II SÉRIE-A — NÚMERO 78 100_______________________________________________________________________________________________________________

any political or administrative subdivision or local authority thereof. This term, however, 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 only 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 only of

the State with which his 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 does not have a

permanent home available to him in either State, he shall be deemed to be a resident only 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

only 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 the place of

effective managementis situated.

ARTICLE 5

Permanent Establishment

1. For the purposes of this Agreement, 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;

(f) a warehouse; and

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

3. The term “permanent establishment” likewise encompasses:

(a) a building site, construction, assembly or installation project or supervisory activities in connection

therewith, but only if such site, project or activities last more than six months; and

(b) the furnishing of services, including consultancy services, by an enterprise through employees or

other personnel engaged by the enterprise for such purpose, but only if activities of that nature continue (for

the same or a connected project) within a Contracting State for a period or periods aggregating more than six

months within any twelve-month period.

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 or display or irregular 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 or display or irregular delivery;

(c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the

purpose of processing by another enterprise;