The income derived by a non-resident from his independent
personal services in the United Kingdom is dealt with on the same
lines as the business profits of a permanent establishment of a
non-resident enterprise (see DT1726 onwards). Although the Article
is mainly concerned with individuals who carry on a profession, it
can also be relevant to an individual who carries on a trade. The
non-resident is taxed in the United Kingdom on the profits
attributable to a fixed base in the United Kingdom (see DT219).
The provisions of the independent personal services Article
are similar to those for the business profits Article and rest on
the same principles as those of the business profits Article. The
provisions of the business profits Article and the OECD commentary
thereon can therefore be used as guidance for interpreting and
applying the independent personal services Article. Hence the
principles laid down in the business profits Article as regards
allocation of profits between head office and permanent
establishment could be applied in apportioning income between the
State of residence of a person performing independent personal
services and the State where such services are performed from a
fixed base. Equally, expenses incurred for the purposes of a fixed
base should be allowed as deductions in determining the income
attributable to a fixed base in the same way as such expenses
incurred for the purposes of a permanent establishment.
