- 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 that person’s 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:
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- a)in the Netherlands, if the person is a resident of the Netherlands for the purposes of the company tax or the revenue tax;
- b)in Zambia, if the person is a resident of Zambia for the purposes of the 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 that individual’s status shall be determined as follows:
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- a)the individual shall be deemed to be a resident only of the State in which a permanent home is available to the individual; if a permanent home is available to the individual in both States, the individual shall be deemed to be a resident only of the State with which the individual’s personal and economic relations are closer (centre of vital interests);
- b)if sole residence cannot be determined, under the provisions of sub-paragraph a), the individual shall be deemed to be a resident only of the State in which the individual has an habitual abode;
- c)if the individual has an habitual abode in both States or in neither of them, the individual shall be deemed to be a resident only of the State of which the individual is a national;
- d)if the individual 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, then it shall be deemed to be a resident only of the State in which its place of effective management is situated.
