ARTICLE 21

Students and Trainees

Under the existing Convention remittances received from within one State by citizens of that State residing in the other State for the purpose of study are exempt from tax by the other State. The OECD Model Convention includes a similar provision.

The proposed Convention expands the exemption available to students by providing that an individual who is a resident of one State at the time he becomes temporarily present in the other State for the purpose of studying at a university or other recognized institution. of securing training for qualification in a profession or of studying or doing research as recipient of a grant, allowance, or award from a governmental, religious, charitable, scientific, literary, or educational institution is exempt from tax in the host State on:

(1) Gifts from abroad for his maintenance and study; (2) The grant, allowance, or award; (3) Income from personal services performed in the host State not in excess of $2.000 (or its equivalent in Belgium francs) for any taxable year.

These exemptions continue for such period of time as may be reasonably or customarily required to effectuate the purpose of his visit but in no event may an individual have the benefit of this

Article and Article 20 (Teachers) for more than a total of 5 taxable years from the date of arrival.

In addition, a resident of one State employed by or under contract with a resident of that State who, at the time he is a resident of that State, becomes temporarily present in the other State for the purpose of studying, or acquiring technical, professional, or business experience from a person other than a resident of the first-mentioned State or a person related to such resident, is exempt from tax in the host State on income not in excess of $5,000 (or its equivalent in Belgian francs) from personal services rendered in the host. The individual is exempt for a period of 12 consecutive months which period commences with the first month in which he begins working or receiving compensation.

Also an individual who is a resident of one State and who is temporarily present in the host State as a participant in a government program of the host State for the primary purpose of training, research, or study is entitled to an exemption by the host State with respect to his income from personal services relating to such training, research, or study performed in the host State in an amount not in excess of $10,000 (or its equivalent in Belgium francs). To be entitled to this exemption the program must be a program which does not exceed 1 year in duration. If this qualification is met, then the income from personal services received with respect to such program is exempt.

If an individual qualifies for the benefits of more than one of the provisions of the personal services articles, he may choose the provision most favorable to him, but he may not claim the benefits of more than one provision in any taxable year as a means of avoiding the limitations provided.