Dependent personal services: residency-based taxation with limited source-state taxation when employment is exercised abroad under conditions. Remuneration for dependent personal services is taxable in the recipient's State of residence unless the employment is exercised in the other State, in which case that other State may tax it. However, where three conditions are satisfied - short aggregate presence in the other State, payment by an employer not resident in that other State, and the remuneration not borne by a permanent establishment or fixed base there - taxation is confined to the residence State. Pay for employment on ships or aircraft in international traffic may be taxed by the State of the enterprise's 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.
Dependent personal services: residency-based taxation with limited source-state taxation when employment is exercised abroad under conditions.
Remuneration for dependent personal services is taxable in the recipient's State of residence unless the employment is exercised in the other State, in which case that other State may tax it. However, where three conditions are satisfied - short aggregate presence in the other State, payment by an employer not resident in that other State, and the remuneration not borne by a permanent establishment or fixed base there - taxation is confined to the residence State. Pay for employment on ships or aircraft in international traffic may be taxed by the State of the enterprise's residence.
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