ARTICLE 4

Resident

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

• (a) In the case of Chile, any person who, under the laws of Chile, is liable to tax therein by reason of his domicile, residence, place of incorporation, or any other criterion of a similar nature;
• (b) In the case of the United Arab Emirates,
  • (i) an individual who is present in the United Arab Emirates for a period or periods in the aggregate of 183 days or more in any twelve-month period commencing or ending in the taxable year concerned; 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 an entity of the United Arab Emirates in accordance with sub-paragraph (k) of paragraph (1) of article 3, and/or by individuals being residents of the United Arab Emirates and the company is controlled by the aforementioned residents.
• (c) In the case of both Contracting States, the term “resident of a Contracting State” shall also include a Contracting State and any political subdivision or local government thereof, as well as a recognised pension fund of that Contracting State.

This term, however, does not include any person who is liable to tax in that Contracting State in respect only of income from sources in that Contracting State.

(2) 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 Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
• (b) if the Contracting 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 Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode;
• (c) if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national;
• (d) if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

(3) Where by reason of the provisions of paragraph (1) a person other than an individual is a resident of both Contracting States, then the competent authorities of the Contracting States shall endeavour to determine by mutual agreement the Contracting State of which that person shall be deemed to be a resident for the purposes of this Convention. In the absence of such mutual agreement, the person shall not be entitled to any reduction or exemption of tax provided by the Convention.

(4) Where under any provisions of this Convention any income derived by a resident of a Contracting State is relieved from tax in the other Contracting State and, under the law of the first-mentioned Contracting State, that resident is subject to tax only on income derived in that Contracting State or by reference to the amount thereof which is remitted to or received in that Contracting State and not by reference to the full amount thereof, then the relief to be allowed under the Convention in the other Contracting State shall apply only to so much of such income as is subject to tax in the first-mentioned Contracting State.

(5) In relation to the investment accounts or funds which are established under the laws of Chile and are not residents of Chile within the meaning of paragraph (1) of this Article, the provisions of the Convention shall not be interpreted to restrict the imposition of tax under the laws of Chile on the remittances made by such investment accounts or funds as well as on the income derived from the redemption or alienation of the quotas held by the participants in such investment accounts or funds.