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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 Romania: any person who, under the laws of Romania, is liable to tax therein by reason of his domicile, residence, place of management, place of registration or any other criterion of a similar nature. This term, however, does not include any person who is liable to tax in Romania in respect only of income from sources in Romania;
  • (b) in the case of United Arab Emirates: a person who, under the laws of United Arab Emirates has his domicile in the United Arab Emirates and a company which is incorporated in the United Arab Emirates and has its effective place of management therein.

(2) For the purpose of paragraph 1 above:

  • (a) in the case of Romania, the term "resident" shall include:
    • (i) Romania, any administrative-territorial unit or any local authority thereof and the Government of Romania;
    • (ii) the National Bank of Romania, any institution or any person or any entity owned or controlled directly or indirectly by Romania, by an administrative-territorial unit or by a local authority thereof or by the Government of Romania.
  • (b) in the case of United Arab Emirates, the term "resident" shall include:
    • (i) the Federal Government of the United Arab Emirates, the local governments and the local authorities thereof;
    • (ii) any Governmental institutions created under public law such as the Central Bank, funds, corporations, authorities, foundations, agencies or any other similar entities established in the United Arab Emirates;
    • (iii) any inter-governmental entity established in the United Arab Emirates in whose capital the United Arab Emirates subscribes together with other States.

(3) Where by reason of the provisions of paragraph 1 an individual is deemed to be a resident of both Contracting States, then his status shall be defined as follows:

  • (a) he shall be deemed to be a resident 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 of the Contracting State with which his personal and economic relations are closer (center of vital interests);
  • (b) if the Contracting State in which he has his center of vital interests cannot be determined, or if he does not have a permanent home available to him in either Contracting State, he shall be deemed to be a resident 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 of the Contracting State of which he is a national;
  • (d) if he is a national of both Contracting 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 such a person shall be deemed to be a resident of the State in which its place of effective management is situated.