Common use of Income from Real Property Clause in Contracts

Income from Real Property. 1. Income derived by a resident of a Contracting State from real property may be taxed in the Contracting State in which the real property is situated. 2. The term “real property” shall have the meaning which it has under the law of the Contracting State in which the property is situated. The term shall in any case include: (a) a lease of land or any other interest in or over land; (b) property accessory to real property; (c) livestock and equipment used in agriculture and forestry; (d) usufruct of real property; (e) a right to explore for mineral, oil or gas deposits or other natural resources, and a right to mine those deposits or resources; and (f) a right to receive variable or fixed payments either as consideration for or in respect of the exploitation of, or the right to explore or exploit, mineral, oil or gas deposits, quarries or other places of extraction or exploitation of natural resources. Ships and aircraft shall not be regarded as real property. 3. Any interest or right referred to in paragraph 2 shall be regarded as situated where the land, mineral, oil or gas deposits, quarries or natural resources, as the case may be, are situated or where the exploration may take place. 4. The provisions of paragraph 1 of this Article shall apply to income derived from the direct use, letting, or use in any other form of real property. 5. The provisions of paragraphs 1, 3 and 4 of this Article shall also apply to the income from real property of an enterprise.

Income from Real Property. 1. Income derived by a resident of a Contracting State from real property may be taxed in the Contracting State in which the real property is situated. 2. The In this Article, the term “"real property” shall have ", in relation to one of the Contracting States, has the meaning which it has under the law laws of the Contracting that State in which the property is situated. The term shall in any case includeand includes: (a) a lease of land or and any other interest in or over land; (b) property accessory to real property; (c) livestock and equipment used in agriculture and forestry; (d) usufruct of real property; (e) , whether improved or not, including a right to explore for mineral, oil or gas deposits or other natural resources, and a right to mine those deposits or resources; and (fb) a right to receive variable or fixed payments either as consideration for or in respect of the exploitation of, or the right to explore for or exploit, mineral, oil or gas deposits, quarries or other places of extraction or exploitation of natural resources. Ships ; ships, boats and aircraft shall not be regarded as real property. 3. Any interest or right referred to in paragraph 2 shall be regarded as situated where the land, mineral, oil or gas deposits, quarries or natural resources, as the case may be, are situated or where the exploration may take place. 4. The provisions of paragraph 1 of this Article shall also apply to income derived from real property of an enterprise and to income from real property used for the direct use, letting, or use in any other form performance of real propertyindependent personal services. 5. The provisions of paragraphs 1, 1 and 3 and 4 of this Article shall also apply to the income from real property of an enterpriseenterprise and to income from real property used for the performance of independent personal services.