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ARTICLE 4
Resident
(1) For the purposes of this Convention, the term "resident of a Contracting State" means:
- (a) In the case of Panama under its laws:
- (i) any individual who stays in Panama for more than 183 days during the calendar year and derives taxable income from sources located in Panama;
- (ii) any person other than an individual incorporated or registered in Panama that derives taxable income from sources located in Panama; and
- (iii) Panama, any political subdivision or local authority thereof;
- (b) in the case of the Czech Republic:
- any person who, under the laws of the Czech Republic, is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature, and also includes the Czech Republic and any political subdivision or local authority thereof. This term, however, does not include any person who is liable to tax in the Czech Republic in respect only of income from sources in the Czech Republic.
(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 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 only 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 has not a permanent home available to him in either State, he shall be deemed to be a resident only of the State in which he has an habitual abode;
- (c) if he has an habitual abode in both States or in neither of them, he shall be deemed to be a resident only of the 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.
(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 endeavour to settle the question by mutual agreement. In the absence of mutual agreement by the competent authorities of the Contracting States, the person shall not be considered a resident of either Contracting State for the purposes of claiming any benefits provided by the Convention.