ARTICLE 17

Dependent Personal Services

Under paragraph (1), wages, salaries, and similar remuneration derived by an individual who is a resident of one Contracting State from labor or personal services performed as an employee, including income from services performed by an officer of a corporation or company, may be taxed by that Contracting State. If such remuneration is derived from sources within the other Contracting State, it may be taxed by that other contracting State unless it is exempt from tax in that other State under paragraph (2) or under Articles 20 (private Pensions and Annuities), 22 (Governmental functions), 23 (Teachers) and 24 (Students and Trainees).

Under paragraph (2), dependent personal service income derived by an individual resident of one contracting State will be exempt from tax by the other contracting State if:

(a) the individual is present in that other contracting State for a period or periods aggregating less than 183 days in the taxable year;

(b) the individual is an employee of a resident of the first-mentioned contracting State or of a permanent establishment maintained in the first-mentioned Contracting State;

(c) the remuneration is not borne as such (i.e., as a deduction for salary payments) by a permanent establishment which the employer has in the other contracting State; and

(d) the remuneration is subject to tax in the first-mentioned Contracting State. Income of a United States citizen or resident which is excluded from tax by reason of section 911 is not considered subject to tax by the United States.

Such income may also be taxed by that other contracting state without regard to this Article if the individual is a citizen of that other contracting State, because of the saving clause of paragraph (3) of Article 6 (General Rules of Taxation).

Under paragraph (3), and notwithstanding paragraphs (1) and (2), remuneration derived by an employee (even if a resident of a State other than a Contracting State) of a resident of one Contracting State for labor or personal services performed as a member of the regular complement of a ship or aircraft operated in international traffic by a resident of that Contracting State may be taxed by that Contracting State. In addition, this paragraph is subject to the saving clause of paragraph (3) of Article 6 (General Rules of Taxation) so that the other Contracting State may tax its citizens or residents without regard to this paragraph.