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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 of a Territory

(1) For the purposes of this Agreement, the term "resident of a territory" means any person who, under the laws in force of that territory, is liable to tax therein by reason of his domicile, residence, place of management, place of incorporation or any other criterion of a similar nature, and also includes any authority administering the territory and any subdivision or local authority thereof.

(2) A person is not a resident of a territory for the purposes of this Agreement if that person is liable to tax in that territory in respect only of income from sources in that territory, provided that this paragraph shall not apply to individuals who are residents of the territory referred to in paragraph (1)(b) of Article 2, as long as under its Income Tax Act resident individuals are taxed only in respect of income from sources in that territory.

(3) Where by reason of the provisions of paragraphs (1) and (2), an individual is a resident of both territories, then his status shall be determined as follows:

  • (a) he shall be deemed to be a resident only of the territory in which he has a permanent home available to him; if he has a permanent home available to him in both territories, he shall be deemed to be a resident only of the territory with which his personal and economic relations are closer (centre of vital interests);
  • (b) if the territory 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 territory, he shall be deemed to be a resident only of the territory in which he has an habitual abode;
  • (c) if he has an habitual abode in both territories or in neither of them, he shall be deemed to be a resident only of the territory of which he is a national under the laws in force in that territory;
  • (d) if he is a national as referred to under sub-paragraph (c) of both territories or of neither of them, the competent authorities shall endeavour to settle the question by mutual agreement.

(4) Where by reason of the provisions of paragraphs (1) and (2), a person other than an individual is a resident of both territories, the competent authorities of the territories shall settle the question by mutual agreement.