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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 5

Resident

(1) For the purposes of this Convention, the term "resident of a Contracting State" means:

  • (a) in the case of the people's Republic of Bangladesh, any person who, under the laws of that State, is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management, or any other criterion of a similar nature;
  • (b) in the case of the UAE, an individual who under the laws of the UAE or of any political subdivision or local government thereof is a national, any person other than an individual that is incorporated or otherwise recognized under the laws of the UAE or any political subdivision or local government thereof.

(2) For the purposes of paragraph 1, a resident of a Contracting State includes:

  • (a) The Government of that Contracting State and any political sub-division or local Government thereof;
  • (b) any person other than an individual owned or controlled directly or indirectly by that State or any political subdivision or local government thereof;
  • (c) a qualified government entity which means:
    • (i) in case of the UAE, The Government of Abu Dhabi, Government of Dubai, Government of Sharjah, Government of Ajman, Government of Fujairah, Government of Ras Al Khima and the Government Om Al Quain; or
    • Central bank of a Contracting State and any person, agency, institution, authority, fund, enterprise, organization, or other entity owned or controlled directly or indirectly by a contracting State or any political subdivision or local government thereof;
    • (ii) in the case of Bangladesh, Government of the People's Republic of Bangladesh, local government, Bangladesh Bank, nationalized financial institutions and sector corporations;
  • (d) a pension fund;
  • (e) charities or religious, educational and cultural organizations.

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

  • (a) he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both States, he shall be deemed to be a resident only of the State with which his personal and economic relations are closer (centre of vital interests);
  • (b) if the State in which he has his centre of vital interests cannot be determined, or if he has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
  • (c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the State of which he is a national;
  • (d) if he 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.

(4) Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.