- 1
- For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the laws of that Contracting State, is liable to tax therein by reason of his domicile, residence, place of head or main office, place of management or any other criterion of a similar nature, and also includes:
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- a)that Contracting State and any political subdivision or local authority thereof;
- b)a pension fund established and regulated as such under the laws of that Contracting State; and
- c)a person established and operated in that Contracting State principally for a religious, charitable, educational, scientific, artistic, cultural or public purpose, only if all or a part of its income is exempt from tax under the laws of that Contracting State.
- This term, however, does not include any person who is liable to tax in that Contracting State in respect only of income from sources in that Contracting State.
- 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:
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- a)he shall be deemed to be a resident only of the Contracting State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the Contracting State with which his personal and economic relations are closer (centre of vital interests);
- b)if the Contracting 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 Contracting State, he shall be deemed to be a resident only 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 only 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
- Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident only of the Contracting State in which its place of head or main office is situated.
- 4
- Where, pursuant to any provisions of this Convention, a Contracting State reduces the rate of tax on, or exempts from tax, an item of income of a resident of the other Contracting State and under the laws in force in that other Contracting State the resident is subject to tax by that other Contracting State only on that part of such item of income which is remitted to or received in that other Contracting State, then the reduction or exemption shall apply only to so much of such item of income as is remitted to or received in that other Contracting State.
- 5
- For the purposes of applying this Convention:
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- a)an item of income:
- (i)derived from a Contracting State through an entity that is organised in the other Contracting State; and
- (ii)treated as the income of the beneficiaries, members or participants of that entity under the tax laws of that other Contracting State; shall be eligible for the benefits of the Convention that would be granted if it were directly derived by a beneficiary, member or participant of that entity who is a resident of that other Contracting State, to the extent that such beneficiaries, members or participants are residents of that other Contracting State and satisfy any other conditions specified in the Convention, without regard to whether the income is treated as the income of such beneficiaries, members or participants under the tax laws of the first-mentioned Contracting State;
- b)an item of income:
- (i)derived from a Contracting State through an entity that is organised in the other Contracting State; and
- (ii)treated as the income of that entity under the tax laws of that other Contracting State; shall be eligible for the benefits of the Convention that would be granted to a resident of that other Contracting State, without regard to whether the income is treated as the income of the entity under the tax laws of the first-mentioned Contracting State, if such entity is a resident of that other Contracting State and satisfies any other conditions specified in the Convention;
- c)an item of income:
- (i)derived from a Contracting State through an entity that is organised in a state other than the Contracting States; and
- (ii)treated as the income of the beneficiaries, members or participants of that entity under the tax laws of the other Contracting State and under the tax laws of the state where the entity is organised; shall be eligible for the benefits of the Convention that would be granted if it were directly derived by a beneficiary, member or participant of that entity who is a resident of that other Contracting State, to the extent that such beneficiaries, members or participants are residents of that other Contracting State and satisfy any other conditions specified in the Convention, without regard to whether the income is treated as the income of such beneficiaries, members or participants under the tax laws of the first-mentioned Contracting State, provided that the state where the entity is organised has concluded with the first-mentioned Contracting State a convention which contains provisions for effective exchange of information on tax matters;
- d)an item of income:
- (i)derived from a Contracting State through an entity that is organised in a state other than the Contracting States; and
- (ii)treated as the income of that entity under the tax laws of the other Contracting State; shall not be eligible for the benefits of the Convention; and
- e)an item of income:
- (i)derived from a Contracting State through an entity that is organised in that Contracting State; and
- (ii)treated as the income of that entity under the tax laws of the other Contracting State; shall not be eligible for the benefits of the Convention.
