Article 4-7

Where by reason of the provisions of paragraphs (1) (g) and (h) of Article 3 an individual is a resident of both Contracting States:

(a)

He shall be deemed to be a resident of that Contracting State in which he maintains his permanent home. If he has a permanent home in both Contracting States or in neither of the Contracting States, he shall be deemed to be a resident of that Contracting State with which his personal and economic relations are closest (center of vital interests)

(b)

If the Contracting State in which he has his center of vital interests cannot be determined, he shall be deemed to be a resident of that Contracting State in which he has a habitual abode; and

(c)

If he has a habitual abode in both Contracting States or in neither of the Contracting States, he shall be deemed to be a resident of the Contracting State of which he is a citizen.

(1)

A resident of one of the Contracting States may be taxed by the other Contracting State on any income from sources within that other Contracting State and only on such income, subject to any limitations set forth in this Convention.

(2)

The provisions of this Convention shall not be construed to restrict in any manner any exclusion, exemption, deduction, credit, or other allowance now or hereafter accorded -

(a)

By the laws of one of the Contracting States in the determination of the tax imposed by that Contracting State, or

(b)

By any other agreement between the Contracting States.

(3)

Notwithstanding any provisions of this Convention except paragraph (4), a Contracting State may tax a citizen of that Contracting State or a resident (as determined under Article 4) of that Contracting State as if this Convention had not come into effect.

(4)

The provisions of paragraph (3) shall not affect:

(a)

The benefits conferred by a Contracting State under Articles 20, 21, and 22; and

(b)

The benefits conferred by a Contracting State under Articles 17, 18, 19, and 24 upon individuals who are neither citizens of, nor have immigrant status in, that Contracting State.

(5)

The competent authorities of the two Contracting States may prescribe regulations necessary to carry out the provisions of this Convention.

(1)

For the purposes of this Convention, the term ``permanent establishment'' means a fixed place of business in which the business of an enterprise is wholly or partly carried on.

(2)

The term ``permanent establishment'' shall include especially:

(a)

A branch;

(b)

An office;

(c)

A factory;

(d)

A workshop;

(e)

A mine, quarry, or other place of extraction of natural resources;

(f)

A building site or construction or assembly project which exists for more than 18 months.

(3)

Notwithstanding paragraphs (1) and (2), a permanent establishment shall not include a fixed place of business used only for one or more of the following:

(a)

The use of facilities 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 for the purpose of storage, display, or delivery;

(c)

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

(d)

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

(e)

The maintenance of a fixed place of business for the purpose of advertising, for the supply of information, for scientific research, or for similar activities which have a preparatory or auxiliary character, for the enterprise.

(4)

A person acting in a Contracting State on behalf of an enterprise of the other Contracting State, other than an agent of an independent status to whom paragraph (5) applies, shall be deemed to be a permanent establishment in the first-mentioned Contracting State if he has, and habitually exercises in that State, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise.

(5)

An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent, or any other agent of an independent status, where such person is acting in the ordinary course of his business, whether or not such broker or agent acts exclusively for one or more principals.

(6)

An enterprise of one of the Contracting States shall not be deemed to have a permanent establishment in the other Contracting State merely because such enterprise sells at the termination of a trade fair in such other Contracting State goods or merchandise which such enterprise displayed at such trade fair.

(7)

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

(1)

Income from real property, including royalties and other payments in respect of the exploitation of natural resources and gains derived from the sale, exchange, or other disposition of such property or of the right giving rise to such royalties or other payments, may be taxed by the Contracting State in which such real property or natural resources are situated. For purposes of this Convention, interest on indebtedness secured by real property or secured by a right giving rise to royalties or other payments in this respect of the exploitation of natural resources shall not be regarded as income from real property.

(2)

Paragraph (1) shall apply to income derived from the usufruct, direct use, letting, or use in any other form of real property.

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