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Article 4 Resident
- 1.
- 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.
- 2.
-
- a)
- However, the term ``resident of a Contracting State'' does not include any person who is liable to tax in that State in respect only of income from sources in that State or capital situated therein;
- b)
- In the case of income derived or paid by a partnership, estate, or trust, this term applies only to the extent that the income derived by such partnership, estate, or trust is subject to tax in that State as the income of a resident, either in its hands or in the hands of its partners or beneficiaries; and
- c)
- Slovakia shall consider a United States citizen or an alien lawfully admitted for permanent residence (a green card holder) to be a resident of the United States only if such person has a substantial presence, permanent home, or habitual abode in the United States.
- 3.
-
The term ``resident of a Contracting State'' includes:
- a)
- that State, a political subdivision, or a local authority thereof, and any agency or instrumentality of any such State, subdivision or authority; and
- b)
- a pension trust or any other organization that is constituted and operated exclusively to provide pension benefits or for religious, charitable, scientific, artistic, cultural or educational purposes and that is a resident of that State according to the laws of that State, notwithstanding that all or part of its income may be exempt from income tax under the domestic law of that State.
- 4.
-
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 (center of vital interests);
- b)
- if the State in 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.
- 5.
- Where by reason of the provisions of paragraph 1 a company is a resident of both Contracting States, if it is created under the laws of a Contracting State or a political subdivision thereof, it shall be deemed to be a resident of that State.
- 6.
- Where by reason of the provisions of paragraph 1 a person other than an individual or a company is a resident of both Contracting States, the competent authorities of the Contracting States shall settle the question by mutual agreement and determine the mode of application of the Convention to such person.
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.
-
The term, ``permanent establishment'' also includes:
- a)
- a building site or construction or installation project, or an installation or drilling rig or ship used for the exploration or exploitation of natural resources, but only if it lasts more than 12 months; and
- b)
-
the furnishing of services, including consultancy services, by an enterprise through employees or other personnel, but only if activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than 9 months within any 12 month period.
A permanent establishment shall not exist in any taxable year in which the activity described in subparagraph a) or b) of this paragraph, respectively, continues for a period or periods aggregating not more than 30 days in that taxable year.
- 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;
- e)
- the maintenance of a fixed place of business solely for the 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).
- 5.
- Notwithstanding the provisions of paragraphs 1 and 2, where a person (other than an agent of an independent status to whom paragraph 6 applies) is acting on behalf of an enterprise and has and habitually exercises in a Contracting State an authority 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 4 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.
- 6.
- An enterprise shall not 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 independent status, provided that such persons are acting in the ordinary course of their business.
- 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 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 Real Property (Immovable Property)
- 1.
- Income derived by a resident of a Contracting State from real property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.
- 2.
- The term ``real property'' shall have the meaning which it has under the law of the Contracting State in which the property in question is situated. The term shall in any case include property accessory to real property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of real property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits and other natural resources; ship, boats and aircraft shall not be regarded as real property.
- 3.
- The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of real property.
- 4.
- The provisions of paragraphs 1 and 3 shall also apply to the income from real property of an enterprise and to income from real property used for the performance of independent personal services.
- 5.
- A resident of a Contracting State who is liable to tax in the other Contracting State on income from real property situated in the other Contracting State may compute the tax on such income on a net basis as if such income were attributable to a permanent establishment in such other State. In the case of the United States tax, and election to apply the preceding sentence shall be binding for the taxable year of the election and all subsequent taxable years unless the competent authority of the United States agrees to terminate the election.
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