ARTICLE 15

Independent Personal Services

This Article concerns the taxation of income from the performance of independent personal services. Independent personal services are, in general terms services performed by an individual for his own account where he receives the income and bears the losses arising from the services. Generally, they include personal services performed by a self-employed individual,

a sole proprietor, or a partner, but not services performed as an employee or an officer of a company. Services performed as a director of a corporation are typically independent services, except to the extent that the director is also an officer of the corporation.

Paragraph 1 states that, with two exceptions, an individual resident of one of the Contracting States may be taxed only by that State with respect to income from independent personal services. The exceptions occur if the individual has a fixed base in the other Contracting State for the purpose of performing his Services, or if the individual stays in that other State for sore than 120 days in a period of 12 consecutive months. In the first case, the other Contracting State may tax the income attributable to the fixed base. In the second case, the other Contracting State may tax the income attributable to the services performed in its territory. In either case the State of residence (or citizenship) may also tax that income, subject to providing relief from double taxation in accordance with Article 23 (Relief from Double Taxation).