AUSTRALIAN TAX TREATIES

East Timor Sea Treaty  

TIMOR SEA TREATY BETWEEN THE GOVERNMENT OF EAST TIMOR AND THE GOVERNMENT OF AUSTRALIA  

Annex G under Article 13(b) of this Treaty  

ARTICLE 3   Resident  

1  
For the purposes of this Taxation Code, resident of a Contracting State means:


(a) in the case of Australia, a person who is liable to tax in Australia by reason of being a resident of Australia under the tax law of Australia; and


(b) in the case of East Timor, a person who is liable to tax in East Timor by reason of being a resident of East Timor under the tax law of East Timor,

but does not include any person who is liable to tax in that Contracting State in respect only of income from sources in that Contracting State.

2  
Where by reason of the provisions of paragraph 1 of this Article, an individual is a resident of both Contracting States, then the status of the person shall be determined as follows:


(a) the person shall be deemed to be a resident solely of the Contracting State in which a permanent home is available to the person;


(b) if a permanent home is available to the person in both Contracting States, or in neither of them, the person shall be deemed to be a resident solely of the Contracting State in which the person has an habitual abode;


(c) if the person has an habitual abode in both Contracting States, or if the person does not have an habitual abode in either of them, the person shall be deemed to be a resident solely of the Contracting State with which the person ' s personal and economic relations are the closer. For the purposes of this subparagraph, an individual ' s nationality or citizenship of one of the Contracting States shall be a factor in determining the degree of the individual ' s personal and economic relations with that Contracting State;


(d) if it cannot be determined with which Contracting State the person ' s personal and economic relations are the closer, the competent authorities of the Contracting States shall consult with a view to settling the question by mutual agreement.

3  
Where by reason of the provisions of paragraph 1 of this Article, a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident solely of the Contracting State in which its place of effective management is situated.




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