Franco-Brazilian tax agreement: the criterion of the place of residence specified
In a decision made on the 16th of July 2020, the Council of State clarified the criterion of the place of habitual residence. This must be assessed in terms of the frequency, duration and regularity of stays in this State, which are part of the normal rhythm of life of the person and are more than transitory, without there being any need to determine whether the total duration of the stays exceeds half a year.
Thus, a taxpayer may be qualified as a resident on the basis of the criterion of the usual place of residence even if the total duration of the stays is less than or equal to 183 days per year.
This ruling is in line with the OECD Commentary on the Model Convention. Thus, this solution is transposable to all conventions that define residency status in accordance with Article 4 of the OECD model convention.
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