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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 3

General Definitions

(1) For the purposes of this Convention, unless the context otherwise requires:

  • (a) the term “Israel” means the State of Israel and when used in a geographical sense comprises the territory in which the Government of the State of Israel has taxation rights, including its territorial sea, as well as those maritime areas adjacent to the outer limit of the territorial sea, including seabed and subsoil thereof over which the State of Israel, in accordance with international law and the laws of the State of Israel, exercises its sovereign or other rights and jurisdiction;
  • (b) the term “United Arab Emirates” means, when used in a geographical sense, the territory of the United Arab Emirates which is under its sovereignty as well as the area outside the territorial water, airspace and submarine areas over which the United Arab Emirates exercises, in accordance of its international law and the law of United Arab Emirates sovereign and jurisdictional rights including the Exclusive Economic Zone and the mainland under its jurisdiction in respect of any activity carried on in its water, seabed, subsoil, in connection with the exploration for or the exploitation of natural resources by virtue of its law and international law.
  • (c) the terms “a Contracting State” and “the other Contracting State” mean Israel or United Arab Emirates, as the context requires;
  • (d) the term “person” includes an individual, a pension plan, a company, a trust and any other body of persons;
  • (e) the term “company” means any body corporate or any entity that is treated as a body corporate for tax purposes;
  • (f) the term “enterprise” applies to the carrying on of any business;
  • (g) the terms “enterprise of a Contracting State” and “enterprise of the other Contracting State” mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;
  • (h) the term "international traffic" means any transport by a ship or aircraft except when the ship or aircraft is operated solely between places in a Contracting State and the enterprise that operates the ship or aircraft is not an enterprise of that State;
  • (i) the term “competent authority” means:
    • (i) in Israel, the Minister of Finance or his authorised representative;
    • (ii) in the United Arab Emirates, the Minister of Finance or his authorised representative;
  • (j) the term “national”, in relation to a Contracting State, means:
    • (i) in relation to Israel, any individual possessing the nationality of Israel and any legal person, partnership or association deriving its status as such from the laws in force in Israel;
    • (ii) in relation to the United Arab Emirates, any individual possessing the nationality of the United Arab Emirates and any legal person, partnership or association deriving its status as such from the laws in force in the United Arab Emirates;
  • (k) the term “business” includes the performance of professional services and of other activities of an independent character;
  • (l) the term “pension plan” means any plan, scheme, fund, trust or other arrangement established in a Contracting State and:
    • (i) is established and operated exclusively or almost exclusively to administer or provide retirement benefits and ancillary or incidental benefits to individuals and that is regulated as such by that State or one of its political subdivisions or local authorities; and
    • (ii) is generally exempt from income taxation in that State or, in the case of Israel, is a pension plan that has been approved in accordance with the provisions of the Control of Financial Services Act (Provident Funds) 2005, as a pension Provident Fund;
  • (m) the term "qualified government entity" means:
    • (i) the Central Bank of the United Arab Emirates;
    • (ii) the Abu Dhabi Investment Authority;
    • (iii) the Emirates Investment Authority;
    • (iv) the Mubadala Investment Company;
    • (v) the Investment Corporation of Dubai; and
    • (vi) any other entity the capital of which is wholly directly owned by the federal or local Governments of the United Arab Emirates, including a political subdivision and local authority thereof, as may be agreed upon from time to time between the Governments of the Contracting States through notifications by the competent authorities;

Provided that an entity mentioned in sub-paragraphs (ii), (iii), (iv), (v) and (vi) is wholly directly owned by the government and its place of effective management is in the United Arab Emirates. The United Arab Emirates' competent authority shall notify the Israeli competent authority if an entity of those listed above no longer meets the above-mentioned criteria or if there was a substantial change in the entity's legal structure.

(2) As regards the application of the Convention at any time by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning that it has at that time under the law of that State for the purposes of the taxes to which the Convention applies, any meaning under the applicable tax laws of that State prevailing over a meaning given to the term under other laws of that State.