Australia - Residence

Article 4. Residence

Definition tax residence (lid 1)

1.  For the purposes of this Agreement, a person is a resident of one of the States - 

a  in the case of Australia, subject to paragraph (2), if the person is a resident of Australia for the purposes of Australian tax; and 

b  in the case of the Netherlands, if the person is a resident of the Netherlands for the purposes of Netherlands tax but not if he is liable to tax in the Netherlands in respect only of income from sources therein. 

Tie breaker – dual residence individuals (lid 2)

2.  In relation to income from sources in the Netherlands, a person who is subject to Australian tax on income which is from sources in Australia shall not be treated as a resident of Australia unless the income from sources in the Netherlands is subject to Australian tax or, if that income is exempt from Australian tax, it is so exempt solely because it is subject to Netherlands tax. 

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

a  he shall be deemed to be a resident solely of the State in which he has a permanent home available to him; 

b  if he has a permanent home available to him in both States, or if he does not have a permanent home available to him in either of them, he shall be deemed to be a resident solely of the State with which his personal and economic relations are the closer. 

Tie breaker – dual residence corporations (lid 3)

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