Artikel 17 Pensions, annuities and social security payments

Subject to the provisions of paragraph 2 of Article 18, pensions, annuities and other similar remuneration, arising in a Contracting State and paid to a resident of the other Contracting State, may be taxed in the first-mentioned State.

Pensions paid and other payments made under the provisions of the social security legislation of a Contracting State to a resident of the other Contracting State, may be taxed in the first-mentioned State.

A pension, an annuity or other similar remuneration shall be deemed to arise in a Contracting State insofar as the contributions or payments associated with that pension or annuity or other similar remuneration, or the entitlements received from them qualified for relief from tax in that State. The transfer of a pension or an annuity or other similar remuneration from a pension fund or an insurance company in a Contracting State to a pension fund or an insurance company in another State shall not restrict in any way the taxing rights of the first-mentioned State under this Article.

The term ‘annuity’ means a stated sum payable periodically at stated times during life or during a specified or ascertainable period of time under an obligation to make payments in return for adequate and full consideration in money or money's worth.

The provisions of this Article shall also apply in case a lump sum payment is made in lieu of a pension, an annuity or other similar remuneration before the date on which the pension, the annuity or other similar remuneration commences.

Whether and to what extent a pension or similar remuneration falls under this Article or under Article 18, is determined by the nature of the past employment, as private or governmental, during which the entitlement to that part of the pension or similar remuneration was built up.