Definition of vital interests under tax treaties?

This term has a broader meaning than the idea of "center of economic interests" under French law. It expresses a weighting between personal and material (economic) factors. This weighting is intended to determine the place where the taxpayer has his or her essential family or professional interests.

The status of the «center of vital interests” is also determined based on a set of criteria. These criteria must be subject to a detailed analysis to determine tax residence. The facts must be examined to determine which of the two States has the closest personal ties to the individual in question. Consideration will be given to the individual’s family and social relationships, as well as his or her occupations and political, cultural, or other activities.

Areas of Interest as Seen by the Administration

These circumstances must be considered as a whole, without establishing a hierarchy between economic ties and personal ties.

According to the administration, even though the totality of circumstances must be examined, «circumstances related to the individual’s personal conduct should be given special consideration.» For example, «if a person who has a residence in one state establishes a second residence in another state. While retaining the first residence, the fact that they maintain this first residence in the community where they have always lived, where they have worked, and where they keep their family and all their possessions may, along with other factors, help demonstrate that they have retained the center of their vital interests in that first State.».

Generally speaking, it is important to take into account, particularly in cases where‘expatriation', the following: integration into local community life, daily living expenses, medical care, car registration, electricity and telephone usage, mail delivery, the address provided to various organizations—particularly social service agencies—registration on the voter rolls, credit card transactions…