Article 6 - Income from Immovable Property - International Taxation - Income Tax

Article 6 - Income from Immovable Property As per OECD Model Tax Convention Income from Immovable Property Income derived by a resident of a Contracting State from immovable property ( including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State. [ Para 1 of Article 6 ] Income derived from the direct use, letting, or use in any other form of immovable property. [ Para 3 of Article 6 ] Meaning of Immovable Property Immovable property shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. Include property accessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property Exclude rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships and aircraft shall not be regarded as immovable property. [ Para 2 of Article 6 ] Applicable on Enterprises The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise. As per UN Model Tax Convention Article 6 of the United Nations Model Convention reproduces Article 6 of the OECD Model Convention except The UN Model Convention varies from the OECD Model convention in the Following aspect Para 4 of the Article 6 of UN Model Applicable on Enterprises as well as personal use The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.