Taxation of other income: residence-based taxation subject to permanent establishment or fixed base exceptions allowing source-state taxation. Items of income of a resident not expressly addressed elsewhere in the Convention are generally taxable only in the State of residence. Where such income is effectively connected with a permanent establishment or a fixed base in the other State-because the resident carries on business through that establishment or performs independent personal services from that fixed base-the income is taxable under the rules for business profits or independent personal services. Notwithstanding these provisions, residual items of income arising in the other State may be taxed by that State.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Taxation of other income: residence-based taxation subject to permanent establishment or fixed base exceptions allowing source-state taxation.
Items of income of a resident not expressly addressed elsewhere in the Convention are generally taxable only in the State of residence. Where such income is effectively connected with a permanent establishment or a fixed base in the other State-because the resident carries on business through that establishment or performs independent personal services from that fixed base-the income is taxable under the rules for business profits or independent personal services. Notwithstanding these provisions, residual items of income arising in the other State may be taxed by that State.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
