The Double Taxation Relief (Taxes on Income) (Papua New Guinea) Order 1991

ARTICLE 4 Fiscal domicile

(1) For the purposes of this Convention, the term “resident of a Contracting State” means any person who, under the law 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.

(2) A person is not a resident of a Contracting State for the purposes of this Convention if he is liable to tax in that State in respect only of income from sources in that State.

(3) Where by reason of the provisions of paragraph (1) of this Article an individual is a resident of both Contracting States, then his status shall be determined in accordance with the following rules:

(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 interests);

(b) if the State in which he has his centre of vital interests cannot be determined, or if he has no 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 is a national of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

(4) 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 its status shall be determined in accordance with the following rules:

(a) that person shall be deemed to be a resident of the State in which its place of effective management is located;

(b) if it is not possible to determine that person’s status under paragraph (4)(a) of this Article the competent authorities of the Contracting States shall endeavour to do so by mutual agreement.

(5) Notwithstanding paragraph (4) of this Article, where a trust estate within the meaning of the laws of Papua New Guinea is at the same time a settlement under the laws of the United Kingdom, and:

(a) the trust estate is treated by the laws of Papua New Guinea as a resident trust estate; and

(b) the trustees of the settlement are, according to the laws of the United Kingdom, all resident or treated by those laws as resident in the United Kingdom;

for the purposes of this Convention that trust estate shall not be regarded as a resident of Papua New Guinea and those trustees shall not be regarded as a body of persons which is a resident of the United Kingdom.