Article 17. ARTISTES AND ATHLETES

This Article deals with the taxation of income derived by public entertainers and athletes (sometimes referred to as "artistes and athletes") in respect of the performance of services as such in a Contracting State. The Article applies In cases where an artiste or athlete performs services on his ov.'?1 behalf and in cases where services are performed on behalf o! another person, as an employee or pursuant to any other arrangement.

Paragraph (1) states the general rule that notwithstanding the pro­ visions of Articles 15 (Independent Personal Services) and 16 (Dependent

Personal Services), income derived by public entertainers such as theater, motion picture, radio, or television artistes, and musicians, and by athletes, from their personal activities as such, may be taxed in the Contracting State where those activities are exercised. Such income, however, is taxable under this Article only where it exceeds $100 or Its equivalent In Philippine-pesos per day or exceeds in the aggregate $3,000 or its equivalent in Philippine pesos during the taxable year.

As noted above, this paragraph overrides the provisions of Articles 15 and 16, so that an artiste or athlete may be taxed in the State where his activities take place regardless of the period of time he is present in that State. Generally, however, income derived from services rend­ ered by producers, directors, technicians and others who are not aMistes and athletes is taxable in accordance with the provisions of Article 15 or

16, as the. case may be,

Paragraph (2) deals with cases where income In respect of the