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HMRC internal manual

Double Taxation Relief Manual

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HM Revenue & Customs
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DT: Yugoslavia: double taxation agreement, Article 15 Dependent personal services

 

(1) Subject to the provisions of Articles 16, 17, 18, 19 and 20 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) of this Article, 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 the other State for a period or periods not exceeding in the aggregate 183 days in the fiscal year concerned; and

(b) the remuneration is paid by, or on behalf of, a person to whom, or for whose benefit, the relevant dependent personal services are rendered and who is not a resident of the other State;

(c) the remuneration is not borne by a permanent establishment or a fixed base which the person to whom, or for whose benefit, the relevant dependent personal services are rendered has in that other State.

(3) (a) Wages and salaries paid by a Contracting State or a political subdivision or a local authority thereof to an individual shall be taxable only in that State.

(b) Wages and salaries paid by a Contracting State or a political subdivision or a local authority thereof to an individual shall be taxable only in the other Contracting State ifthe work is performed in that other State and the recipient is a resident of that other State who:

(i) is a national of that State, or

(ii) did not become a resident of that other State solely for the purpose of performing the work.

(4) Notwithstanding the provisions of paragraph (3) of this Article, wages and salaries derived by an individual for work performed in connection with a business carried on by a Contracting State or a political subdivision or a local authority thereof shall be taxable in accordance with the provisions of paragraphs (1) and (2) of this Article.

(5) Wages and salaries derived by individuals in respect of their work in the Joint Economic Representation of Yugoslavia or in the Tourist Federation of Yugoslavia shall be taxable in accordance with the provisions of paragraph (3) of this Article.

(6) Notwithstanding the preceding provisions of this Article, remuneration in respect ofan employment exercised aboard a ship or aircraft in international traffic may be taxed inthe Contracting State in which the place of effective management of the enterprise is situated.