Dependent personal services: limited source-state taxation when presence, employer residence and permanent establishment conditions are satisfied.

Article 15 provides that remuneration for dependent personal services is taxable only in the resident State unless the employment is exercised in the other State, in which case that other State may tax it. An exception prevents source-state taxation where three cumulative conditions are met: the worker's presence in the source State is below the treaty's aggregate presence threshold in the relevant twelve month period, the payor is not a resident of the source State, and the remuneration is not borne by a permanent establishment or fixed base of the employer in the source State. Remuneration aboard ships or aircraft in international traffic may be taxed by the enterprise's State of residence.

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