ARTICLE 15

Independent Personal Services

In dealing with the taxation of income from personal services the Convention distinguishes between "independent" and "dependent" personal services. The Convention also provides special treatment for individuals who are "public entertainers" and for amounts received for furnishing the personal services of others.

Under paragraph (1), income derived by an individual resident of one Contracting State from the performance of personal services in an independent capacity may be taxed only by that Contracting State. However, under paragraph (2), such income derived from services performed in the other Contracting State may also be subject to tax in that other Contracting State if the individual is present therein for a period or periods aggregating 90 days or more in the taxable year. Under the saving clause of paragraph (3) of Article 6 (General Rules of Taxation), the other Contracting State may also tax any individual who is a citizen of that other Contracting State without regard to this Article.

Services performed by an individual in an independent capacity are services performed for his own account where he receives the income and bears the losses arising from such services. Generally, as noted in paragraph (3), the term "personal services in an independent capacity" includes but is not limited to, scientific, literary, artistic, educational, or teaching activities as well as services rendered by physicians, lawyers, engineers, architects, dentists and accountants performing personal services.