Article 4 - Resident

Article 4 defines who is a "resident" of each State for the purposes of the treaty. An individual or entity is a resident of a State if liable to tax there by reason of domicile, residence, place of management, or any similar criterion. Where a person is resident in both States, a tiebreaker rule resolves residence by reference to: (a) permanent home, (b) centre of vital interests, (c) habitual abode, and (d) nationality. Companies dual-resident are typically resolved by place of effective management (POEM); for India, POEM is determined under Section 6 of the IT Act 2025.