ARTICLE 4

Residence

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

a) in the case of the United States, any person who, under the laws of the United States, is liable to tax therein by reason of his domicile, residence, citizenship, place of incorporation, or any other criterion of a similar nature. The term includes an individual who is a United States citizen or an alien lawfully admitted to the United States for permanent residence (a “green card” holder) and who is not a resident of Venezuela under paragraph 1 b) only if the individual has a permanent home or habitual abode in the United States.

b) in the case of Venezuela, any resident individual (“ domiciliado ”), any legal person that is created or organized under the laws of Venezuela, and any entity or collectivity (“ entidad o colectividad ”) formed under the laws of Venezuela which is not a legal person but is subject to the taxation applicable to corporations in Venezuela.

2. An item of income, profit or gain derived through an entity that is fiscally transparent under the laws of either Contracting State shall be considered to be derived by a resident of a

State to the extent that the item is treated for purposes of the taxation law of such Contracting State as the income, profit or gain of a resident.

3. Where by reason of the provisions of paragraph 1, an individual is a resident of both Contracting States, then his status shall be determined as follows:

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

b) if the State in which he has his center of vital interests cannot be determined, or if he does not have a permanent home available to him in either State, he shall be deemed to be a resident of the State in which he has an habitual abode;

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

d) if he is a national of both States or of neither of them, the competent authorities of the Contracting States shall endeavor to settle 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, the competent authorities of the Contracting States shall endeavor to settle the question by mutual agreement and determine the mode of application of the Convention to such person. If they are unable to make such a determination, such person shall not be considered a resident of either Contracting State for purposes of enjoying benefits under this Convention.