- 1
- For the purposes 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 incorporation, place of management or any other criterion of a similar nature, and also includes that State and any political subdivision or local authority thereof.
- 2
- A person, other than an individual, shall be regarded to be liable to tax:
-
- a)in the Netherlands, if the person is a resident of the Netherlands for the purposes of the company tax;
- b)in Bulgaria, if the person is a resident of Bulgaria for the purposes of the corporate income tax;
- provided that the income derived by that person is treated under the tax laws of that State as income of that person and not as the income of the person’s beneficiaries, members or participants.
- 3
- Notwithstanding the provisions of paragraphs 1 and 2, the term “resident of a Contracting State” does not include any person who is liable to tax in that State in respect only of income from sources in that State.
- 4
- 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.
- 5
- 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 determine by mutual agreement the Contracting State of which such person shall be deemed to be a resident for the purposes of this Convention, having regard to its place of effective management, the place where it is incorporated or otherwise constituted and any other relevant factors. In the absence of such agreement, such person shall not be entitled to claim any benefits under this Convention, except the benefits of Articles 24 (Non-discrimination) and 25 (Mutual Agreement Procedure). The competent authorities may determine by mutual agreement the mode of application of the other provisions of this Convention to that person.
