
it necessary the competent authorities
of the Contracting States shall settle
the question by mutual agreement.
Article 5
PERMANENT ESTABLISHMENT
1.
For the purpose of this Convention, the
term " permanent establishment " means a
fixed place of business through which
the business of an enterprise is wholly
or partly carried on.
2. the term "
permanent establishment " includes
especially :
1)
a place of management ;
2)
a branch ;
3)
an office ;
4)
a factory ;
5)
a workshop ; and
6)
a mine, an oil or gas
well, a quarry or any other place of
extraction of natural resources ; and
7)
a farm or plantation .
3.
The building site or
construction or installation project
constitutes a permanent establishment
only if it lasts more than six months,
commencing from the date when effective
work begins .
4.
Notwithstanding the
preceding provisions of this Article,
the term" permanent establishment "
shall be deemed not to include:
1)
the use of facilities
solely for the purpose of storage,
display or delivery of goods or
merchandise belonging to the enterprise
;
2)
the maintenance of a
stock of goods or merchandise belonging
to the enterprise solely for the purpose
of storage, display or delivery ;
3)
the maintenance of a
stock of goods or merchandise belonging
to the enterprise solely for the purpose
of processing by another enterprise;
4)
the maintenance of a
fixed place of business solely for the
purpose of purchasing goods or
merchandise, or of collecting
information, for the enterprise ;
5)
the maintenance of a
fixed place of business solely for the
purpose of carrying on, for the
enterprise, any other activity of a
preparatory or auxiliary character ;
6)
the maintenance of a
fixed place of business solely for any
combination of activities
mentioned in sub-paragraphs (1. to 5.),
provided that the overall activity of
the fixed place of business resulting
from this combination is of a
preparatory or auxiliary character .
5.
Notwithstanding the
provisions of paragraphs 1 and 2, where
a person - other than an agent of an
independent status to whom paragraph 6
applies - is acting on behalf of an
enterprise and has, and habitually
exercises, in a Contracting State an
authority to conclude contracts in the
name of the enterprise, that enterprise
shall be deemed to have a permanent
establishment in that State in respect
of any activities which that person
undertakes for the enterprise, unless
the activities of such person are
limited to those mentioned in paragraph
4 which, if exercised through a fixed
place of business, would not make this
fixed place of business a permanent
establishment under the provisions of
that paragraph .
6. An
enterprise shall not be deemed to have a
permanent establishment in a
Contracting State merely because it
carries on business in that State
through a broker, general commission
agent or any other agent of an
independent status, provided that such
persons are acting in the ordinary
course of their business . However, when
the activities of such an agent are
devoted wholly or almost wholly on
behalf of that enterprise or its
associated enterprises, he will not be
considered an agent of an independent
status within the meaning of this
paragraph .
7. The fact
that a company which is a resident of a
Contracting State controls or is
controlled by a company which is a
resident of the other Contracting State,
or which carries on business in that
other State ( whether through a
permanent establishment or otherwise ),
shall not of itself constitute either
company a permanent establishment of the
other .
Article 6
INCOME FROM IMMOVABLE
PROPERTY
1.
Income derived by a resident of a
Contracting State from immovable
property ( including income from
agriculture or forestry ) situated in
the other Contracting State may be taxed
in that other State .
2. The term "
immovable property " shall have the
meaning which it has under the law of
the Contracting State in which the
property in question is situated . The
term shall in any case include property
accessory to immovable property,
livestock and equipment used in
agriculture and forestry, rights to
which the provisions of general law
respecting landed property apply,
usufruct of immovable property and
rights to variable or fixed payments as
consideration for the working of, or the
right to work, mineral deposits,
sources and other natural resources ;
ships, aircraft and road vehicles shall
not be regarded as immovable property .
3. The provisions
of paragraph 1 shall apply to income
derived from the direct use, letting, or
use in any other form of immovable
property.
4. The provisions
of paragraphs 1 and 3 shall also apply
to the income from immovable property of
an enterprise and to income from
immovable property used for the
performance of independent personal
services .
Article 7
BUSINESS PROFITS
Y[1.
The profits of an enterprise
of a Contracting State shall be
taxable only in that State unless the
enterprise carries on business in the
other Contracting State through a
permanent establishment situated therein
. If the enterprise carries on business
as aforesaid, the profits of the
enterprise may be taxed in the other
State but only so much of them as is
attributable to that permanent
establishment .]
[1.
The profits of an enterprise
of a Contracting State shall be
taxable only in that State unless the
enterprise carries on business in the
other Contracting State through a
permanent establishment situated therein
. If the enterprise carries on business
as aforesaid, the profits of the
enterprise may be taxed in the other
State but only so much of them as is
attributable to (a) that permanent
establishment; (b) sales in that other
State of goods or a merchandise of the
same or similar kind as those sold
through that permanent establishment; or
(c) other business activities carried on
that other State of the same or similar
kind as those effected through that
permanent establishment . ]
2 Subject to the
provisions of paragraph 3, where an
enterprise of a Contracting State
carries on business in the other
Contracting State through a permanent
establishment situated therein, there
shall in each Contracting State be
attributed to that permanent
establishment the profits which it might
be expected to make if it were a
distinct and separate enterprise engaged
in the same or similar activities under
the same or similar conditions and
dealing wholly independently with the
enterprise of which it is a permanent
establishment .
3. In determining
the profits of a permanent
establishment, there shall be allowed as
deductions expenses which are incurred
for the purposes of the permanent
establishment, including executive and
general administrative expenses so
incurred, whether in the State in which
the permanent establishment is situated
or elsewhere .J[.
However, no such deduction shall be
allowed in respect of amounts, if any,
paid (otherwise than towards
reimbursement of actual expenses) by the
permanent establishment to the head
office of the enterprise or any of its
other offices, by way of royalties ,
fees or other similar payments in return
for the use of patents or other rights,
or by way of commission, for specific
services performed or for management,
or, except in the case of a banking
enterprise, by way of interest on moneys
lent to the permanent establishment .
Likewise , no account shall be taken, in
the determination of the profits of a
permanent establishment , for amount
charged, (otherwise than towards
reimbursement of actual expenses), by
the permanent establishment to the head
office of the enterprise or any of its
other offices, by way of royalties, fees
or other similar payments in return for
the use of patents or other rights, or
by way of commission for specific
services performed or for management or,
except in the case of a banking
enterprise, by way of interest or moneys
lent to the head office of the
enterprise or any of its other offices
.]
Y[4. Insofar as it
has been customary in a Contracting
State to determine the profits to be
attributed to a permanent establishment
on the basis of an apportionment of the
total profits of the enterprise to its
various parts, nothing in paragraph 2
shall preclude that Contracting State
from determining the profits to be taxed
by such an apportionment as may be
customary; the method of apportionment
adopted shall, however, be such that the
result shall be in accordance with the
principles contained in this Article ].
5. No profits
shall be attributed to a permanent
establishment by reason of the mere
purchase by that permanent establishment
of goods or merchandise for the
enterprise .
6. For the
purposes of the preceding paragraphs,
the profits to be attributed to the
permanent establishment shall be
determined by the same method year by
year unless there is good and sufficient
reason to the contrary .
7. Where profits
include items of income which are dealt
with separately in other Articles of
this Convention, then the provisions of
those Articles shall not be affected by
the provisions of this Article .
Y[Article 8]
Shipping, Inland
Waterways Transport And Airtransport
1.
Profits from the operation
of ships or aircraft in international
traffic shall be taxable only in the
Contracting State in which [the place
of effective management] of the
enterprise is situated.
[1.
Profits derived by an
enterprise of a Contracting State from
the operation of ships or aircraft in
international traffic shall be taxable
only in that State.]
[2.
Profits from the operation of boats
engaged in inland waterways transport
shall be taxable only in the
Contracting State in which the place of
effective management of the enterprise
is situated .]
[3. If the place
of effective management of a shipping
enterprise or of an inland waterways
transport enterprise is aboard a ship or
boat , then it shall be deemed to be
situated in the Contracting State in
which the home harbour of the ship or
boat is situated , or, if there is no
such home harbour , in the Contracting
State of which the operator of the ship
or boat is a resident .]
4. The provisions
of paragraph 1 shall also apply to
profits from the participation in a pool
, a joint business or an international
operating agency.
J[ Article 8]
SHIPPING AND AIR
TRANSPORT
1. Profits derived
by an enterprise of a Contracting State
from the operation by that enterprise of
ships or aircraft in international
traffic shall be taxable only in that
State.
2. For the purposes
of this Article, profits from the
operation of ships or aircraft in
international traffic shall mean profits
derived by an enterprise described in
paragraph 1 from the transportation by
sea or air respectively of passengers,
mail, livestock or goods carried on by
the owners or lessees or charterers of
ships or aircraft including-
(a) the sale of
tickets for such transportation on
behalf of other enterprises;
(b) other activity
directly connected with such
transportation; and
(c) the rental of
ships or aircraft incidental to any
activity directly connected with such
transportation.
3. Profits of an
enterprise of a Contracting State
described in paragraph 1 from the use,
maintenance, or rental of containers
(including trailers, barges, and related
equipment for the transport of
containers) used in connection with the
operation of ships or aircraft in
international traffic shall be taxable
only in that State.
4. The provisions
of paragraphs 1 and 3 shall also apply
to profits from participation in a pool,
a joint business or codesharing, or an
international operating agency.
5. For the purposes of this
Article, interest on funds connected
with the operation of ships or aircraft
in international traffic shall be
regarded as profits derived from the
operation of such ships or aircraft, and
the provisions of Article 11 (Interest)
shall not apply in relation to such
interest.
6. Gains derived by
an enterprise of a Contracting State
described in paragraph 1 from the
alienation of ships, aircraft or
containers owned and operated by the
enterprise, the income from which is
taxable only in that State, shall be
taxed only in that State.
7. Notwithstanding
the preceding provisions of this
Article, income derived by an enterprise
of a Contracting State from the
operation of ships between the ports of
the other Contracting State and the
ports of third countries may be taxed
in that other Contracting State, but the
tax imposed in that other State shall be
reduced by an amount equal to 50%
thereof.
Article 9
ASSOCIATED ENTERPRISES
1.
Where
1. an enterprise of a
Contracting State participates directly
or indirectly in the management,
control or capital of an enterprise of
the other Contracting State, or
2. the same
persons participate directly or
indirectly in the management, control or
capital of an enterprise of a
Contracting State and an enterprise of
the other Contracting State,
and in
either case conditions are made or
imposed between the two enterprises in
their commercial or financial relations
which differ from those which would be
made between independent enterprises,
then any profits which would, but for
those conditions, have accrued to one of
the enterprises, but, by reason of those
conditions, have not so accrued, may be
included in the profits of that
enterprise and taxed accordingly .
2. Where a
Contracting State includes in the
profits of an enterprise of that State -
and taxes accordingly - profits on which
an enterprise of the other Contracting
State has been charged to tax in that
other State and the profits so included
are profits which would have accrued to
the enterprise of the first-mentioned
State if the conditions made between the
two enterprises had been those which
would have been made between independent
enterprises, then that other State shall
make an appropriate adjustment to the
amount of the tax charged therein on
those profits . In determining such
adjustment, due regard shall be had to
the other provisions of this Convention
and the competent authorities of the
Contracting States shall if necessary
consult each other .
J[3. The provisions
of paragraph 2 shall not apply in the
case of fraud or willful default .]
Article 10
DIVIDENDS
1. Dividends paid
by a company which is a resident of a
Contracting State to a resident of the
other Contracting State may be taxed in
that other State .
2. However, such
dividends may also be taxed in the
Contracting State of which the company
paying the dividends is a resident and
according to the laws of that State, but
if the recipient is the beneficial owner
of the dividends the tax so charged
shall not exceed:
1) ……. per cent
of the gross amount of the dividends if
the beneficial owner is a company which
holds directly at least 25 per cent of
the capital of the company paying the
dividends;
2) …….. per cent of the gross
amount of the dividends in all other
cases.
The competent authorities
of the Contracting States shall by
mutual Agreement settle the mode of
application of these limitations.
This paragraph shall not
affect the taxation of the company in
respect of the profits out of which the
dividends are paid .
3. The term "
dividends " as used in this Article
means income from shares, or other
rights, not being debt-claims,
participating in profits, as well as
income from other corporate rights which
is subjected to the same taxation
treatment as income from shares by the
laws of the State of which the company
making the distribution is a resident .
4. The provisions
of paragraphs 1 and 2 shall not apply
if the beneficial owner of the
dividends, being a resident of a
Contracting State, carries on business
in the other Contracting State of which
the company paying the dividends is a
resident, through a permanent
establishment situated therein, or
performs in that other State independent
personal services from a fixed base
situated therein, and the holding in
respect of which the dividends are paid
is effectively connected with such
permanent establishment or fixed base .
In such a case, the provisions of
Article 7 or Article 14, as the case may
be, shall apply.
5. Where a
company which is a resident of a
Contracting State derives profits or
income from the other Contracting State,
that other State may not impose any tax
on the dividends paid by the company,
except insofar as such dividends are
paid to a resident of that other State
or insofar as the holding in respect of
which the dividends are paid is
effectively connected with a permanent
establishment or a fixed base situated
in that other State, nor subject the
company's undistributed profits to a tax
on the company's undistributed profits,
even if the dividends paid or the
undistributed profits consist wholly or
partly of profits or income arising in
such other State .
Article 11
INTEREST
1.
Interest arising in a Contracting State
and paid to a resident of the other
Contracting State may be taxed in that
other State .
2. However, such
interest may also be taxed in the
Contracting State in which it arises and
according to the laws of that State, but
if the recipient is the beneficial owner
of the interest the tax so charged shall
not exceed ( … ) percent of the gross
amount of the interest .
The competent authorities
of the Contracting States shall by
mutual Agreement settle the mode of
application of this limitation.
3.
The term " interest " as used in this
Article means income from debt-claims of
every kind, whether or not secured by
mortgage and whether or not carrying a
right to participate in the debtor's
profits, and in particular, income from
government securities and income from
bonds or debentures, including premiums
and prizes attaching to such securities,
bonds or debentures. Penalty charges for
late payment shall not be regarded as
interest for the purpose of this Article
.
4. The provisions
of paragraphs 1and 2 shall not apply if
the beneficial owner of the interest,
being a resident of a Contracting
State, carries on business in the other
Contracting State in which the interest
arises, through a permanent
establishment situated therein, or
performs in that other State independent
personal services from a fixed base
situated therein, and the debt-claim in
respect of which the interest is paid is
effectively connected with such
permanent establishment or fixed base .
In such case the provisions of Article
7 or Article 14, as the case may be,
shall apply.
4.
Interest shall be deemed
to arise in a Contracting State when the
payer is that State itself, a political
sub-division, a local authority or a
resident of that State . Where, however,
the person paying the interest, whether
he is a resident of a Contracting State
or not, has in a Contracting State a
permanent establishment or a fixed base
in connection with which the
indebtedness on which the interest is
paid was incurred, and such interest is
borne by such permanent establishment or
fixed base, then such interest shall be
deemed to arise in the State in which
the permanent establishment or fixed
base is situated .
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 interest,
having regard to the debt-claim for
which it is 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 this Convention.
Article 12
ROYALTIES
1.
Royalties arising in a Contracting
State and paid to a resident of the
other Contracting State may be taxed in
that other State .
2.
However, the royalties referred to in
paragraph 1 of this Article may also be
taxed in the Contracting State in which
they arise and according to the laws of
that State, but if the recipient is the
beneficial owner of the royalties the
tax so charged shall not exceed ( … )
percent of the gross amount of the
royalties .
J[3.
The term "royalties" as used in this
Article means payments, whether
periodical or not, and in whatever form
or name or nomenclature to the extent to
which they are made as consideration for
:
1. the use of, or the right to
use, any copyright, patent, design or
model, plan, secret formula or process,
trademark or other like property or
right; or
2. the use of, or the right to
use, any industrial, commercial, or
scientific equipment, or
3. the supply of
scientific,technical, industrial or
commercial knowledge or information ;
or
4. the supply of any assistance
that is ancillary and subsidiary any
such property or right as is mentioned
in sub-paragraph (a), any such equipment
as is mentioned in sub-paragraph (b), or
any such knowledge or information as is
mentioned in sub-paragraph (c); or
5.
the use of, or the right to use:
- motion picture
films; or
- films or video for
use in connection with television; or
- tapes for use in
connection with radio broadcasting ;or
6. total or partial forbearance
in respect of the use or supply or any
property or right referred to in this
paragraph.]
Y[3. The
term "royalties" as used in this
Article means payments of any kind,
received as a consideration for the use
of, or the right to use, any copyright
of literary, artistic or scientific work
including cinematograph films, any
patent, trade mark, design or model,
plan, secret formula or process, or for
the use of, or the right to use any
industrial, commercial, or scientific
equipment, or for information concerning
industrial, commercial or scientific
experience .]
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 on business
in the other Contracting State in which
the royalties arise, through a permanent
establishment situated therein, or
performs 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 or
Article 14, 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, a political sub-division,
a local authority or a resident of that
State . Where, however, the person
paying the royalties, whether he is a
resident of a Contracting State or not,
has in a Contracting State a permanent
establishment or fixed base in
connection with which the liability to
pay the royalties was incurred, and
such royalties are borne by such
permanent establishment or fixed base,
then such royalties shall be deemed to
arise in the State in which the
permanent establishment or fixed base is
situated .
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 be 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 this
Convention.
Article 13
CAPITAL GAINS
1.
Gains derived by a resident of a
Contracting State from the alienation of
immovable property referred to in
Article 6 and situated in the other
Contracting State may be taxed in that
other State .
2.
Gains from the alienation of movable
property forming part of the business
property of a permanent establishment
which an enterprise of a Contracting
State has in the other Contracting State
or of movable property pertaining to a
fixed base 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
.
3. Gains from the
alienation of ships or aircraft operated
in international traffic, boats engaged
in inland waterways transport or movable
property pertaining to the operation of
such means of ships, aircraft or boats
shall be taxable only in the Contracting
State in which the place of [effective
management of the enterprise is
situated] .
4. Gains from
the alienation of any property other
than that referred to in paragraphs 1, 2
and 3 shall be taxable only in the
Contracting State
[ of which the alienator is resident] .
J[where the gains arise].
Article 14
INDEPENDENT PERSONAL
SERVICES
1.
Income derived by a
resident of a Contracting State in
respect of professional services or
other independent activities of a
similar character shall be taxable only
in that State, unless:
(1) if he has a fixed base
regularly available to him in the other
Contracting State for the purpose of
performing his activities; in that case,
only so much of the income as is
attributable to that fixed base may be
taxed in that other State; or
(2) if his stay in the other
State is for a period or periods
aggregating [183] days or more
in any 12-month period commencing or
ending in the fiscal year concerned; in
that case, only so much of the income as
is derived from his activities performed
in that other State may be taxed in that
other State; or
J(3) if the remuneration for his
activities in the other Contracting
State is paid by a resident of that
Contracting State or is borne by a
permanent establishment or a fixed base
situated in that Contracting State and
exceeds in the fiscal year the
equivalent of US $ …….
2. The term
"professional services" includes
especially independent scientific,
literary, artistic, educational or
teaching activities as well as the
independent activities of physicians,
lawyers, engineers, architects,
surgeons, dentists and accountants.
Article 15
DEPENDENT PERSONAL
SERVICES
1. Subject to the
provisions of Articles 16, 18, 19, 20
and 21, 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 :
1) the recipient is present in the
other State for a period or periods not
exceeding in the aggregate [183]
days in any twelve-months period
commencing or ending in the fiscal year
concerned, and
2) the remuneration
is paid by, or on behalf of, an employer
who is not a resident of the other
State, and
3) the remuneration
is not borne by a permanent
establishment or a fixed base which the
employer has in the other State .
Y[3. Notwithstanding
the preceding provisions of this
Article, remuneration derived
by resident of a Contracting State
shall be taxable only in that State if
the
remuneration is paid in
respect of :
1. an employment
exercised in the other Contracting State
in connection with a building site, a
construction or installation project in
connection therewith, for the period of
…months during which such site project
do not constitute a permanent
establishment in that other State.
2. an employment
exercised aboard a ship or aircraft
operated in international traffic or
aboard a boat engaged in inland
waterways transport.
J[3.
Notwithstanding the preceding provisions
of this Article, remuneration derived
in respect of an employment exercised
aboard a ship or aircraft operated in
international traffic by an enterprise
of a Contracting State shall be taxable
only in that State.]
Article 16
DIRECTOR'S FEES
Director's fees and other similar
payments derived by a resident of a
Contracting State in his capacity as a
member of the board of directors of a
company which is a resident of the other
Contracting State may be taxed in that
other Contracting State . |