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b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who:

/') Is a national of that State; or ii) Did not become a resident of that State solely for the purpose of rendering the services.

2— a) Any pension paid by, or out of funds created by, a Contracting State or a political or administrative subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority shall be taxable only in that State.

b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

3—The provisions of articles 15, 16, 17 and 18 shall apply to salaries, wages and other similar remuneration, and to pensions, in respect of services rendered in connection with a business carried on by a Contracting State or a political or administrative subdivision or a local authority thereof.

Article 20 Students

Payments which a student or apprentice who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first-mentioned State solely for the purpose of his education or training receives for the purpose of his maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

Article 21 Teachers

Remuneration received for education or scientific research by an individual who is or was immediately before visiting a Contracting State a resident of the other Contracting State and who is present in the first State during a period not exceeding two years for the purpose of scientific research or for teaching at a university, college, establishment for higher education, or at an similar establishment shall be exempt from tax in the first State. provided that such establishment belongs to non-profitmaking legal entities.

Article 22 Other Income

1 — Items of income of a resident of a Contracting State, wherever arising, not dealt with in the foregoing articles of this Convention shall be taxable only in that State.

2—The provisions of paragraph 1 shall not apply to income, other that income from immovable property as defined in paragraph 2 of article 6, if the recipient of such income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the right or property in respect of which the income is paid is effectively connected with such permanent establishment or fixed base. In such case the provisions of article 7 or article 14, as the case may be, shall apply.

chapter iv

1 9

Methods for elimination of double taxation

Article 23 Elimination of double taxation

The double taxation shall be eliminated as follows:

1) In the Republic of Bulgaria double taxation shall be eliminated as follows:

d) Where a resident of Bulgaria derives income which in accordance with the provisions of this Convention may be taxed in Portugal, Bulgaria shall subject to the provisions of sub-paragraphs b) and c), exempt such income from tax;

b) Where a resident of Bulgaria derives items of income which in accordance with the provisions of articles 10, 11 and 12 may be taxed in Portugal, Bulgaria shall allow as a deduction from the tax on the income of that resident an amount equal to the tax paid in Portugal. Such deduction shall not, however, exceed that part of the tax, as computed before the deduction is given, which is attributable to such items of income derived from Portugal;

c) Where in accordance with any provisions of this Convention income derived by a resident of Bulgaria is exempt from tax in Bulgaria, the same State may nevertheless, in calculating the amount of tax on the remaining income of such residence, take into account the exempted income;

2) In the Portuguese Republic double taxation shall be eliminated as follows:

d) Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Bulgaria, Portugal shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Bulgaria. Such deduction shall not, however, exceed that part of the income tax, as computed before the deduction is given, which is attributable to the income which may be taxed in Bulgaria;

b) Where in accordance with any provision of the Convention income derived by a resident of Portugal is exempt from tax in this State, Portugal may nevertheless, in calculating the amount of tax in the remaining income of such resident, take into account the exempted income.

chapter v Special provisions

Article 24

N on-discrimination

1 — Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or