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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 Kenya any person who under the laws of Kenya, is liable to tax therein by reason of his domicile, residence, place of effective management, place of incorporation or any other criterion of a similar nature. This term does not include any person who is liable to tax in respect only of income from sources in Kenya;
  • (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 UAE or any political subdivision;
    • (iii) or local government thereof.

(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, local Government, county Government or local authority thereof;
  • (b) any person other than an individual owned or controlled directly or indirectly by that State or any political subdivision or local government or county government or local authority thereof;
  • (c) a registered pension fund;
  • (d) charities or religious, educational and cultural organizations.

(3) Where by reason of the provisions of paragraph 1 of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

  • (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 States, he shall be deemed to be a resident of the State with which his personal and economic relations are closer (centre of vital interests);
  • (b) if the 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 State, he shall be deemed to be a resident of the State in which he has an habitual abode;
  • (c) if he has an habitual abode in both States or none of them, he shall be deemed to be a resident of the State of which he is a national;
  • (d) if he is a national of both States or of none 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 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 of the State in which its place of effective management is situated.