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128
United Nations—Treaty Series · Nations Unies—Recueil des Traités
1983

Article II. 1. In the present Convention, unless the context otherwise requires:

(a) The terms "one of the Contracting States" and "the other Contracting State" mean Israel or Italy as the context requires.

(b) The term "person" comprises an individual and any body of persons, corporate or not corporate.

(c) The term "company" means any body corporate or any entity which is treated as a body corporate for tax purposes.

(d) The terms "enterprise of one of the Contracting States" and "enterprise of the other Contracting State" mean respectively an enterprise carried on by a resident of one of the Contracting States and an enterprise carried on by a resident of the other Contracting State.

(e) (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 taxation therein by reason of his domicile, residence, place of management or any other similar criterion.

(2) Where by reason of the provisions of the preceding paragraph an individual is a resident of both Contracting States, then this case shall be solved in accordance with the following rules:

(i) He shall be deemed to be a resident of the Contracting 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 of the Contracting State with which his personal and economic relations are closest (centre of vital interests);
(ii) 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 of the Contracting State in which he has an habitual abode;
(iii) If he has an habitual abode in both Contracting States or in neither of them, the competent authorities of the Contracting States shall determine the question by mutual agreement.

(3) Where by reason of the provisions of paragraph 1 a legal person is a resident of both Contracting States, then it shall be deemed to be a resident of the Contracting State in which its place of effective management is situated. The same provision shall apply to partnerships and associations which are not legal persons under the national laws by which they are governed.

(f) (1) The term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on.

(2) A permanent establishment shall include especially:

(i) A place of management;
(ii) A branch;
(iii) A factory;
(iv) An office;
(v) A workshop;

Vol. 1332. I-22351

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