Limited presence rule for employment income prevents host-state taxation if employer is nonresident and remuneration not borne locally. Remuneration paid to a resident is taxable only in the residence State unless the employment is exercised in the other State, in which case that State may tax it. Host state taxation is precluded if the worker's presence in the other State is limited, the employer paying the remuneration is not resident in the other State, and the remuneration is not borne by the employer's permanent establishment or fixed base there. Remuneration for employment aboard ships or aircraft in international traffic may be taxed where the enterprise's place of effective management is located.
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.
Limited presence rule for employment income prevents host-state taxation if employer is nonresident and remuneration not borne locally.
Remuneration paid to a resident is taxable only in the residence State unless the employment is exercised in the other State, in which case that State may tax it. Host state taxation is precluded if the worker's presence in the other State is limited, the employer paying the remuneration is not resident in the other State, and the remuneration is not borne by the employer's permanent establishment or fixed base there. Remuneration for employment aboard ships or aircraft in international traffic may be taxed where the enterprise's place of effective management is located.
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