ARTICLE 19. STUDENTS AND TRAINEES

This Article provides that an individual who is a resident of one State at the time he becomes temporarily present in the other State for the purpose of study­ ing at a university or other accredited institution, of securing training for quall­ flication in A profession or of studying or doing research as a recipient of a grant,

allowance, or award from a governmental, religious, charitable, scientific, iterary, or educational institution is exempt from tax in the host State on:

(1) Gifts from abroad for his maintenance and study; (2) The grant, allowance, or award; (3) Income from personal services performed in the host State not in excess of $2,000 (or Its equivalent in Trinidad and Tobago dollars) for any taxable year. The $2,000 exemption Is increased to $5,000 if a resident is securing training re­ quired to qualify him to practice a profession or a professional specialty.

These exemptions continue for such period of time as may be reasonably or customarily required to effectuate the purpose of his visit but in no event may

an individual have the benefit of this provision for more than a total of 5 taxable years from the date of arrival.

In addition, a resident of one State employed by or under contract with a resident of that State who, at the time he Is a resident of that State, becomes temporarily present in the other State for the purpose of studying or acquiring technical, professional, or business experience other than from a resident of

the first-mentioned State is exempt from tax In the host State on income not, in excess of $5,000 (or its equivalent in Trinidad and Tobago dollars) from personal services rendered in the host State. The individual is exempt for a

period of one year which period commences with the first day of the first month in which he begins working or receives compensation.

Also, an individual who is a resident of one State at the time he becomes temporarily present in the other. State for a period not exceeding one year

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and who is temporarily present in the host State as a participant in a govern­ ment program of the host State for the primary purpose of training, research

or study is entitled to an exemption by the host State with respect to his income from personal services relating to such training, research, or study performed in the host State in an amount not in excess of $10,000 (or its equivalent in Trinidad and Tobago dollars).

If an individual qualifies for the benefits of more than one-of the provisions of the personal services Articles, he may choose the provision most favorable

to him but he may not claim the benefits of more than one provision in any taxable year.

ARTICLS 20. GOVERNMENTAL SALARIES

The proposed Convention provides that wages, salaries, and similar compen­ sation, pensions, annuities, or similar benefits, which are paid by or from the public funds of one of the States to an individual who is a national of that State for services rendered to that State in the discharge of governmental functions

shall be exempt from tax by the other State.

Unlike the French Convention the proposed Convention does not apply to political subdivisions of a State. Thus, for example, employees of a State or municipal government of the United States employed In Trinidad and Tobago will not be exempt from Trinidad and Tobago tax under the proposed Con­ vention.

With respect to the application of this provision to Trinidad and Tobago, It should be noted that Trinidad and Tobago taxes on the basis of residence and not citizenship. Further, a person loses his resident status in Trinidad and Tobago for tax purposes if he remains outside the country for a continuous period of 6 months. Thus, a resident of Trinidad and Tobago employed abroad can be subject to tax in Trinidad and Tobago for no more than 0 months.

The proposed Convention also adds a specification that the compensation must be paid in connection with the discharge of functions of a governmental nature. Compen-ation paid in connection with industrial or commercial activity is treate& the same as compensation received from a private employer. The pro­

visions relating to dependent personal services, private pensions and annuities, and social security payments would apply in such a case.