7 DE SETEMBRO DE 1995

1007

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 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 die laws of. each Contracting State, due regard being had to the other provisions of the Convention.

Article 14 Capital gains

1 — Gains derived by a resident of a Contracting State from the alienation of immovable property "(real property) situated in the other Contracting State may'be taxed in that other State.

2 — For the purposes of paragraph 1, immovable property situated in Portugal includes stock, participations, or other rights in a company or other legal person the property of which consists, directly or indirectly, principally of immovable property situated in Portugal; and real property situated in the United States includes a United States;real property interest. . „ . . ;•.:

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 die Contracting State of which the alienator is a resident. ;

Article 15 • ■■ Independent personal services

V —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 die 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 mat 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 supports, 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 die 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 an employment exercised in the other Contracting State shall be taxable only in me 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 entided 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:

0 That is a resident of a Contracting State in whose principal class of shares there is sub-stancial and regular trading on a recognized securities exchange; or

ii) 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 b); or