Article 14 - Independent Personal Services

Article 14 deals with income from professional services (lawyers, doctors, architects, engineers, accountants, consultants) and other activities of an independent character. Modern treaties (post-2000) have absorbed Article 14 into Article 7 (Business Profits) following the OECD's 2000 reform, but it survives in many India treaties - especially with developing countries.

Source-State taxation triggers: India-Bulgaria permits the source State to tax independent personal services where the professional has (a) a fixed base regularly available in the source State (akin to a PE), or (b) is present in the source State for more than 90 / 120 / 183 days in the fiscal year (threshold varies by treaty), or (c) remuneration is paid by a resident of the source State (in some older treaties).

Practical compliance: Indian professionals working remotely for foreign clients without a fixed base abroad are taxed only in India. Foreign consultants visiting India for short engagements (under the threshold) escape Indian tax. Where source taxation applies, the foreign-side TDS rate is the treaty rate (often capped at 10-15%), claimed back via Form 67 / 26A.

Modern treaties: If the India-Bulgaria treaty has migrated Article 14 into Article 7 (Business Profits), the PE test alone determines source taxation. Check the current ratified text - older protocols may have preserved the Article 14 distinction.