Document ID: chunk:federal_register_of_legislation:C2008A00111:schedule:42a:p2
Version: federal_register_of_legislation:C2008A00111
Segment Type: schedule
Provision Reference: sch 42A (pt 2/16)
Character Range: 4292–6956

South African Revenue Service."

ARTICLE 2

Article 3 of the Agreement is amended by:

(a) inserting after subparagraph (i) of paragraph 1:

         "(j) the term "national", in relation to a Contracting State, means:

              (i) any individual possessing the nationality or citizenship of that Contracting State; and

              (ii) any company deriving its status as such from the laws in force in that Contracting State;" and

    (b) renumbering subparagraphs (j) and (k) of paragraph 1 as (k) and (l) respectively.

ARTICLE 3

Article 4 of the Agreement is omitted and the following Article 4 is substituted:

"Article 4

Resident

    1. For the purposes of this Agreement, the term "resident of a Contracting State" means a person who is a resident of that State for the purposes of its tax. The Government of a Contracting State or a political subdivision or local authority of that State is also a resident of that State for the purposes of the Agreement.

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

    3. Where by reason of the preceding provisions of this Article a person, being an individual, is a resident of both Contracting States, then the person's status shall be determined as follows:

         (a) the individual shall be deemed to be a resident only of the State in which a permanent home is available to that individual; but if a permanent home is available in both States, or in neither of them, that individual shall be deemed to be a resident only of the State with which the individual's personal and economic relations are closer (centre of vital interests);

         (b) if the State in which the centre of vital interests is situated cannot be determined, the individual shall be deemed to be a resident only of the State of which that individual is a national;

         (c) if the individual is a national of both States or of neither of them, the competent authorities of the Contracting States shall endeavour to resolve the question by mutual agreement.

    4. Where by reason of the provisions of paragraph 1 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.

    5. Where under the Agreement any income, profits or gains are relieved from tax in a Contracting State and, under the law in force in the other Contracting State, an individual in respect of such income, profits or gains is exempt from tax by virtue of being