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ARTICLE 5

Resident

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

  • (a) in the case of the Republic of Croatia:
    • (i) any person who, under the laws of Croatia, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes Croatia and any local authority thereof. This term, however, does not include any person who is liable to tax in Croatia in respect only of income from sources in Croatia;
    • (ii) financial institutions as defined in Article 1 of the Protocol to this Agreement;
  • (b) in the case of the United Arab Emirates:
    • (i) a national of United Arab Emirates and an individual who, under the laws of the United Arab Emirates, is considered a resident thereof by reason of that individual's domicile, residence or any other criterion of a similar nature;
    • (ii) any company or other legal entity which is incorporated or created under the laws of the United Arab Emirates and has its place of effective management there;
    • (iii) the United Arab Emirates and its local government or financial institutions as defined in Article 1 of the Protocol to this Agreement.

(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 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 State, be 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 Contracting 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.

(3) Where by reason of the provisions of paragraph 1 of this Article, 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.