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II SÉRIE - NÚMERO 53

scientific equipment, or for information concerning industrial, comercial or scientific experience.

4 — The provisions of paragraphs I and 2 shall not apply if the beneficial owner of the royalties, being a resident of a Contracting State, carries on business in the other Contracting State in which the royalties arse, through a permanent establishmemt situa/ted there in, or performs in that other State independent personal services from a fixed base situated therein, and in right or property in respect of which the royalties are attributed or paid is effectively connected with such permanent establishment or fixed base. In such case, royalties may be taxed in that other State, and according to its taxation law.

5 — Royalties shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person attributing or paying the royalties, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment or a fixed base in connection with which the obligation to pay these royalties was incurred, and such royalties are borne by such permanent establishment or fixed base, then such royalties shall be deemed to arise in the State in which the permanent establishment or fixed base is situated.

6 — Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the royalties, having regard to the use, right or information for which they are attributed or paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this article shall apply only to the last mentioned amount. In such case, the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Convention.

ARTICLE 13 (Capital gains)

1 — Gains derived by a resident of a Contracting State from the alienation of immovable property referred to in article 6 and situated in the other Contracting State, may be taxed in that other State.

2 — Gains from the alienation of movable property forming part of the business property of a permanent establishment which an enterprise of a Contracting State has in the other Contracting State or of movable property pertaining to a fixed base available to a resident of a Contracting State in the other Contracting State for the purpose of performing independent personal services, including- such gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or of such fixed base, may be taxed in that other State.

3 — Gains from the alienation of ships or aircraft operated in international traffic, or movable property pertaining to the operation of such ships or aircraft, shall be taxable only in the Contracting State in which the place of effective management of the enterprise is situated.

4 — Gain from the alienation of any property other than that referred to in paragraphs 1, 2 and 3, shall be taxable only in the Contracting State of which the alienator is a resident.

5 — The provisions of this article shall not be construed as restricting the right of a Contracting State to tax the gains derived from capital increase of companies having their head office or their effective management in that State by the incorporation of reserves or by the issue of shares.

ARTICLE 14 (Independent personal services)

1 — Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character shall be taxable only in that State. However, in the following circumstances such income may be taxed in the other Contracting State, that is to say:

o) If he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities; in that case, only so much of the income as is attributable to that fixed base may be taxed in that other Contracting State; or

b) If his stay in the other Contracting State is

for a period or periods exceeding in the aggregate 183 days in the fiscal year; or

c) If the gross amount derived by him for the

exercise of such activity in the other Contracting State exceeds, in the fiscal year concerned, US$2000 or its correspondejit in Czechoslovak or Portuguese currency.

2 — The term ((professional servicesn includes especially independent scientific, literary, artistic, educational or teaching activities as well as the independent activities of physicians, lawyers, engineers, architets, dentists and accountants.

ARTICLE 15 (Dependent personal services)

1 —Subject to the provisions of articles 16, 18, 19 and 20, salaries, wages and other similar remuneration derived by a resident of a Contracting State in respect of an employment shall be taxable only in that State unless the employment is exercised in the other Contracting State. If the employment is so exercised, such remuneration as is derived therefrom may be taxed in that other State.

2 — Notwithstanding the provision of paragraph 1, remuneration derived by a resident of a Contracting State in respect of an employment exercised in the other Contracting State shall be taxable only in the first-mentioned State if:

a) The recipient is present in the other State

for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and

b) The remuneration is paid by, or on behalf of,

an employer who is not a resident of the other State; and