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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 4

Resident

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

  • (a) In the case of the UAE:
    • (i) all individuals possessing the nationality of the United Arab Emirates and any legal person, company or entity deriving its status as such from the laws in force in the United Arab Emirates
    • (ii) any person considered as resident under the laws of the United Arab Emirates.
  • (b) In the case of the Hashemite Kingdom of Jordan:
    • (i) any person who under the laws of the Hashemite Kingdom of Jordan is resident for tax purposes.

(2) For the purposes of paragraph (1), a resident of a Contracting State includes:

  • (a) the Government of that Contracting State and any political subdivision or local authority thereof;
  • (b) any governmental enterprise created in that Contracting State under public law such as a company, a central bank, a fund, an agency, a committee or a charity enterprise or any other similar entity as agreed upon by both Contracting States;
  • (c) any entity created by the government of that Contracting State, any political subdivision or local authority or an enterprise as defined under subparagraph (b), in association with similar entities from third States;

(3) 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 a 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 States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

(4) Where by reason of the provisions of paragraph (1), 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 Contracting State where its place of effective management is located.