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ARTICLE 4

Resident

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

  • (a) In the case of Indonesia, any person who, under the tax laws of Indonesia is liable to tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of similar nature;
  • (b) In the case of the United Arab Emirates:
    • (1) A United Arab Emirates national or an individual who is under the laws of the United Arab Emirates, is considered as a resident of the United Arab Emirates; and
    • (2) Any person other than an individual that is incorporated under the laws of the United Arab Emirates or any political subdivision, local government or local authority thereof.

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

  • (a) he shall be deemed to be a resident of the 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 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 does not have a permanent home available to him in either Contracting state, he shall be deemed to be a resident 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 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 this Agreement a person other than individual is a resident of more than one Contracting State, the competent authorities of the Contracting State shall endeavour to determine by mutual agreement the Contracting State of which such person shall be deemed to be a resident for the purposes of this Agreement, having regards to its place of effective management, the place where its incorporated, or otherwise constituted or any other relevant factors.