13 DE SETEMBRO DE 1996

1471

other zone in which, 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, and of the superjacent waters;

b) The term «the Czech Republic» means the territory in which the tax laws of the Czech Republic are effective;

c) The terms «a Contracting State» and «the other Contracting State» mean Portugal or the Czech

. Republic, as the context requires;

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

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

f) 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;

g) The term «international traffic» means any transport by a ship or aircraft operated by an enterprise which has its place of effective management in a Contracting State, except when the ship or aircraft is operated solely between places in the other Contracting State;

h) The term «competent authority» means:

i) In the case of Portugal, the Minister of Finance, the Director General of Taxation (director-geral das Contribuições e Impostos) or their authorized representative;

ii) In the case of the Czech Republic, the Minister of- Finance or his authorized representative;

i) The term «national» means:

i) Any individual possessing the nationality , ■ ' . of a Contracting State;

ii) Any legal person, association or other entity deriving its status as such from the laws in force in a Contracting State.

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 which 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 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 his personal and economic relations are closer (centre of vital interest);

b) If the State in which he has his centre of vital interest 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 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 questions 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 of the State in which its place of effective management is situated.

Article 5 Permanent establishment

1 — For the purpose 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, a construction, assembly or installation project or supervisory activities in connection therewith constitutes a permanent establishment only if it lasts more than 12 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;

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;