392-20)

II SÉRIE-A — NÚMERO 26

4 — The provisions of paragraphs 1 and 2 of this article shall likewise apply in respect of remuneration or pensions paid by:

a) In the case of Korea, the Bank of Korea, the Korean Export-Import Bank, the Korea Development Bank, and the Korea Trade Promotion Corporation; and

b) In the case of Portugal, the Bank of Portugal, the Caixa Geral de Depósitos, the Banco Nacional Ultramarino (BNU), the Bank for the External Development (BFE), the Banco Borges e Irmâo, the ICEP — Investment, Trade and Tourism of Portugal, and the COSEC — Credit Insurance Company.

Article 20

Students and apprentices

Payments which a student or business 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 this maintenance, education or training shall not be taxed in that State, provided that such payments arise from sources outside that State.

Article 21 Professors and teachers

An individual who is or was a résident of a Contracting State immediately before making a visit to the other Contracting State, who, at the invitation, of any university, college, school, or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that State, or under an official programme of cultural exchange, visits that other State for a period not exceeding two years from the date of his first arrival in that other State, solely for the purpose of theaching or research or both at such institution shall be exempt from fax in that other State on his remuneration for such teaching or research.

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 than 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 Methods for elimination of double taxation

Article 23

Methods for elimination of double taxation

1 — In the case of a resident of Korea, double taxation shall be avoided as follows:

Subject to the provisions of Korean tax law regarding the allowance as a credit against Korean tax of tax payable in any country other than Korea (which shall not affect the general principle hereof), the Portuguese tax payable (excluding, in the case of dividends, tax payable in respect of the profits out of which the dividends are paid) under the laws of Portugal and in accordance with this Convention, whether directly or by deduction, in respect of income from sources within Portugal shall be allowed as a credit against the Korean tax payable in respect of that income. The credit shall not, however, exceed that proportion of the Korean tax which the income from sources whithin Portugal bears to the entire income subject do Korean tax.

2 — In the case of a' resident of Portugal, double taxation shall be avoided as follows:

a) When a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Korea, the Portuguese Republic shall allow as a deduction from the tax on the income of that resident an amount equal to the income tax paid in Korea; 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 Korea; and

b) When 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 on the remaining income of such resident, take into account the exempted income.

3 — For the purpose of paragraphs 1 and 2 of this article, the expressions «Portuguese tax payable» in paragraph 1 or «income tax paid in Korea» in paragraph 2 shall be deemed to include any amount which would have been paid as Portuguese tax or Korean tax, as the case may be, but for the exemption, deduction or reduction of tax under the laws in force in the respective Contracting State.

CHAPTER V Special provisions

Article 24 Non-discrimination

1 — Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nations of that other State in