440-(42)

II SÉRIE-A — NÚMERO 29

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:

0 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 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 in an officiary recognized institution 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 Professors and researchers

1 — An individual who is or was a resident of a Contracting State immediately before visiting the other Contracting State, solely for the purposes of teaching or scientific research at an university, college, school, or other similar educational or scientific research institution which is recognised as non-profitable by the Government of that other State, or under an official programme of cultural exchange, for a period not exceeding two years from the date of his first arrival in that other State, shall be exempt from tax in that other State on his remuneration for such teaching or research.

2 — The preceding provision of this article shall also apply to an individual who carries out research within the scope of a scholarship granted by a government, religious, charitable, scientific, literary or educational organization, if such scholarship is exempt from tax.

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 may be taxed 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.

3 — However, items of income of a resident of a Contracting State not dealt with in the foregoing articles of this Convention and arising in the other Contracting State may also be taxed in that other State.

CHAPTER IV Methods for the elimination of double taxation

Article 23 Elimination of double taxation

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

a) Where a resident of Portugal derives income which, in accordance with the provisions of this Convention, may be taxed in Venezuela, 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 Venezuela; 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 Venezuela; and

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

2 — In the case of a resident of Venezuela,- double taxation shall be eliminated as follows: where a resident of Venezuela derives income which, in accordance the provisions of this Convention, may be taxed in Portugal, such income shall be exempt from Venezuelan tax.

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 nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision snail, notwithstanding the provisions of article 1, also apply to persons who are not residents of one or both of the Contracting States.

2 — The taxation on a permanent establishment which an enterprise of a Contracting State has in the

other Contracting State shall not be less favourably

levied in that other State than the taxation levied on