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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:

  • (a) in the case of Brazil, a person who, under the laws of Brazil, 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 United Arab Emirates:
    • (i) an individual who has his domicile in the United Arab Emirates and is a national of the United Arab Emirates; and
    • (ii) a company which is incorporated in the United Arab Emirates and has its place of effective management there, provided that the company can give evidence that its capital is beneficially owned, directly or indirectly, exclusively by the United Arab Emirates and/or by a government institution of the United Arab Emirates and/or a political subdivision or local government thereof and/or by individuals being residents of the United Arab Emirates and the company is controlled by the aforementioned residents.

(2) For the purposes of paragraph (1) above, the term "resident of a Contracting State" shall also include:

  • (a) a Contracting State and any political subdivision or local government thereof;
  • (b) a government institution that has been created by the government of one of the Contracting States, or by one of its political subdivisions or local governments, for the fulfillment of public functions and that is beneficially owned exclusively by such government, political subdivision or local government, recognized as such by mutual agreement of the competent authorities of the Contracting States.

(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) in any other case, 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 company is a resident of both Contracting States, such company shall not be treated as a resident of either Contracting State for the purposes of this Convention.