716

II SÉRIE-A — NÚMERO 44

ess the context otherwise requires, have the meaning which

it has under the laws of that State concerning the taxes to

which the Convention applies.

Article 4

Residence 1 ^

1 trr 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 place of incorporation, or any other criterion of a similar nature. However, this term does not include any person that is liable to tax in that State in respect only of income from sources in that 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:

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 whith which his personal and economic relations are closer (center of vital interests);

b) If the State with which he has his center of vital interests cannot be determined, 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 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 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

3 — 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 endeavor to settle the question by mutual agreement. If the competent authorities are unable to make such a determination, the person shall not be considered to be a resident of either Contracting States for the purposes of enjoying benefits under this Convention.

Article 5 Permanent establishment

1 — For the purposes of this Convention, the term «permanent establishment* means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

2—The term <

a) A place of management;

b) A branch;

c) An office;

d) A factory;

e) A workshop; and

f) A mine, an oil or gas well, a quarry, or any other place of extraction of natural resources.

3 — A building site or a construction, installation, or assembly project, or supervisory activities in connection with such a site or project, or an installation or drilling rig or ship used for the exploration orv development of natural resources, constitutes a permanent establishment only if such site, project, or activities last more than 6 months. ' '

4—Notwithstanding the preceding provisions of this article, an enterprise of a Contracting State that carries on business of a permanent nature in the other Contracting State through its own employees or any other personnel engaged for such purpose for a period or periods amounting to or exceeding in the aggregate 9 months in any 12-month period commencing or ending in the taxable year concerned shall be deemed to have a permanent establishment in the other State.

5 — Notwithstanding the preceding provisions of this article, the term «permanent establishment shall be deemed not to include:

a) The use of facilities solely for the purpose of storage, display, or delivery of goods or merchandise belonging to the enterprise;

b) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display, or delivery;

c) The maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

d) The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise;

. e) The maintenance of a fixed place of business solely for die purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character; f) The maintenance of a fixed place of business solely for any combination of the activities mentioned in subparagraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

6—Notwithstanding the provisions of paragraphs 1 and 2, where a person — other than an agent of an independent status to whom paragraph 7 applies — is acting on behalf of an enterprise and has and habitually exercises in a Contracting State an autority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 5 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.

7 — Notwithstanding the provisions of paragraph 3 regarding supervisory services or the provisions of paragraph 4, an enterprise shall be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent, or any other agent of an indepen6eni provided that such persons are acting in the ordinary course of their business.

8 — The fact that a company which is a resident of a Contracting State controls or is controlled by a company that is a resident of the other Contracting State, or thav casv^s, on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.

Article 6

Income from immovable property (real property)

1 — Income derived by a resident of a Contracting State from immovable property (real property), including income from agricultural or forestry, situated in the other Contacting State may be taxed in that other State.