background image
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

(1) For the purpose of this Convention, the term "resident of a Contracting State" means any person who under the laws of that State is liable to tax therein by reason of his domicile, residence, place of management or any other criterion of a similar nature.

(2) Where, in accordance with 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 it cannot be determined in which Contracting State his centre of vital interests is situated, or if he does not have a permanent home available to him in either 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.

(3) Whereby reason of the provisions of paragraph (1) a company is recognized as a resident of both Contracting States then its status shall be determined as follows:

  • (a) it shall be deemed to be a resident of the Contracting State of which it is a national;
  • (b) if it does not have the nationality of either one of the Contracting States, then that company shall be deemed to be a resident of the Contracting State in which its place of effective management is situated.

(4)

  • (a) Whereby reason of the provisions of paragraph (1) a person other than an individual or an enterprise is a resident of both Contracting States, then the competent authorities of the States shall settle the question by mutual agreement in order to find the appropriate method for applying the provisions of this Convention to that person.
  • (b) For the application of the provisions of this Convention by a Contracting State, any term not defined herein, unless the context otherwise requires, shall have the meaning that it has under the laws of that Contracting State with respect to the taxes to which this Convention applies.