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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 4

Resident

(1) For the purposes of this Convention, the term "resident of a Contracting State" means any person who, under the law in force in that State, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes that State and any local authority and legal entities of public law of that State or its local authorities. This term however does not include any person who is liable to tax in that State in respect only of income from sources in that State.

(2) Where, by reason of the provisions of paragraph (1), an individual is a resident of both Contracting States, then his or her status shall be determined as follows:

  • (a) this person shall be deemed to be a resident only of the State in which he or she has a permanent home available to him or her; if he or she has a permanent home available to him or her in both States, he or she shall be deemed to be a resident of the State with which his or her personal and economic relations are closer (center of vital interests);
  • (b) if the State in which such person has his or her center of vital interests cannot be determined, or if he or she has not a permanent home available to him or her in either State, he or she shall be deemed to be a resident only of the State in which he or she has an habitual abode;
  • (c) if such person has a habitual abode in both States or in neither of them, he or she shall be deemed to be a resident only of the Contracting State of which he or she is a national;
  • (d) if such person is a national of both States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

(3) Where, under the provisions of paragraph (1), a person other than an individual is a resident of both Contracting States, such person shall be deemed to be a resident of the State in which its place of effective management is situated.

(4) The term "resident of a Contracting State" shall include, where that State is France, any partnership, group of persons or other similar entity:

  • (a) whose place of effective management is in France;
  • (b) who is subject to tax in France and;
  • (c) all of whose unit holders, partners or members are, in application of French tax law, personally liable to tax in respect of their share in the profits of the partnership, or group of persons or other similar entities.

(5) There shall not be considered as a resident of a Contracting State, under the meaning of this Article, a person who, although complying with the definition in paragraphs (1), (2), (3) and (4) above, is only the apparent beneficiary of the income, the such income actually benefiting, either directly or indirectly through other individuals or bodies corporate, a person who can not himself/herself be regarded as a resident of that State for the purposes of this Article.