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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 purposes of this Convention, the term "resident of a Contracting State" shall mean all people, according to the law of that State, subject to tax by reason of their of their domicile, residence, place of management or any other criterion of a similar nature, but the term may not include any person subject to tax in that State in respect only of income from sources situated in that State.

(2) For the purposes of paragraph (1) of this Article, the term "resident" shall include:

  • (a) a government of Contracting State, or any of its political subdivision and local authorities;
  • (b) a government institution established in accordance with a general law such as the Central Bank, funds, institutions, bodies and agencies or any similar entities established in a Contracting State;
  • (c) any government entities established in the UAE which contribute to the capital of such entities with other governments.

(3) If an individual is a resident of both Contracting States in accordance with the provisions of paragraph (1) of this Article, his/her status would then be determined as follows:

  • (a) he shall be deemed to be a resident of the State in which he/she has a permanent home. If a permanent home is available to him/her in both Contracting States, he/she shall be deemed to be a resident of the Contracting State with which his/her personal and economic relations are closer, "center of vital interests."
  • (b) if it cannot be determined in which Contracting State his/her the center of vital interests is situated or if he/she does not have a permanent home in either country, he/she shall be deemed to be a resident of the Contracting State in which he/she has a habitual abode,
  • (c) if he/she has a habitual abode in either Contracting States or does not has a habitual abode in any of them, he/she shall be deemed to be a resident of the State of which he/she is a national,
  • (d) if he/she is or not a national of both Contracting States, the competent authorities of both the Contracting States shall resolve the matter 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 such legal person shall be deemed to be a resident of the Contracting State where its place of effective management is situated.