Saudi Arabia - Residence

Article 4. Resident

Tax residence

1.  the purposes of this Convention, the term “resident of a Contracting State” means:

a.  any person who, under the laws of that State, is liable to tax in that State, by reason of his domicile, residence, place of management or any other criterion of a similar nature; 

b.  the Government of any of the two Contracting States or any of its legal institutions, agencies or its local authorities; 

c.  a legal person organized under the laws of a Contracting State and that is generally exempt from tax in that State and is established and maintained in that State either:

i.  for a religious, charitable, educational, scientific, or other similar purpose; or 

ii.  to provide pensions or other similar benefits to employees pursuant to a pension plan. 

This  term, however, does not include any person who is liable to tax in that State in respect only of income from sources in that State. 

Tie breaker

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

a.  he shall be deemed to be a resident only of the State in which he has a permanent home available to him; if he has a permanent home available to him in both Contracting States, he shall be deemed to be a resident only of the Contracting State in which his personal and economic relations are closer (“center of ‘vital’ interests”); 

b.  if the Contracting State in which he has his centre of ‘vital’ interests cannot be determined, or if he has not a permanent home available to him in either Contracting State, he shall be deemed to be a resident only of the Contracting State in which he has an habitual abode; 

c.  if he has an habitual abode in both Contracting States or in neither of them, he shall be deemed to be a resident only of the Contracting State of which he is a national;

d.  if he is a national of both Contracting States or of neither of them, the competent authorities of the Contracting States shall settle the question by mutual agreement. 

Dual residence

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 only of the State in which its place of effective management is situated. 

Individuals

Co-operations