- 1
- Subject to the provisions of Articles 6, 7, 8 and 9, salaries, wages and other similar remuneration derived by a resident of a Contracting Party in respect of an employment shall be taxable only in that Party unless the employment is exercised in the other Contracting Party. If the employment is so exercised, such remuneration as is derived there may be taxed in that other Party.
- 2
- Notwithstanding the provisions of paragraph 1, remuneration derived by a resident of a Contracting Party in respect of an employment exercised in the other Contracting Party shall be taxable only in the first-mentioned Party if:
-
- a)the recipient is present in the other Party for a period or periods not exceeding in the aggregate 183 days in any twelve month period commencing or ending in the fiscal year concerned, and
- b)the remuneration is paid by, or on behalf of, an employer who is not a resident of the other Party, and
- c)the remuneration is not borne by a fixed place of business which the employer has in the other Party through which the business is wholly or partly carried out.
- 3
- Paragraph 2 of this Article shall not apply to remuneration derived by a resident of a Contracting Party in respect of an employment exercised in the other Contracting Party and paid by, or on behalf of, an employer who is not a resident of that other Party if:
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- a)the recipient renders services in the course of that employment to a person other than the employer and that person, directly or indirectly, supervises, directs or controls the manner in which those services are performed, and;
- b)those services constitute an integral part of the business activities carried on by that person.
- 4
- Notwithstanding the preceding provisions of this Article, remuneration derived by a resident of a Contracting Party in respect of an employment exercised aboard a ship or aircraft operated in international traffic, may be taxed in that Party in which the place of effective management of the enterprise is situated.
- 5
- For the purpose of this Article the place of effective management of the existing Koninklijke Luchtvaartmaatschappij N.V. (KLM N.V.) shall be deemed to be situated in the Netherlands, as long as the Netherlands has an exclusive taxing right with respect to KLM N.V. under the tax convention concluded between the Kingdom of the Netherlands and the French Republic.
