ARTICLE 14

Independent Personal Services

This Article concerns the taxation of income from the performance of independent personal services. Independent personal services are, in general terms, services performed by an individual for his own account where he receives the income and bears the losses arising from the services. Generally, services rendered by persons such as physicians, lawyers, engineers, architects, dentists and accountants as sole proprietors or partners are independent personal services, whereas services performed as an employee or as an officer of, for example, a company constitute dependent personal services, which are dealt within Article 15.

Paragraph 1 of this Article provides that income derived by an individual who is a resident of a Contracting State from the performance of personal services in an independent capacity shall generally not be taxable in the other Contracting State. However, such income may also be taxed in the other Contracting State if such services are performed in that other State and either: the income is attributable to a regular base in that other State which the individual has regularly available for the purpose for performing his activities; the individual is present in that other State for 90 days or more in the taxable year; or, net income derived by the individual from residents of that other State exceeds $5,000 (or its equivalent in Barbadian currency) during the taxable year. In the third case, if the net income exceeds $5,000, the entire amount may be taxed by the other State.

The term ''regular base'' is not defined but, in general, is intended to be the same as a permanent establishment. The term also has the same meaning as the term ''fixed base'' used in many other treaties.

This Article is subject to the saving clause of paragraph 3 of Article 1 (General Scope). Thus, for example, a U.S. citizen who is resident in Barbados is subject to U.S. tax on his total income regardless of the provisions of this Article.