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ARTICLE 4

Resident

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

  • (a) 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 United Arab Emirates or any political subdivision or local government thereof;
    • (iii) this term also includes:
      • (a) the Government of that Contracting State and any political subdivision or local government or local authority thereof;
      • (b) any person other than an individual wholly owned by a Contracting State or any political subdivision or local government or local authority thereof;
      • (c) a qualified government entity;
      • (d) pension scheme;
      • (e) charities or religious, educational and cultural organizations.
  • (b) in the case of Mexico:
    • (i) any person who, under the laws of Mexico is liable to income tax therein by reason of his domicile, residence, place of incorporation, place of management or any other criterion of a similar nature, and also includes Mexico and any political subdivision or local authority thereof.
  • This term, however, does not include any person who is liable to tax in Mexico in respect only of income from sources in Mexico situated therein.

(2) 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 permanent home or 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 an 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 his status cannot be determined under the provisions of paragraph c), the competent authorities of the Contracting States shall settle the question by mutual agreement.

(3) Where by reason of the provisions of paragraph 1, a person other than an individual is a resident of both Contracting States, the competent authorities of the Contracting States shall by mutual agreement endeavour to settle the question and to determine the mode of application of the Agreement to such person.