Taxation of cross-border professional services limited to place of performance, with temporary presence exceptions and residency protections. Profits or remuneration for professional or employee services are generally taxable only in the State where services are performed. However, a resident of one State performing services temporarily in the other State is not taxable in the State of performance if four conditions are met: presence not exceeding 183 days in the relevant period; services rendered for or on behalf of a resident of the home State; remuneration taxed in the home State; and remuneration not deductible in computing enterprise profits taxable in the State of performance. Remuneration from services permanently or predominantly performed on ships or aircraft in international traffic is taxable only by the individual's State of residence.
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 cross-border professional services limited to place of performance, with temporary presence exceptions and residency protections.
Profits or remuneration for professional or employee services are generally taxable only in the State where services are performed. However, a resident of one State performing services temporarily in the other State is not taxable in the State of performance if four conditions are met: presence not exceeding 183 days in the relevant period; services rendered for or on behalf of a resident of the home State; remuneration taxed in the home State; and remuneration not deductible in computing enterprise profits taxable in the State of performance. Remuneration from services permanently or predominantly performed on ships or aircraft in international traffic is taxable only by the individual's State of residence.
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