Article 16-20

Directors' fees and other compensation derived by a resident of a Contracting State in his capacity as a member of the board of directors or any similar organ of a company that is a resident of the other Contracting State may be taxed in that other State.

1.

Notwithstanding the provisions of Articles 14 (Independent Personal Services) and 15 (Dependent Personal Services), income derived by a resident of a Contracting State as an entertainer, such as a theater, motion picture, radio or television artiste, or a musician, or as a sportsman, from his personal activities as such exercised in the other Contracting State, may be taxed in that other State, except where the amount of the gross receipts derived by such entertainer or sportsman, including expenses reimbursed to him or borne on his behalf, from such activities does not exceed twenty thousand United States dollars ($20,000) or its equivalent in Estonian kroons for the taxable year concerned.

2.

Where income in respect of activities exercised by an entertainer or a sportsman in his capacity as such accrues not to the entertainer or sportsman but to another person, that income of that other person may, notwithstanding the provisions of Articles 7 (Business Profits), 14 (Independent Personal Services) and 15 (Dependent Personal Services), be taxed in the Contracting State in which the activities of the entertainer or sportsman are exercised, unless it is established that neither the entertainer or sportsman nor persons related thereto participate directly or indirectly in the profits of that other person in any manner, including the receipt of deferred remuneration, bonuses, fees, dividends, partnership distributions, or other distributions.

3.

The provisions of paragraphs 1 and 2 shall not apply to income derived from activities exercised in a Contracting State by a resident of the other Contracting State as an entertainer or sportsman if the visit to the first-mentioned State is wholly or mainly supported by public funds of the other State or a political subdivision or local authority thereof. In such a case, the income shall be taxable only in the Contracting State of which the entertainer or sportsman is a resident.

1.

Subject to the provisions of Article 19 (Government Service), pensions and other similar remuneration derived and beneficially owned by a resident of a Contracting State in consideration of past employment, whether paid periodically or as a single sum, shall be taxable only in that State, but the amount of any such pension or remuneration that would be excluded from taxable income in the other Contracting State if the recipient were a resident thereof shall be exempt from taxation in the first-mentioned State.

2.

Notwithstanding the provisions of paragraph 1, payments made by a Contracting State under the provisions of the social security or similar legislation of that State to a resident of the other Contracting State or to a citizen of the United States shall be taxable only in the first-mentioned State.

3.

Annuities derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. The term ``annuities'' as used in this paragraph means a stated sum (other than a pension) paid periodically at stated times during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered).

4.

Alimony paid by a resident of a Contracting State, and deductible therein, to a resident of the other Contracting State shall be taxable only in that other State. The term ``alimony'' as used in this paragraph means periodic payments made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, which payments are taxable to the recipient under the laws of the State of which he is a resident.

5.

Periodic payments, not dealt with in paragraph 4, for the support of a minor child made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, paid by a resident of a Contracting State to a resident of the other Contracting State, shall not be taxable in that other State.

1.

Notwithstanding the provisions of Articles 15 (Dependent Personal Services) and 17 (Artistes and Sportsmen):

a)

remuneration, other than a pension, paid by, or out of the public funds of a Contracting State or a political subdivision or a local authority thereof to an individual in respect of dependent personal services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature shall, subject to the provisions of subparagraph b), be taxable only in that State;

b)

such remuneration, however, 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

(i)

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.

Subject to the provisions of paragraph 2 of Article 18 (Pensions, Social Security, Annuities, Alimony, and Child Support):

a)

any pension paid by, or out of the public funds of a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature, shall, subject to the provisions of subparagraph b), be taxable only in that State;

b)

such pension, however, shall be taxable only in the other Contracting State if the individual is a resident of, and a national of, that State.

1.

a)

An individual who is a resident of a Contracting State at the beginning of his visit to the other Contracting State and who is temporarily present in that other Contracting State for the primary purpose of:

(i)

studying at a university or other accredited educational institution in that other Contracting State; or

(ii)

securing training required to qualify him to practice a profession or professional speciality; or

(iii)

studying or doing research as a recipient of a grant, allowance, or award from a governmental, religious, charitable, scientific, literary, or educational organization; shall be exempt from tax by that other Contracting State with respect to the amounts described in subparagraph b) of this paragraph for a period not exceeding five years from the date of his arrival in that other Contracting State.

b)

The amounts referred to in subparagraph a) of this paragraph are:

(i)

payments from abroad, other than compensation for personal services, for the purpose of his maintenance, education, study, research, or training;

(ii)

the grant, allowance, or award; and

(iii)

income from personal services performed in that other Contracting State in an aggregate amount not in excess of five thousand United States dollars ($5,000) or its equivalent in Estonian kroons for any taxable year.

2.

An individual who is a resident of a Contracting State at the beginning of his visit to the other Contracting State and who is temporarily present in that other Contracting State as an employee of, or under contract with, a resident of the first-mentioned Contracting State, for the primary purpose of:

a)

acquiring technical, professional, or business experience from a person other than that resident of the first-mentioned Contracting State, or

b)

studying at a university or other accredited educational institution in that other Contracting State, shall be exempt from tax by that other Contracting State for a period of 12 consecutive months with respect to his income from personal services in an aggregate amount not in excess of eight thousand United States dollars ($8,000) or its equivalent in Estonian kroons.

3.

An individual who is a resident of one of the Contracting States at the time he becomes temporarily present in the other Contracting State and who is temporarily present in the other Contracting State for a period not exceeding one year, as a participant in a program sponsored by the Government of that other Contracting State, for the primary purpose of training, research, or study, shall be exempt from tax by that other Contracting State with respect to his income from personal services in respect of such training, research, or study performed in that other Contracting State in an aggregate amount not in excess of ten thousand United States dollars ($10,000) or its equivalent in Estonian kroons.

4.

This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons.

---

Next: Article 21-24
Up: The Convention
Previous: Article 12-15