Agreement Between the Republic of Turkey And the United Arab Emirates for the Avoidance of Double Taxation With Respect to Taxes on Income And on Capital

The Government of The Republic of Turkey
and
The Government of The United Arab Emirates

Desiring to conclude an Agreement for the avoidance of double taxation with respect to taxes on income and on capital,

HAVE AGREED AS FOLLOWS:

Article I – PERSONAL SCOPE

This Agreement shall apply to persons who are residents of one or both of the Contracting States.

Article 2 – TAXES COVERED

1. This Agreement shall apply to taxes on income and on capital imposed on behalf of each Contracting State or of its political subdivisions or local authorities, irrespective of the manner in which they are levied.

2. There shall be regarded as taxes on income and on capital all taxes imposed on total income, on total capital, or on elements of income or of capital, including taxes on gains from the alienation of movable or immovable property, taxes on the total amounts of wages or salaries paid by enterprises, as well as taxes on capital appreciation.

3. The taxes to which the Agreement shall apply are, in particular: a) In the case of Turkey: i) the income tax (Gelir Vergisi); ii) the corporation tax (Kurumlar Vergisi); iii) the levy on behalf of the fund for the support of the defense industry (Savunma Sanayii Destekleme Fonu); iv) the levy on behalf of the fund for the encouragement of social charity and solidarity (Sosyal Yardımlaşma ve Dayanışmayı Teşvik Fonu); and v) the levy on behalf of the fund for business apprentices and for the improvement and enlargement of the vocational and technical training (Mesleki ve Teknik Eğitimi Geliştirme ve Yaygınlaştırma Fonu). (hereinafter referred to as “Turkish Tax”);

   b) In the case of the United Arab Emirates: i) Income tax; and ii) corporation tax. (hereinafter referred to as “United Arab Emirates Tax”).

4. The Agreement shall also apply to any identical or substantially similar taxes which are imposed after the date of signature of the Agreement in addition to, or in place of, the above-mentioned taxes. The competent authorities of the Contracting States shall notify each other of substantial changes which have been made in their respective taxation laws.

Article 3 – GENERAL DEFINITIONS

1. For the purposes of this Agreement, unless the context otherwise requires: a) the term “Turkey” means the Turkish territory, territorial waters, continental shelves and exclusive economic zones delimited by mutual agreement between the parties concerned. b) the term “The United Arab Emirates” means the territory of the United Arab Emirates including its territorial sea and adjacent maritime areas over which United Arab Emirates exercises sovereign rights and jurisdiction; c) the terms “a Contracting State” and “the other Contracting State” mean Turkey or the United Arab Emirates as the context requires; d) the term “tax” means any tax covered by Article 2 of this Agreement; e) the term “person” includes an individual, a company and any other body of persons; f) the term “company” means any body corporate or any entity which is treated as a body corporate for tax purposes; g) the term “registered office” means the legal head office registered under the Turkish Code of Commerce or legal head office registered according to laws in force in the United Arab Emirates; h) the term “national” means: i) any individual possessing the nationality of a Contracting State; ii) any legal person, partnership and association deriving its status as such from the laws in force in a Contracting State; i) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State; j) the term “competent authority” means: i) In Turkey, the Minister of Finance and Customs or his authorized representative; ii) In the United Arab Emirates, the Minister of Finance and Industry or his authorized representative; k) the expression “International traffic” means any transport by a ship, an aircraft or a road vehicle operated by a Turkish or United Arab Emirates enterprise, except when the ship or aircraft or road vehicle is operated solely between places situated in the territory of Turkey or of the United Arab Emirates.

2. As regards the application of this Agreement by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the laws of that State concerning the taxes to which the Agreement applies.

Article 4 – RESIDENT

1. For the purposes of this Agreement, the term “resident of a Contracting State” means any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, registered office (legal head office), place of management or any other criterion of a similar nature.
2. Where by reason of the provisions of paragraph 1 an individual is a resident of both Contracting States, then his status shall be determined as follows: a) he shall be deemed to be a resident of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests); b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident of the Contracting State in which he has an habitual abode; c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident of the State of which he is a national; d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.
3. Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its registered office is situated. However, where such person has its place of effective management in one of the Contracting States and its registered office in the other Contracting State, then the competent authorities of the Contracting States shall determine by mutual agreement the State of which the person shall be deemed to be a resident for the purposes of this Agreement.
4. The political subdivisions or local authorities of Turkey or the United Arab Emirates are deemed respectively as a resident of Turkey or of the United Arab Emirates.

Article 5 – PERMANENT ESTABLISHMENT

1. For the purposes of this Agreement, the term “permanent establishment” means a fixed place of business through which the business of an enterprise is wholly or partly carried on,
2. The term “permanent establishment” includes especially: a) a place of management; b) a branch; c) an office; d) a factory; e) a workshop; f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; g) a building site, a construction or installation project but only if such site or project continue for a period of more than twelve months.
3. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include: a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise; b) maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; f) the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
4. Notwithstanding the provisions of paragraphs 1 and 2, where a person other than an agent of an independent status to whom paragraph 5 applies is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 3 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
5. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
6. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.
7. Where a person who is a resident of one of the Contracting States and who is a partner of a partnership situated in the other Contracting State does not have a permanent establishment in that other State constituted according to the provisions of preceding paragraphs, this partnership shall not constitute a permanent establishment of that person in that other State merely because of this participation.

Article 6 – INCOME FROM MOVABLE PROPERTY

1. 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.
2. The term “immovable property” shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to immovable property, livestock and equipment used in agriculture and forestry, fishing places of every kind, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and 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, boats and aircraft shall not be regarded as immovable property.
3. The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.
4. 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.
   
   

Article 7 – BUSINESS PROFITS

1. The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3. In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4. No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5. Where profits include items of income which are dealt with separately in other Articles of this Agreement, then the provisions of those Articles shall not be affected by the provisions of this Article.

Article 8 – SHIPPING, AIR AND LAND TRANSPORT

1. Profits derived by an enterprise of a Contracting State from the operation of ships, aircraft or road vehicles in international traffic shall be taxable only in that State.

2. With respect to profits derived by Gulf Air Company, the provision of paragraph 1 shall be applied, but only to such part of the profits as corresponds to the share of the United Arab Emirates thereof.

3. For the purposes of this Article, interest arising from deposit account of the enterprise of a Contracting State connected with air transport and shipping activities in international traffic shall be exempted from tax in the other Contracting State.

4. The provisions of paragraph 1 of this Article shall also apply to profits derived from the participation in a pool, a joint business or an international operating agency.

Article 9 – ASSOCIATED ENTERPRISES

1. Where: a) an enterprise of a Contracting State participates directly or indirectly in the management, control or capital of an enterprise of the other Contracting State, or b) the same persons participate directly or indirectly in the management, control or capital of an enterprise of a Contracting State and an enterprise of the other Contracting State, and in either case conditions are made or imposed between the two enterprises in their commercial or financial relations which differ from those which would be made between independent enterprises, then any profits which would, but for those conditions, have accrued to one of the enterprises, but, by reason of those conditions, have not so accrued, may be included in the profits of that enterprise and taxed accordingly.

2. Where a Contracting State includes in the profits of an enterprise of that State—and taxes accordingly—profits on which an enterprise of the other Contracting State has been charged to tax in that other State and the profits so included are by the first-mentioned State claimed to be profits which would have accrued to the enterprise of the first-mentioned State if the conditions made between the two enterprises had been those which would have been made between independent enterprises, then that other State shall make an appropriate adjustment to the amount of the tax charged therein on those profits, where that other State considers the adjustment justified. In determining such adjustment, due regard shall be had to the other provisions of this Agreement and the competent authorities of the Contracting States shall, if necessary, consult each other.

Article 10 – DIVIDENDS

1. Dividends paid by a company which is a resident of a Contracting State to a resident of the other Contracting State may be taxed in that other State.

2. However, such dividends may also be taxed in the Contracting State of which the company paying dividends is a resident, in accordance with the laws of that State, but if the recipient is the beneficial owner of the dividends the tax so charged shall not exceed: a) 5 per cent of the gross amount of the dividends if the recipient is the Government, or a public institution which is wholly owned by the Government or its political subdivisions or local authorities, of the other Contracting State; b) 10 per cent of the gross amount of the dividends if the recipient is a company (excluding partnership) which holds directly at least 25 percent of the capital of the company paying the dividends; c) 12 per cent of the gross amount of the dividends in all other cases.

3. The term “dividends” as used in this Article means income from shares, “jouissance” shares or “jouissance” rights, founders’ shares or other rights, not being debt-claims, participating in profits, as well as income from other corporate rights which is subjected to the same taxation treatment as income from shares by the laws of the State of which the company making the distribution is a resident, and income derived from an investment fund and investment trust.

4. Profits of a company of a Contracting State carrying on business in the other Contracting State through a permanent establishment situated therein may, after having been taxed under Article 7, be taxed on the remaining amount in the Contracting State in which the permanent establishment is situated and in accordance with paragraph 2. Taxation shall be realized only at the time of transfer of the profits abroad and only to such part of the profits transferred.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the dividends, being a resident of a Contracting State, carries on business in the other Contracting State of which the company paying the dividends is a resident, through a permanent establishment situated therein, and the holding in respect of which the dividends are paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

Article 11 – INTEREST

1. Interest arising in a Contracting State and paid to a resident of the other Contracting State may be taxed in that other State.

2. However, such interest may also be taxed in the Contracting State in which it arises, and according to the laws of that State but if the recipient is the beneficial owner of the interest the tax so charged shall not exceed 10 per cent of the gross amount of the interest.

3. Notwithstanding the provisions of paragraph 2, interest arising in: a) the United Arab Emirates and paid to the Government of Turkey or to the Central Bank of Turkey (Türkiye Cumhuriyet Merkez Bankası) shall be exempt from United Arab Emirates tax; b) Turkey and paid to the Central or Local Government of the United Arab Emirates or to the Central Bank of the United Arab Emirates shall be exempt from Turkish tax.

4. The term “interest” as used in this Article means income from government securities, bonds or debentures, whether or not secured by mortgage and whether or not carrying a right to participate in profits, and debt-claims of every kind as well as all other income assimilated to income from money lent by the taxation law of the State in which the income arises.

5. The provisions of paragraphs 1 and 2 shall not apply if the beneficial owner of the interest, being a resident of a Contracting State carries on business in the other Contracting State in which the interest arises through a permanent establishment situated therein, and the debt-claim in respect of which the interest is paid is effectively connected with such permanent establishment. In such case the provisions of Article 7 shall apply.

6. Interest shall be deemed to arise in a Contracting State when the payer is that State itself, a political subdivision, a local authority or a resident of that State. Where, however, the person paying the interest, whether he is a resident of a Contracting State or not, has in a Contracting State a permanent establishment in connection with which the indebtedness on which the interest is paid was incurred and such interest is borne by such permanent establishment, then such interest shall be deemed to arise in the Contracting State in which the permanent establishment is situated.

7. Where, by reason of a special relationship between the payer and the beneficial owner or between both of them and some other person, the amount of the interest, having regard to the debt-claim for which it is paid, exceeds the amount which would have been agreed upon by the payer and the beneficial owner in the absence of such relationship, the provisions of this Article shall apply only to the last mentioned amount. In such case the excess part of the payments shall remain taxable according to the laws of each Contracting State, due regard being had to the other provisions of this Agreement.

Article 12 – Royalties

1. Taxation of Royalties: Royalties paid by a resident of one contracting state to a resident of the other may be taxed in the recipient’s state.

2. Tax Rates: The state where the royalties arise can also tax them, but if the recipient is the beneficial owner, the tax cannot exceed 10% of the gross amount of royalties.

3. Definition of Royalties: Royalties include payments for the use of copyrights, patents, trademarks, designs, industrial processes, and similar rights, excluding payments related to mining, quarries, or natural resources exploitation.

4. Permanent Establishment: If the beneficial owner of royalties carries on business through a permanent establishment in the state where the royalties arise, and the royalties are connected with that establishment, Article 7 (Business Profits) applies instead of Article 12.

5. Deemed Source of Royalties: Royalties are deemed to arise in a contracting state if the payer is the state itself, a political subdivision, a local authority, or a resident of that state. If there’s a permanent establishment connected to the royalties, they’re deemed to arise where the establishment is located.

6. Special Relationships: If there’s a special relationship influencing the royalty amount exceeding what would be agreed upon at arm’s length, taxation applies only to the reasonable amount. Any excess remains taxable according to each contracting state’s laws.

Article 13 – Capital Gains

1. Taxation of Gains: Gains from the sale of immovable property situated in one contracting state may be taxed in that state. Gains from movable property related to business property of a permanent establishment or movable property used for independent personal services may also be taxed in the other contracting state.

2. International Transport: Gains from ships, aircraft, or road vehicles operated in international traffic, or movable property used in their operation, are taxed only in the state where the enterprise’s registered office is located.

3. General Rule: Gains from the sale of any other property not covered specifically in previous paragraphs are taxed in the contracting state where the seller is resident. However, if the property was situated in the other contracting state and the holding period does not exceed one year, taxation may occur in that state.

Article 14 – Independent Personal Services

2. Professional Services: Includes independent scientific, literary, artistic, educational, teaching, medical, legal, engineering, architectural, dental, and accounting activities.
   
   

Article 15 – Dependent Personal Services

1. Salaries, wages, and similar remuneration derived by a resident of a Contracting State in respect of employment are taxable only in that State, unless the employment is exercised in the other Contracting State. If exercised there, the remuneration may be taxed in that other State.

2. However, remuneration from employment exercised in the other Contracting State is taxable only in the first-mentioned State if:

   • The individual is present in the other State for 183 days or less in aggregate in the calendar year,
   • The remuneration is paid by or on behalf of an employer not resident in the other State,
   • The remuneration is not borne by a permanent establishment or fixed base which the employer has in the other State.

3. Remuneration from employment exercised aboard a ship, aircraft, or road vehicle in international traffic may be taxed in the Contracting State where the enterprise’s registered office is situated.

Article 16 – Directors’ Fees

• Directors’ fees and similar payments received by a resident of a Contracting State in their capacity as a board member of a company resident in the other Contracting State may be taxed in that other State.

Article 17 – Artistes and Athletes

1. Income derived by a resident of a Contracting State as an entertainer (theatre, motion picture, radio, television artiste, musician) or as an athlete from personal activities exercised in the other Contracting State may be taxed in that other State.

2. Income from such activities, if not accruing directly to the entertainer/athlete but to another person, may still be taxed in the Contracting State where the activities were performed.

3. Exceptions apply if activities are supported by public funds of the other Contracting State, or under a cultural agreement between the Contracting States.

Article 18 – Pensions

1. Pensions and similar remuneration paid to a resident of a Contracting State for past employment are taxable only in that State. This also includes life annuities.

2. Pensions, life annuities, and payments for personal accident insurance from a Contracting State or its subdivisions may be taxed only in that State.

Article 19 – Government Service

1. Remuneration, including pensions, paid by a Contracting State or its political subdivision or local authority to any individual for services rendered in the discharge of governmental functions shall be taxable in that State.

2. Provisions of Articles 16, 18, and 18 apply to remuneration and pensions related to services rendered in connection with a business carried on by a Contracting State or its subdivisions.

Article 20 – Teachers and Students

1. Payments received by a student or business apprentice from a Contracting State, present in the other Contracting State solely for education or training purposes, are not taxable in that other State, provided these payments arise from sources outside that other State.

2. Similarly, remuneration received by a teacher or instructor from a Contracting State, present in the other Contracting State for teaching or scientific research purposes not exceeding two years, is exempt from tax in that other State if the payments arise from sources outside that other State.

3. Remuneration derived by a student or trainee from employment in the other Contracting State, for practical experience related to their education or formation, not exceeding 183 days in a calendar year, is not taxable in that other State.

Article 21 – Other Income

1. Income of a resident of a Contracting State, wherever arising, not covered in previous Articles of the Agreement, shall be taxable only in that State.

2. Income arising outside the two Contracting States shall be taxable only in the Contracting State of which the recipient is a resident.

Article 22 – Capital

1. Capital represented by immovable property situated in the other Contracting State, as referred to in Article 6, shall be taxable in that other State.

2. Capital represented by movable property forming part of the business property of a permanent establishment in the other Contracting State, or movable property related to a fixed base available to a resident of a Contracting State in the other State for performing independent personal services, may be taxed in that other State.

3. Capital represented by ships, aircraft, or road vehicles operated in international traffic, and movable property related to their operation, shall be taxable only in the Contracting State where the enterprise’s registered office is situated.

4. All other elements of capital of a resident of a Contracting State shall be taxable only in that State.

Article 23 – Elimination of Double Taxation

1. Double taxation for residents of Turkey shall be eliminated by allowing a deduction from Turkish tax, equal to the tax paid in the United Arab Emirates on income or capital.

2. The United Arab Emirates will eliminate double taxation according to its legislation, considering the general principle of avoiding double taxation.

Article 24 – Non-Discrimination

1. Nationals of a Contracting State shall not face taxation or requirements more burdensome than those imposed on nationals of the other State in similar circumstances.

2. Taxation on a permanent establishment in the other Contracting State shall not be less favorably levied than on enterprises of that State carrying out the same activities.

3. Enterprises owned or controlled by residents of the other Contracting State shall not face taxation or requirements more burdensome than those applied to similar enterprises of the first-mentioned State.

4. These provisions do not require a Contracting State to grant personal allowances, reliefs, or reductions to residents of the other State based on civil status or family responsibilities, which it grants to its own residents.

Article 25 – Exchange of Information

• The competent authorities of the Contracting States shall exchange necessary information to enforce the provisions of this Agreement or their domestic tax laws related to taxes covered by the Agreement. This exchange of information must align with the Agreement’s principles. Information received by a Contracting State must be treated confidentially, similar to how domestic information is handled under its own laws. It can only be disclosed to specific persons or authorities involved in tax assessment, collection, enforcement, prosecution, or appeals related to the covered taxes. This information may be disclosed in public court proceedings or judicial decisions.

• Paragraph 1 does not impose on a Contracting State the obligation to: a) Undertake administrative measures that contradict its own or the other Contracting State’s laws and administrative practices. b) Provide information that is not obtainable under its laws or normal administrative procedures. c) Disclose information that would reveal trade, business, industrial, commercial, or professional secrets or processes, or information that would undermine public order.

Article 26 – Mutual Agreement Procedure

1. Where a resident of a Contracting State believes that the actions of one or both Contracting States result in or will result in taxation not in accordance with this Agreement, the resident may present their case to the competent authority of:

   • The Contracting State of which they are a resident, or
   • If applicable under Article 24(1), the Contracting State of which they are a national.

2. The competent authority shall endeavor to resolve the case by mutual agreement with the competent authority of the other Contracting State, if it finds the objection justified and cannot reach a satisfactory solution itself, aiming to avoid taxation contrary to the Agreement.

3. The competent authorities of the Contracting States shall also attempt to resolve any difficulties or doubts about the interpretation or application of the Agreement by mutual agreement. They may consult each other to eliminate double taxation in situations not covered by the Agreement.

4. The competent authorities may directly communicate to reach an agreement under the preceding paragraphs. If necessary to facilitate agreement, oral exchanges of opinions may occur through a Commission composed of representatives from both competent authorities.

Article 27 – Diplomatic Agents and Consular Officers

Nothing in this Agreement shall affect the fiscal privileges of diplomatic agents or consular officers under general international law or special agreements.

Article 28 – Entry into Force

1. Each Contracting State shall notify the other when it has completed the constitutional procedures required for the Agreement to take effect. The Agreement enters into force on the date when the latter of these notifications is received.

2. The provisions of this Agreement apply to taxes for every taxable year starting on or after January 1 of the year following the entry into force of this Agreement.

3. Notwithstanding paragraph 2, Article 8 of this Agreement applies to taxes based on income from air transport activities after January 1, 1988. Any tax already collected for the corresponding period starting from this date shall be refunded.

Article 29 – Termination

1. This Agreement shall remain in force until terminated by either Contracting State. Termination may be initiated through diplomatic channels, with notice of termination given at least six months before the end of any calendar year.

2. Upon termination, the Agreement ceases to have effect in both States for taxes pertaining to every taxable year beginning on or after January 1 of the year following the notice of termination.

IN WITNESS WHEREOF, the undersigned plenipotentiaries have signed the present Agreement and affixed their seals thereto.

“Done in duplicate at Abu Dhabi on the 29th day of January 1993, in the Turkish, Arabic, and English languages, all texts being equally authentic. In case of divergence between the texts, the English text shall prevail.”

Income derived by a resident of a Contracting State in respect of professional services or other activities of an independent character, shall be taxable only in that State unless he has a fixed base regularly available to him in the other Contracting State for the purpose of performing his activities. If he has such a fixed base, the income may be taxed in the other State hut only so much of it as is attributable to that fixed base.