Income from independent personal services
Income from dependent personal services
Government services
Pensions
Alimonies
I receive payment from independent personal services. In which Contracting State do I have to pay taxes?
Independent personal services are regulated in Article 14 of the Convention. Independent personal service is defined as entrepreneurship on the basis of a defined contract (e.g., a contract for work and services). A personal service is rendered independently if there is no employment status involved. The self-employed person works independently, not bound by directives, and at his or her own risk. In general, the right to taxation lies with a person's State of Residence. According to Article 14, income from independent personal services rendered by a resident of Austria in Canada, are subject to taxation in Canada only if they are connected to a permanent establishment (fixed place of business; e.g., garage, office, or similar) in Canada. In this case, all income connected with the permanent establishment in Canada is subject to taxation in Canada. This income is also subject to taxation in Austria, but Canadian taxes are deducted from Austrian taxes to avoid double taxation.
I receive payment from dependent personal services. In which Contracting State do I have to pay taxes?
Exception: As an exception, the right to taxation only lies with the Contracting State of residence under certain conditions:
- The natural person does not stay any longer than 183 days (within a 12-month period) in the other Contracting State (where the service is rendered), and
- the remuneration is paid by, or on behalf of, an employer not a resident of the Contracting State in which the service is rendered, and
- the payment is not derived from a place of business or permanent establishment of the employer in the other Contracting State (in which the service is rendered).
Where do I have to pay taxes for my income from public services?
According to Article 19 of the Convention, the basic rule concerning wages, salaries, and similar remuneration paid from or out of a public fund of a Contracting State to a public servant is that they are subject to taxation only in this Contracting State. If an officiating employee is a resident of the other Contracting State, his/her income is taxable in that other Contracting State if services are rendered in that other Contracting State, and the government employee did not become a resident of the State solely for the purpose of performing the service. The basic rule of Article 18 of the Convention says, in addition, that the right for taxation of pensions or annuities lies with the Contracting State in which the service was rendered.
I am an Austrian citizen and receive my pension/annuity from Austria/Canada. Where do I have to pay taxes?
According to Article 18 of the Convention, pensions and annuities paid by contracting state A may only be taxed in contracting state A. This means that pensions and annuities are taxable in the Contracting State in which they are based. Further information for Austrian recipients of pensions/annuities living abroad is provided by the Austrian Social Security Administration (Pensionsversicherungsanstalt, PVA) for download.
In which country do I have to pay taxes for the alimonies I pay/receive?
Alimonies, like pensions, are regulated in Article 18 of the Conventions. They are defined as periodic payments made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support. Alimonies are taxable in the Contracting State in which the person receiving the support resides.
Relevant Links:
Austrian National Pension Administration (PVA, in German): http://www.pensionsversicherungsanstalt.at
Further information for retirees living abroad, as well as fiscal treatment of pensions (in German):
http://www.pensionsversicherung.at/mediaDB/Information%20Englisch.pdf
