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ARTICLE 18
Government Service
(1)
- (a) Salaries, wages and other similar remuneration, other than pensions, paid by a Contracting State or one of its political subdivisions or local authorities to an individual in respect of services rendered to that State, political subdivision or local authority, shall be taxable only in that Contracting State.
- (b) However, such salaries, wages and other similar remuneration shall be taxable only in the other Contracting State, if the services are rendered in that State and the individual who 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 such services.
(2)
- (a) Any pension paid by a Contracting State or by one of its political subdivisions or local authorities to an individual, either directly or out of funds created for that purpose, in respect of services rendered to that Contracting State, political subdivision or local authority, shall be taxable only in that State.
- (b) However, such pension shall be taxable only in the other Contracting State if the individual is a resident and a national of that State.
(3) The provisions of Articles 14, 15, 16 and 17 shall apply to salaries, wages, pensions and other similar remuneration, in consideration of services rendered in connection with a business carried on by a Contracting State or by one of its political subdivisions or local authorities.
(4) Paragraphs (1) and (2) are also applicable to salaries, wages and other similar remunerations and retirement benefits that are paid to individuals for services that were performed for the Goethe-Institute, German Academic Exchange Service and similar institutions of the Contracting State in mutual agreement. If these payments are not taxed in the institutions founding state, Article 14 applies.