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ARTICLE 6

EXEMPTIONS

(1) Special Exemptions.

Income derived by an individual who is a resident of one of the Contracting States shall be exempt from tax in the other Contracting State as provided in sub-paragraphs (a) through (f).

  • (a) Governmental Employees.
    • (1) An individual receiving remuneration from government funds of the Contracting State of which the individual is a citizen for labor or personal services performed as an employee of governmental agencies or institutions of that Contracting State in the discharge of governmental functions shall not be subject to tax on such remuneration in that other Contracting State.
    • (2) Labor or personal services performed by a citizen of one of the Contracting States shall be treated by the other Contracting State as performed in the discharge of governmental functions if such labor or personal services would be treated under the internal laws of the first Contracting State as so performed. However, it is understood that persons engaged in commercial activity, such as employees or representatives of commercial organizations of the USA and employees or representatives of the foreign trade organizations of the USSR, shall not be considered in the USSR and USA respectively as engaged in the discharge of governmental functions.
    • (3) The provisions of this Convention shall not affect the fiscal privileges of diplomatic and consular officials under the general rules of international law or under special agreements.
  • (b) Participants in Programs of Intergovernmental Co-operation.
    • An individual who is a resident of one of the Contracting States and who is temporarily present in the other Contracting State under an exchange program provided for by agreements between the governments of the Contracting States on co-operation in various fields of science and technology shall not be subject to tax in that other Contracting State on remuneration received from sources within either Contracting State.
  • (c) Teachers and Researchers.
    • (1) An individual who is a resident of one of the Contracting States and who is temporarily present in the other Contracting State at the invitation of a governmental agency or institution or an educational or scientific research institution in that other Contracting State for the primary purpose of teaching, engaging in research, or participating in scientific, technical or professional conferences shall not be subject to tax in that other Contracting State on his income from teaching or research or participating in such conferences.
    • (2) Sub-paragraph (1) shall not apply to income from research if such research is undertaken primarily for the benefit of a private person or commercial enterprise of the USA or a foreign trade organization of the USSR. However, sub-paragraph (1) shall apply in all cases where research is conducted on the basis of inter-governmental agreements on cooperation.
  • (d) Students.
    • An individual who is a resident of one of the Contracting States and who is temporarily present in the other Contracting State for the primary purpose of studying at an educational or scientific research institution or for the purpose of acquiring a profession or a specialty shall be exempt from taxes in the other Contracting State on a stipend, scholarship, or other substitute type of allowance, necessary to provide for ordinary living expenses.
  • (e) Trainees and Specialists.
    • An individual who is a resident of one of the Contracting States, who is temporarily present in the other Contracting State for the primary purpose of acquiring technical, professional, or commercial experience or performing technical services, and who is an employee of, or under contract with, a resident of the first-mentioned Contracting State, shall not be subject to tax in that other Contracting State on remuneration received from abroad. Also, such individual shall not be subject to tax in that other Contracting State on amounts received from sources within that other Contracting State which are necessary to provide for ordinary living expenses.
  • (f) Duration of Exemptions.
  • The exemptions provided for under sub-paragraphs (b), (c), (d) and (e) of this article shall extend only for such period of time as is required to effectuate the purpose of the visit, but in no case shall such period of time exceed:
    • (1) One year in the case of sub-paragraphs (b) (Participants in programs of inter-governmental co-operation) and (e) (Trainees and specialists);
    • (2) Two years in the case of sub-paragraph (c) (Teachers and researchers); and
    • (3) Five years in the case of sub-paragraph (d) (Students).
  • If an individual qualifies for exemption under more than one of sub-paragraphs (b), (c), (d) and (e), the provisions of that sub-paragraph which is most favorable to him shall apply. However, in no case shall an individual have the cumulative benefits of sub-paragraphs (b), (c), (d) and (e) for more than five taxable years from the date of his arrival in the other Contracting State.

(2) General Exemptions.

  • Income derived by an individual who is a resident of one of the Contracting States from the performance of personal services in the other Contracting State, which is not exempt from tax in accordance with paragraph (1) of this article, may be taxed in that other Contracting State, but only if the individual is present in that other Contracting State for a period aggregating more than 183 days in the taxable year.