Other income taxation: generally taxable only in the resident state, except PE-connected income and local lottery winnings. Other income of a resident is generally taxable only in the resident Contracting State, except where the beneficial owner 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, in which case business profits or independent personal services rules apply; lottery and similar gaming winnings may be taxed where they arise.