ARTICLE 4

Resident

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

• (a) in the case of the Federal Republic of Germany, a person who under the laws of the Federal Republic of Germany is subject to unlimited tax liability there;
• (b) in the case of the United Arab Emirates:
  • (i) an individual who has his domicile in the United Arab Emirates and is a national of the United Arab Emirates and
  • (ii) a company which is incorporated in the United Arab Emirates and has its place of effective management there, provided that the company can give evidence that its capital is beneficially owned exclusively by the United Arab Emirates and/or by a government institution of the United Arab Emirates and/or federal or local governments and/or by individuals being residents of the United Arab Emirates and the company is controlled by the aforementioned residents.

(2) For the purposes of paragraph (1) above:

• (a) the Federal Republic of Germany; the Lander and any political subdivisions or local authorities thereof shall be deemed to be a resident of the Federal Republic of Germany;
• (b) the United Arab Emirates and its political subdivisions or local governments shall be deemed to be a resident of the United Arab Emirates;
• (c) government institutions shall be deemed, according to affiliation, to be a resident of the Federal Republic of Germany or of the United Arab Emirates. Any institution shall be deemed to be a government institution which has been created by the government of one of the Contracting States or of its political subdivisions, or local governments, for the fulfilment of public functions and which is recognized as such by mutual agreement of the competent authorities of the Contracting States.

(3) 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 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 has not 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 in neither 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, the competent authorities of the Contracting States shall settle the question by mutual agreement.