ARTICLE 18 　　Pensions, Social Security, Annuities,Alimony, and Child Support 　　1. Subject to the provisions of Article 19 (Government Service), pensions and other similar remuneration derived and beneficially owned by a resident of a Contracting State in consideration of past employment, whether paid periodically or as a single sum, shall be taxable only in that State, but the amount of any such pension or remuneration that would be excluded from taxable income in the other Contracting State if the recipient were a resident thereof shall be exempt from taxation in the first-mentioned State. 　　2. Notwithstanding the provisions of paragraph 1, payments made by a Contracting State under the provisions of the social security or similar legislation of that State to a resident of the other Contracting State or to a citizen of the United States shall be taxable only in the firstmentioned State. 　　3. Annuities derived and beneficially owned by a resident of a Contracting State shall be taxable only in that State. The term "annuities" as used in this paragraph means a stated sum (other than a pension) paid periodically at stated times during a specified number of years, under an obligation to make the payments in return for adequate and full consideration (other than services rendered). 　　4. Alimony paid by a resident of a Contracting State, and deductible therein, to a resident of the other Contracting State shall be taxable only in that other State. The term "alimony" as used in this paragraph means periodic payments made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, which payments are taxable to the recipient under the laws of the State of which he is a resident. 　　5. Periodic payments, not dealt with in paragraph 4, for the support of a minor child made pursuant to a written separation agreement or a decree of divorce, separate maintenance, or compulsory support, paid by a resident of a Contracting State to a resident of the other Contracting State, shall not be taxable in that other State. ARTICLE 19 Government Service 　　1. Notwithstanding the provisions of Articles 15 (Dependent Personal Services) and 17 (Artistes and Sportsmen): 　　a) remuneration, other than a pension, paid by, or out of the public funds of a Contracting State or a political subdivision or a local authority thereof to an individual in respect of dependent personal services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature shall, subject to the provisions of subparagraph b), be taxable only in that State; 　　b) such remuneration, however, shall be taxable only in the other Contracting State if the services are rendered in that State and the individual is a resident of that State who: 　　(i) is a national of that State; or 　　(ii) did not become a resident of that State solely for the purpose of rendering the services. 　　2. Subject to the provisions of paragraph 2 of Article 18 (Pensions, Social Security, Annuities, Alimony, and Child Support): 　　a) any pension paid by, or out of the public funds of a Contracting State or a political subdivision or a local authority thereof to an individual in respect of services rendered to that State or subdivision or authority in the discharge of functions of a governmental nature, shall, subject to the provisions of subparagraph b), be taxable only in that State; 　　b) such pension, however, shall be taxable only in the other Contracting State if　the individual is a resident of, and a national of, that State. 　　　　　　　　　　　　　　ARTICLE 20 　　　　　　　　Students, Trainees and Researchers 1. a) An individual who is a resident of a Contracting State at the beginning of his visit to the other Contracting State and who is temporarily present in that other Contracting State for the primary purpose of: 　　(i) studying at a university or other accredited educational institution in that other Contracting State; or 　　(ii) securing training required to qualify him to practice a profession or　professional speciality; or 　　(iii) studying or doing research as a recipient of a grant, allowance, or award from a governmental, religious, charitable, scientific, literary, or educational organization; shall be exempt from tax by that other Contracting State with respect to the amounts described in subparagraph b) of this paragraph for a period not exceeding five years from the date of his arrival in that other Contracting State. 　　b) The amounts referred to in subparagraph a) of this paragraph are: 　　(i) payments from abroad, other than compensation for personal services,for the purpose of his maintenance, education, study, research, or training; 　　(ii) the grant, allowance, or award; and 　　(iii) income from personal services performed in that other Contracting State in an aggregate amount not in excess of five thousand United States dollars ($5,000) or its equivalent in Estonian kroons for any taxable year. 　　2. An individual who is a resident of a Contracting State at the beginning of his visit to the other Contracting State and who is temporarily present in that other Contracting State as an employee of, or under contract with, a resident of the first-mentioned Contracting State, for the primary purpose of: 　　a) acquiring technical, professional, or business experience from a person other than that resident of the first-mentioned Contracting State, or 　　b) studying at a university or other accredited educational institution in that other Contracting State,shall be exempt from tax by that other Contracting State for a period of 12 consecutive months with respect to his income from personal services in an aggregate amount not in excess of eight thousand United States dollars ($8,000) or its equivalent in Estonian kroons. 　　3. An individual who is a resident of one of the Contracting States at the time he becomes　temporarily present in the other Contracting State and who is temporarily present in the other　Contracting State for a period not exceeding one year, as a participant in a program sponsored by the Government of that other Contracting State, for the primary purpose of training, research, or study, shall be exempt from tax by that other Contracting State with respect to his income from personal services in respect of such training, research, or study performed in that other Contracting State in an aggregate amount not in excess of ten thousand United States dollars ($10,000) or its equivalent in Estonian kroons. 　　4. This Article shall not apply to income from research if such research is undertaken not in the public interest but primarily for the private benefit of a specific person or persons. ARTICLE 21 　　　　　　　　　　Other Income 　　1. Items of income beneficially owned by a resident of a Contracting State, wherever arising, not dealt with in the foregoing Articles of this Convention shall be taxable only in that State. 　　2. The provisions of paragraph 1 shall not apply to income, other than income from immovable (real) property as defined in paragraph 2 of Article 6 (Income from Immovable (Real) Property), if the beneficial owner of the income, being a resident of a Contracting State, carries on business in the other Contracting State through a permanent establishment situated therein, or performs in that other State independent personal services from a fixed base situated therein, and the income is attributable to such permanent establishment or fixed base. In such case the provisions of Article 7 (Business Profits) or Article 14 (Independent Personal Services), as the case may be, shall apply. 　　3. Notwithstanding the provisions of paragraphs 1 and 2, items of income of a resident of a Contracting State not dealt with in the foregoing Articles of this Convention and arising in the other Contracting State may also be taxed in that other State. ARTICLE 22 Limitation on Benefits 　　1. A resident of a Contracting State shall be entitled to all the benefits of this Convention only if it is a "qualified resident" as defined in this Article. 　　2. A resident of a Contracting State is a qualified resident for a taxable year only if it is either: a) an individual; 　　b) a Contracting State, a political subdivision or a local authority thereof, or an　agency or instrumentality of such State, subdivision or authority; 　　c) a company, if: 　　(i) on at least half the days of the taxable year the beneficial owners of at least 50 percent of each class of the company's shares are qualified residents by reason of subparagraphs a), b), e), or f) of this paragraph, or U.S. citizens, provided that in the case of indirect ownership, each intermediate owner is a person entitled to benefits of the Convention under this paragraph; and 　　(ii) amounts paid or accrued by the company during its taxable year: 　　A) to persons that are neither qualified residents nor U.S. citizens, and 　　B) that are deductible for income tax purposes in the company's State of residence (but not including arm's length payments in the ordinary course of business for services or tangible property), do not exceed 50 percent of the gross income of the company for that year; 　　d) a trust or estate, if the ownership of its beneficial interests satisfies the requirement of subparagraph c)i) and its payments to persons who are not qualified residents or U.S. citizens satisfy the requirement of subparagraph c)ii); 　　e) a person, if: 　　i) beneficial interests representing at least 50 percent of the value of each class of interests in that person are substantially and regularly traded on a recognized stock exchange; or 　　ii) the direct or indirect owners of at least 50 percent of each class of interests in that person are persons entitled to benefits under clause i), provided that in the case of indirect ownership, each intermediate owner is a person entitled to benefits of the Convention under this paragraph; 　　f) a person described in subparagraph 3 b) of Article 4 (Resident) provided that more than half of the beneficiaries, members or participants, if any, in such persons are qualified residents; or 　　g) a United States Regulated Investment Company, or a similar entity in Estonia as may be agreed by the competent authorities of the Contracting States. 　　3. a) A resident of a Contracting State that is not a qualified resident shall be entitled　to the benefits of this Convention with respect to an item of income derived from the　other State, if: 　　(i) the resident is engaged in the active conduct of a trade or business in the first-mentioned State, 　　(ii) the income is connected with or incidental to the trade or business, and 　　(iii) the trade or business is substantial in relation to the activity in the　other State generating the income. 　　b) For purposes of this paragraph, the business of making or managing investments will not be considered an active trade or business unless the activity is banking, insurance or securities activity conducted by a bank, insurance company or registered securities dealer. 　　c) Whether a trade or business is substantial for purposes of this paragraph will be determined based on all facts and circumstances. In any case, however, a trade or business will be deemed substantial if, for the preceding taxable year, or for the average of the three preceding taxable years, the asset value, the gross income, and the payroll expense that are related to the trade or business in the first-mentioned State equal at least 7.5 percent of the resident`s (and any related parties`) proportionate share of the asset value, gross income and payroll expense, respectively, that are related to the activity that generated the income in the other State, and the average of the three ratios exceeds 10 percent. 　　d) Income is derived in connection with a trade or business if the activity in the other State generating the income is a line of business that forms a part of or is complementary to the trade or business. Income is incidental to a trade or business if it facilitates the conduct of the trade or business in the other State. 　　4. A resident of a Contracting State that is not a qualified resident pursuant to the provisions　of paragraph 2 may, nevertheless, be granted benefits of the Convention with respect to income arising in the other Contracting State if the competent authority of that other Contracting State so determines. 　　5. For the purposes of this Article, the term "recognized stock exchange" means: 　　a) the NASDAQ System owned by the National Association of Securities Dealers, Inc. and any stock exchange registered with the U.S. Securities and Exchange Commission as a national securities exchange under the U.S. Securities Exchange Act of 1934; 　　b) the Tallinn Stock Exchange (Tallinna V??rtpaberib?rs); and 　　c) any other stock exchange agreed upon by the competent authorities of the Contracting States. 　　6. The competent authorities of the Contracting States shall consult together with a view to developing a commonly agreed application of the provisions of this Article, including the publication of public guidance. The competent authorities shall, in accordance with the provisions of Article 26 (Exchange of Information and Administrative Assistance), exchange such information as is necessary for carrying out the provisions of this Article. ARTICLE 23 Relief from Double Taxation 　　1. In accordance with the provisions and subject to the limitations of the law of the United States (as it may be amended from time to time without changing the general principle hereof), the United States shall allow to a resident or citizen of the United States as a credit against the United States tax on income: 　　a) the Estonian tax paid by or on behalf of such resident or citizen; and 　　b) in the case of a United States company owning at least 10 percent of the voting stock of a company which is a resident of Estonia and from which the United States company receives dividends, the Estonian tax paid by or on behalf of the distributing company with respect to the profits out of which the dividends are paid. 　　2. In Estonia, double taxation shall be avoided as follows: 　　a) where a resident of Estonia derives income which, in accordance with this Convention, may be taxed in the United States, unless a more favorable treatment is provided in its domestic law, Estonia shall allow as a deduction from the tax on the income of that resident, an amount equal to the income tax paid thereon in the United States (other than any such tax imposed by reason of citizenship of the United States); such deduction shall not, however, exceed that part of the income tax in Estonia, as computed before the deduction is given, which is attributable to the income which may be taxed in the United States; 　　b) For the purposes of subparagraph a), where a company that is a resident of Estonia receives a dividend from a company that is a resident of the United States in which it owns at least 10 percent of its shares having full voting rights, the tax paid in the United States shall include not only the tax paid on the dividend, but also the appropriate portion of the tax paid on the underlying profits of the company out of which the dividend was paid. 　　3. For the purposes of allowing relief from double taxation pursuant to this Article, and subject to such source rules in the domestic laws of the Contracting States as apply for purposes of limiting the foreign tax credit, income derived by a resident of a Contracting State which may be taxed in the other Contracting State in accordance with this Convention (other than solely by reason of citizenship in accordance with paragraph 4 of Article 1 (General Scope)) shall be deemed to arise in that other State. ARTICLE 24 Nondiscrimination 　　1. Nationals of a Contracting State shall not be subjected in the other Contracting State to any taxation or any requirement connected therewith, which is other or more burdensome than the taxation and connected requirements to which nationals of that other State in the same circumstances, in particular with respect to residence, are or may be subjected. This provision shall apply to persons who are not residents of one or both of the Contracting States. However, for the purposes of United States taxation, United States nationals who are subject to tax on a worldwide basis are not in the same circumstances as nationals of Estonia who are not residents of the United States. 　　2. The taxation on a permanent establishment which an enterprise of a Contracting State, or a fixed base which an individual who is a resident of a Contracting State, has in the other Contracting State shall not be less favorably levied in that other State than the taxation levied on enterprises or individuals who are residents of that other State carrying on the same activities. 　　The provisions of this paragraph shall not be construed as obliging a Contracting State to grant to residents of the other Contracting State any personal allowances, reliefs and reductions for taxation purposes on account of civil status or family responsibilities that it grants to its own　residents. 　　3. Except where the provisions of paragraph 1 of Article 9 (Associated Enterprises), paragraph 7 of Article 11 (Interest), or paragraph 5 of Article 12 (Royalties) apply, interest, royalties and other disbursements paid by a resident of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable profits of the firstmentioned resident, be deductible under the same conditions as if they had been paid to a resident of the first-mentioned State. Similarly, any debts of a resident of a Contracting State to a resident of the other Contracting State shall, for the purpose of determining the taxable capital of the firstmentioned resident, be deductible under the same conditions as if they had been contracted to a resident of the first-mentioned State. 　　4. Enterprises of a Contracting State, the capital of which is wholly or partly owned or controlled, directly or indirectly, by one or more residents of the other Contracting State, shall not be subjected in the first-mentioned State to any taxation or any requirement connected therewith which is other or more burdensome than the taxation and connected requirements to which other similar enterprises of the first-mentioned State are or may be subjected. 　　5. Nothing in this Article shall be construed as preventing either Contracting State from imposing a tax as described in paragraph 5 of Article 10 (Dividends). 　　6. The provisions of this Article shall, notwithstanding the provisions of Article 2 (Taxes Covered), apply to taxes of every kind and description imposed by a Contracting State or a political subdivision or local authority thereof. ARTICLE 25 Mutual Agreement Procedure 　　1. Where a person considers that the actions of one or both of the Contracting States result or will result for him in taxation not in accordance with the provisions of this Convention, he may, irrespective of the remedies provided by the domestic law of those States, present his case to the competent authority of either Contracting State. The case must be presented within three years from the first notification of the action resulting in taxation not in accordance with the provisions of the Convention. 　　2. The competent authority shall endeavor, if the objection appears to it to be justified and if it is not itself able to arrive at a satisfactory solution, to resolve the case by mutual agreement with the competent authority of the other Contracting State, with a view to the avoidance of taxation which is not in accordance with the Convention. Any agreement reached shall be implemented notwithstanding any time limits or other procedural limitations in the domestic law of the Contracting States. 　　3. The competent authorities of the Contracting States shall endeavor to resolve by mutual agreement any difficulties or doubts arising as to the interpretation or application of the Convention. In particular the competent authorities of the Contracting States may agree: a) to the same attribution of income, deductions, credits, or allowances of an enterprise of a Contracting State to its permanent establishment situated in the other Contracting State; 　　b) to the same allocation of income, deductions, credits, or allowances between　persons; 　　c) to the same characterization of particular items of income; 　　d) to the same characterization of persons; 　　e) to the same application of source rules with respect to particular items of　income; 　　f) to a common meaning of a term; 　　g) to increases in any specific dollar amounts referred to in the Convention to reflect economic or monetary developments; 　　h) to advance pricing arrangements; and 　　i) to the application of the provisions of domestic law regarding penalties, fines, and interest in a manner consistent with the purposes of the Convention. They may also consult together for the elimination of double taxation in cases not provided for in the Convention. 　　4. The competent authorities of the Contracting States may communicate with each other directly for the purpose of reaching an agreement in the sense of the preceding paragraphs. ARTICLE 26 Exchange of Information and Administrative Assistance 　　1. The competent authorities of the Contracting States shall exchange such information as is relevant for carrying out the provisions of this Convention or of the domestic laws of the Contracting States concerning taxes covered by the Convention insofar as the taxation thereunder is not contrary to the Convention, including the assessment of, collection of, the enforcement or prosecution in respect of or the determination of appeals in relation to the taxes covered by the Convention. The exchange of information is not restricted by Article 1 (General Scope). Any information received by a Contracting State shall be treated as secret in the same manner as information obtained under the domestic laws of that State and shall be disclosed only to persons or authorities (including courts and administrative bodies) involved in the assessment, collection or administration of, the enforcement or prosecution in respect of, or the determination of appeals in relation to, the taxes covered by the Convention or the oversight of the above. Such persons or authorities shall use the information only for such purposes. They may disclose the information in public court proceedings or in judicial decisions. 　　2. In no case shall the provisions of paragraph 1 be construed so as to impose on a Contracting State the obligation: 　　a) to carry out administrative measures at variance with the laws and administrative practice of that or of the other Contracting State; 　　b) to supply information which is not obtainable under the laws or in the normal course of the administration of that or of the other Contracting State; 　　c) to supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process or information, the disclosure of which would be contrary to public policy (ordre public). 　　3. Notwithstanding paragraph 2, laws or practices of the requested State pertaining to the disclosure of information by financial institutions, nominees or persons acting in an agency or fiduciary capacity, or respecting ownership of debt instruments or interests in a person shall not affect the authority of the requested State. The competent authorities shall have the authority to obtain and provide information notwithstanding such disclosure laws and practices. If information is requested by a Contracting State in accordance with this Article, the other Contracting State shall obtain the information to which the request relates in the same manner and to the same extent as if the tax of the first-mentioned State were the tax of that other State and were being imposed by that other State. If specifically requested by the competent authority of a Contracting State, the competent authority of the other Contracting State shall provide information under this Article in the form of depositions of witnesses and authenticated copies of unedited original documents (including books, papers, statements, records, accounts, and writings), to the same extent such depositions and documents can be obtained under the laws and administrative practices of that other State with respect to its own taxes. 　　4. Each of the Contracting States shall endeavor to collect on behalf of the other Contracting　State such amounts as may be necessary to ensure that relief granted by the Convention from taxation imposed by that other State does not inure to the benefit of persons not entitled thereto. 　　5. Paragraph 4 shall not impose upon either of the Contracting States the obligation to carry out administrative measures which are of a different nature from those used in the collection of its own taxes, or which would be contrary to its sovereignty, security, or public policy. 　　6. For the purposes of this Article, the Convention shall apply, notwithstanding the provisions of Article 2 (Taxes Covered), to taxes of every kind imposed by a Contracting State. 　　7. The competent authority of the requested State shall allow representatives of the applicant State to enter the requested State to interview individuals and examine books and records with the consent of the persons contacted and the competent authority of the requested State. ARTICLE 27 Members of Diplomatic Missions and Consular Posts 　　Nothing in this Convention shall affect the fiscal privileges of members of diplomatic missions or consular posts under the general rules of international law or under the provisions of special agreements. ARTICLE 28 Entry into Force 　　1. The Governments of the Contracting States shall notify each other through diplomatic channels when the constitutional requirements for the entry into force of the Convention have been complied with. 　　2. The Convention shall enter into force on the date of the later of the notifications referred to in paragraph 1, and its provisions shall have effect in both Contracting States: 　　a) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year next following the year in which the Convention enters into force; 　　b) in respect of other taxes on income, for taxable years beginning on or after the first day of January of the calendar year next following the year in which the Convention enters into force. 　　3. The appropriate authorities of the Contracting States shall consult within a five-year period from the date on which this Convention enters into force with respect to the application of the Convention, including the negotiations of an amendment to the Convention by mean of a protocol (if appropriate), to income derived from new technologies (such as payments received for transmission by satellite, cable, optic fibre or similar technology). ARTICLE 29 Termination 　　This Convention shall remain in force until terminated by a Contracting State. Either Contracting State may terminate the Convention by giving written notice of termination, through diplomatic channels, at least 6 months before the end of any calendar year. In such event, the Convention shall cease to have effect in both Contracting States: 　　a) in respect of taxes withheld at source, for amounts paid or credited on or after the first day of January of the calendar year next following the year in which the notice has been given; 　　b) in respect of other taxes on income, for taxable years beginning on or after the first day of January of the calendar year next following the year in which the notice has been given. 　　IN WITNESS WHEREOF, the undersigned, being duly authorized thereto, have signed this　Convention. 　　DONE at Washington in duplicate, in the English and Estonian languages, both texts being equally authentic, this 15th day of January, 1998. FOR THE UNITED STATES FOR THE REPUBLIC OF AMERICA: OF ESTONIA: (s) Robert E. Rubin (s) Lennart Meri