Article 4 - Resident

Residence tie-breaker rules determine treaty residency and allocate taxing jurisdiction when individuals or entities have dual residency.

The Article defines resident of a Contracting State as any person liable to tax there by domicile, residence, place of management or similar criteria, including the State and its subdivisions, but excluding those taxable only on source income. For individuals with dual residence, treaty residency is determined in order: permanent home; centre of vital interests if homes in both States; habitual abode if centre cannot be determined or no permanent home; nationality if habitual abode is inconclusive; and finally mutual agreement by competent authorities. For non individuals with dual residence, competent authorities will agree the State of residence considering place of incorporation, place of effective management and other relevant factors.