ARTICLE 20

Visiting Professors and Teachers; Students and Trainees

Paragraph 1 of the Article deals with visiting professors and teachers. Paragraphs 2 through 5 deal with students, apprentices and trainees. Paragraph 1 provides that if a professor or teacher who is, and remains, a resident of one Contracting State visits the other Contracting State for a period not exceeding two years for the purpose of teaching or carrying out advanced study or research at certain categories of institutions, he will be exempt from tax in the State which he is visiting (the "host State") on his compensation for such teaching, study or research. The host State exemption will apply if the teaching, study or research is carried on at an accredited university, college, school or other educational institution, or at a public research institution or other institution engaged in research for the public benefit. The term "public research institution" is intended to cover such institutions as the National Institutes of Health in the United States.

For the exemption to apply to income from research, the research must be undertaken in the public interest, and not primarily for the private benefit of a specific person or persons. A person is not entitled to the benefits of this paragraph if he has, during the immediately preceding period, enjoyed the benefits of paragraphs 2, 3 or 4 of this Article as a student, apprentice or trainee. If, however, following the period in which a person claimed student benefits under paragraphs 2, 3, or 4, that person resumes residence and physical presence in his original home State before returning to the host State as a teacher or researcher, he may claim the benefits of paragraph 1. As clarified in Paragraph 18 of the Protocol, unless the competent authorities agree otherwise, if a professor or teacher remains in the host country for more than the specified two year period, he may be subject to tax in that State, under its law, for the entire period or his presence.

There is no provision in the U.S. or OECD Models dealing with professors or teachers. It is not standard U.S. treaty policy to provide benefits to visiting teachers by treaty. When, however, the treaty partner wishes to include such a provision, the United States will frequently agree, particularly, as in this case, when an existing Convention with that partner contains a similar provision (see Article XII of the 1954 Convention).

Paragraph 2 deals with payments, other than compensation for personal services, received by a student or business apprentice. If a student or business apprentice is present in the host State for the purpose of his full-time education or training, and he was a resident of the other Contracting State immediately before his visit, he will be exempt from tax in the host State on payments (other than compensation for personal services) arising from sources, or remitted from, outside the host State, which are for the purpose of the student's or trainee's maintenance, education or training.