Other income taxation: residence-based rule yields to source-state taxation when effectively connected to a permanent establishment or fixed base. Other items of income not addressed elsewhere in the Convention are generally taxable only in the State of residence, but if the resident carries on business through a permanent establishment or performs independent personal services from a fixed base in the other State and the income is effectively connected with that permanent establishment or fixed base, the source State may tax that income under the rules governing business profits and independent personal services; the source State may also tax resident income not dealt with elsewhere when it arises in the source State, subject to those nexus conditions.
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.
Other income taxation: residence-based rule yields to source-state taxation when effectively connected to a permanent establishment or fixed base.
Other items of income not addressed elsewhere in the Convention are generally taxable only in the State of residence, but if the resident carries on business through a permanent establishment or performs independent personal services from a fixed base in the other State and the income is effectively connected with that permanent establishment or fixed base, the source State may tax that income under the rules governing business profits and independent personal services; the source State may also tax resident income not dealt with elsewhere when it arises in the source State, subject to those nexus conditions.
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 
