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II SÉRIE-A — NÚMERO 44

3 — Gains from the alienation of movable (personal) property forming part of the business property of a permanent establishment that an enterprise of a Contracting State has or had in the other Contracting State, or of movable property pertaining to a fixed base that is or was available to a resident of a Contracting State in the other Contracting

State for the purpose of performing independent personal services, including gains from the alienation of such a permanent establishment (alone or with the whole enterprise) or such a fixed base, may be taxed in that other State.--•

4 — Gains derived by an enterprise of a Contracting State from the alienation of ships or aircraft operated in international traffic or movable property pertaining thereto shall be taxable only in that State.

5 — Gains described in the last sentence of paragraph 3 of article 13, «Royalties», shall be taxable only in accordance with the provisions of article 13.

6 — Gains from the alienation of any property other than property referred to in paragraphs 1 through 5 shall be taxable only in the Contracting State of which the alienator is a resident.

Article 15 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 except in the following circumstances, when such income may also be taxed in the other Contracting State:

a) If he has or had 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 or was attributable to that fixed base may be taxed in that other State; or

b) If his stay in the other Contracting State is for a period or periods amounting to or exceeding in the aggregate 183 days in any 12-month period commencing or ending in the taxable year concerned; in that case, only so much of the income as is derived from his activities performed in that other State may be taxed in that other State.

2 — The term «professional services* includes especially independent scientific, literary, artistic, educational, or teaching activities as well as the independent activities or physicians, lawyers, engineers, architects, dentists, and accountants.

Article 16

Dependent personal services

1 —Subject to the provisions of articles 18, «Directors fees», 19, «Artists and sportmen», 20 «Pensions, annuities, alimony, and child support*, 21, «Government service*. 22, «Teachers and researchers*, and 23, «Students and trainees*, 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 provisions of paragraph 1, remuneration derived by a resident of a Contracting State in respect of ah 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 any 12-month period commencing or ending in the taxable 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

c) The remuneration is not borne by a permanent establishment of a fixed base which the employer has in the other State.

3—Notwithstanding the preceding provisions of this article, remuneration derived by a resident of a Contracting State in respect of an employment as a member of the regular complement of a ship or aircraft operated in international traffic shall be taxable only in that State.

Article 17

Limitation on benefits

1 — A resident of a Contracting State shall be entitled to the benefits of this Convention only if such person is:

a) An individual; or

b) A Contracting State, a political or administrative subdivision or local authority thereof, or an institution or organization wholly owned by them; or

c) A company:

i) That is a resident of a Contracting State in whose principal class of shares there is substancial and regular trading on a recognized securities exchange; or

it) More than 50 percent of each class of whose shares is owned by companies that are residents of either Contracting State, in whose principal class of shares there is substancial and regular trading on a recognized securities exchange, or by persons referred to in subparagraph i>); or

d) An organization, trust, or other arrangement referred to in subparagraph 3, b), of the Protocol, provided that more than half of the members, participants, or beneficiaries, if any, in such organization, trust, or arrangements are residents of that Contracting State who are entitled, under this article, to the benefits of this Convention; or

e) A person with respect to which both of the following conditions are satisfied;

0 The ultimate beneficiai owners of more than 50 percent of the beneficial interest in such person (or, in the case of a company, more than 50 percent of the vote and value of each class of the company's shares) are persons entitled to the benefits of this Convention under this paragraph 1 or citizens . of the United States; and it) Less than 50 percent of the gross income of such person is used, directly or indirectly, to meet liabilities (including liabilities for interest of royalties) other than to persons entitled to the benefits of this Convention under this paragraph 1 or citizens of the United States.

2—A resident of a Contracting State that is not enfttedte the benefits of this Convention under paragraph 1 shall, never-