6 DE SETEMBRO DE 1996

1460-07)

to the territorial sea of the Republic of Korea which, in accordance with international law, has been or may hereafter be designated under the laws of the Republic of Korea as an area within wich the sovereign rights of the Republic of Korea with respect to the sea-bed and subsoil and their natural resources may be exercised;

b) The term «Portugal» means the territory of the Portuguese Republic situated in the European continent, the archipelagoes of Azores and Madeira, the respective territorial sea and any other zone in wich, in accordance with the laws of Portugal and international law, the Portuguese Republic has its jurisdiction or sovereign rights with respect to the exploration and exploitation of the natural resources of the sea-bed and subsoil;

c) The terms «a Contracting State» and «the other Contracting State» mean the Republic of Korea or the Portuguese Republic, as the context requires;

d) The term «tax» means Korean tax or Portuguese tax, as the context requires;

e) The term «person» includes an individual, a company and any other body of persons;

f) The term «company» means any body corporate or any entity which is treated as a body corporate for tax purposes;

g) The terms «enterprise of a Contracting State» and «enterprise of the other Contracting State» mean respectively an enterprise carried on by a resident of a Contracting State and an enterprise carried on by a resident of the other Contracting State;

h) The term «national» means:

/') All individuals possessing the nationality of a Contracting State;

«) All legal persons, partnerships and associations deriving their status as such from the laws in force in a Contracting State;

i) The term .«intemational traffic» means any transport by a ship or aircraft operated by an enterprise of a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

f) The therm «competent authority* means:

/') In the case of Korea, the Minister of Finance and Economy or his authorized representative; k) In the case of Portugal, the Minister of Finance, the Director-General of Taxation (Director-Geral das Contribuições e Impostos) or their authorized representative.

2 — As regards the application of the Convention by a Contracting State, any term not defined therein shall, unless the context otherwise requires, have the meaning which it has under the law of that State concerning the taxes to wich the Convention applies.

Article 4 Resident

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 head or main office, place of management or any other criterion of a similar nature. But this term does not include any person who 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 with which is 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 of the State in wich 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, then it shall be deemed to be a resident only of the State in which its place of effective management is situated. In case of doubts the competent authorities of the Contracting States shall settle the question-by mutual agreement.

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 «permanent establishment* includes especially:

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 construction or installation project constitutes a permanent establishment only if it lasts more than six months.

4 — 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;