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ARTICLE 4

Resident

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

  • (a) In the case of the Republic of Costa Rica, means any person who, under the laws of Costa Rica is liable to lax therein by reason of the person's domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes Costa Rica. This term, however, does not include any person who is liable to tax in Costa Rica in respect only of income from sources in that State or capital gains situated therein.
  • (b) in the case of the United Arab Emirates:
    • (i) an individual who under the laws of the United Arab Emirates or of any political subdivision or local government thereof is a national;
    • (ii) any person other than an individual that is incorporated or otherwise recognized under the laws of the United Arab Emirates or any political subdivision or local government thereof;
    • (iii) for the purposes of this Article the term “resident” also includes:
      • (a) the Government of that Contracting State and any political subdivision or local government or local authority thereof;
      • (b) any person other than an individual wholly owned directly or indirectly by a Contracting State or any political subdivision or local government or local authority thereof;
      • (c) a qualified government entity;
      • (d) pension funds; and
      • (e) charities or religious, educational and cultural organizations.

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

  • (a) such individual shall be deemed to be a resident only of the State in which the individual has a permanent home available; if the individual has a permanent home available in both States, the individual shall be deemed to be a resident only of the State with which the individual's personal and economic relations are closer (centre of vital interests);
  • (b) if the State in which the individual has the centre of vital interests cannot be determined, or if there is not a permanent home available to the individual in either State, the individual shall be deemed to be a resident only of the State in which the individual has an habitual abode;
  • (c) if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be a resident only of the State of which the individual is a national;
  • (d) if the individual 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 by reason of the provisions of paragraph (1), a person other than an individual is a resident in both States, the competent authorities of the Contracting jurisdictions shall endeavour to solve the issue by mutual agreement, having regard to its domicile, residency, place of effective management of the company, the place where it is incorporated or otherwise constituted and any other relevant factor.