ARTICLE 4
Resident
1. For the purposes of this Convention, the term "resident of a Contracting State" means any
person who, under the laws of that State, is liable to tax therein by reason of his domicile,
residence, place of management, place of incorporation, or any other criterion of a similar nature.
But this term does not include any person who is liable to tax in that State in respect only of
income from sources in that State, or of capital situated therein.
2. (a) France shall consider a U.S. citizen or an alien admitted to the United States
for permanent residence (a "green card" holder) to be a resident of the United States for
the purposes of paragraph 1 only if such individual has a substantial presence in the
United States or would be a resident of the United States and not of a third State under
the principles of subparagraphs (a) and (b) of paragraph 3.
(b) The term "resident of a Contracting State" includes:
(i) that State, a political subdivision (in the case of the United States) or
local authority thereof, and any agency or instrumentality of such State,
subdivision, or authority;
(ii) a pension trust and any other organization established in that State and
maintained exclusively to administer or provide retirement or employee benefits
that is established or sponsored by a person that is a resident of that State under
the provisions of this Article; and any not-for-profit organization established and
maintained in that State, provided that the laws of such State or (in the case of the
United States) a political subdivision thereof limit the use of the organization’s
assets, both currently and upon the dissolution or liquidation of such organization,
to the accomplishment of the purposes that serve as the basis for such
organization’s exemption from income tax; notwithstanding that all or part of the
income of such trust, other organization, or not-for-profit organization may be
exempt from income taxation in that State;
(iii) in the case of the United States, a regulated investment company, a
real estate investment trust, and a real estate mortgage investment conduit; in the
case of France, a "société d'investissement a capital variable" and a "fonds
commun de placement"; and any similar investment entities agreed upon by the
competent authorities of both Contracting States;
(iv) a partnership or similar pass-through entity, an estate, an trust (other
than one referred to in subparagraph (ii) or (iii) above), but only to the extent that
the income derived by such partnership, similar entity state, or trust is subject to
tax in the Contracting State as the income of a resident, either in the hands of such
partnership, entity, estate, or trust or in the hands of its partners, beneficiaries, or
grantors, it being understood that a "société de personnes," a "groupement d'intérêt
économique" (economic interest group), or a "groupement européen d'intérêt
économique" (European economic interest group) that is constituted in France and
has its place of effective management in France and that is not subject to company
tax therein shall be treated as a partnership for purposes of United States tax
benefits under this Convention.
3. Where, by reason of the provisions of paragraphs 1 and 2, an individual is a resident of
both Contracting States, 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 Contracting
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 settle the question by mutual agreement.
4. Where, by reason of the provisions of paragraphs 1 and 2, a person other than an individual
is a resident of both Contracting States, the competent authorities shall endeavor to settle the
question by mutual agreement, having regard to the person’s place of effective management, the
place where it is incorporated or constituted, and any other relevant factors. In the absence of
such agreement, such person shall not be considered to be a resident of either Contracting State
for purposes of enjoying benefits under this Convention.