Replaced by new DTA, which applies in UK from 1st April 2003 for
CT, 6th April 2003 for IT and 1st January 2004 for PRT. For US
withholding taxes it applies from 1st May 2003 and for other US
taxes from 1st January 2004. See DT19939D and E.
(1) Subject to the provisions of Articles 18 (Pensions) and
19 (Government service), 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 an employment exercised in the other Contracting State
shall be taxable only in the first-mentioned State if:
(a) the recipient is present in that other State for a
period not exceeding in the aggregate 183 days in the tax year
concerned; and
(b) the remuneration is paid by, or on behalf of, an
employer who is not a resident of that other State; and
(c) the remuneration is not borne as such by a permanent
establishment or a fixed base which the employer has in that other
State.
(3) Notwithstanding the preceding provisions of this
Article, remuneration in respect of an employment as a member of
the regular complement of a ship or aircraft in international
traffic may be taxed by the Contracting State of which the employer
operating the ship or aircraft is a resident.
