Employment income taxation: resident state rule with exceptions for short term cross border services, nonresident employer, and no PE bearing. Article 15 provides that remuneration for dependent personal services is generally taxable only in the resident State unless the employment is exercised ... Summary
Employment income taxation: resident state rule with exceptions for short term cross border services, nonresident employer, and no PE bearing.
Article 15 provides that remuneration for dependent personal services is generally taxable only in the resident State unless the employment is exercised in the other Contracting State, in which case the other State may tax it. Source state taxation is excluded where three conditions are met: the employee's presence in the other State is below a specified threshold for the year; the payor is not resident in the other State; and the remuneration is not borne by a permanent establishment or fixed base of the employer in that other State. Remuneration for service aboard ships or aircraft in international traffic may be taxed in the enterprise's State.
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