ARTICLE 20

Professors and Teachers

This Article provides rules for host-country taxation of visiting professors and teachers. Although the U.S. Model does not contain such a provision, a similar provision was included in the prior Convention.

Paragraph 1

Paragraph 1 provides an exemption from tax in one Contracting State for an individual who visits that State (the "host State") for a period that is not expected to exceed two years for the purpose of teaching or engaging in research at a university, college, school or other recognized educational institution in that State, or at a medical facility primarily funded from governmental sources. This rule applies only if the individual is a resident of the other Contracting State immediately before his visit begins. The exemption applies to any remuneration for such teaching or research. The exemption from tax applies for a period not exceeding two years from the date he first visits the host State for the purpose of teaching or engaging in research at the qualifying educational institution or medical facility there.

Paragraph 17 of Article 1 of the Protocol clarifies that the term “recognized educational institution” in the case of the United States means an accredited educational institution (i.e., an institution accredited by an authority that generally is responsible for accreditation of institutions

in the particular field of study).

Paragraph 2

Paragraph 2 provides that the Article shall apply to income from research only if such research is undertaken by the individual in the public interest and not primarily for the benefit of some other private person or persons.

Relation to Other Articles

Under paragraph 3(b) of Article 1 (General Scope), the saving clause (paragraph 2 of Article 1) does not apply to the benefits conferred by one of the States under this Article if the recipient of the benefits is neither a citizen of that State, nor a person who has been admitted for permanent residence there (i.e., in the United States, a "green card" holder). Thus, a resident of Italy who visits the United States for two academic years as a professor and becomes a U.S. resident according to the Code, other than by virtue of acquiring a green card, would continue to be exempt from U.S. tax in accordance with this Article so long as he is not a U.S. citizen and does not acquire immigrant status in the United States.