ARTICLE 19

Teachers and Researchers

This article substantially follows the rules contained in the 1954 Convention. The new Convention provides an exemption from tax which applies to an individual who, at the invitation of either the Government of a State or an accredited educational institution of that State, is temporarily present in such State for the primary purpose of teaching or engaging in research, or both, at such an accredited educational institution. In order for the exemption to apply, the individual must either be a resident of the other State at the time he comes to visit the host State or, until the time the exemption commences under this article, he must have been exempt from tax in the host State under paragraph (1)(a) of Article 20 (relating to students and trainees). Since the period of temporary visit may be of such duration that an individual may lose his status as a resident of the State of which he was a resident, the article makes clear that the individual need only be a resident of such state (or exempt under Article 20) at the beginning of his visit. The exemption is for the individual's income from personal services for teaching or research at such accredited educational institution. The exemption extends for a period which in no case may exceed two years from the individual's arrival for the purpose of teaching or research or from the date he completed the study, training, or research with respect to which the exemption in paragraph (1)(a) of Article 20 applied, whichever is applicable. In addition, under Article 22 (relating to rules applicable to personal income articles), the combination of consecutive exemptions under Article 20 and this article may not extend beyond 5 taxable years from the date of the individual's arrival. If the individual's visit exceeds the period of time for which the exemption under this article is applicable, the exemption applies to the income received by the individual before the expiration of such period. The exemption does not apply to income from research undertaken not in the public interest but primarily for private benefit of a specific person or persons.