For the purposes of this Convention, the term
"permanent establishment" means a fixed place of business through
which the business of an enterprise is wholly or partly carried
on.
The term "permanent establishment" includes
especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop; and
(f) a mine, an oil or gas well, a quarry, or any other place
of extraction of natural resources.
A building site or construction or installation
project constitutes a permanent establishment only if it lasts for
more than twelve months.
Notwithstanding the preceding provisions of
this Article, the term "permanent establishment" shall be deemed
not to include:
(a) the use of facilities solely for the purpose of storage,
display or delivery of goods or merchandise belonging to the
enterprise;
(b) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of storage,
display or delivery;
(c) the maintenance of a stock of goods or merchandise
belonging to the enterprise solely for the purpose of processing by
another enterprise;
(d) the maintenance of a fixed place of business solely for
the purpose of purchasing goods or merchandise, or of collecting
information, for the enterprise;
(e) the maintenance of a fixed place of business solely for
the purpose of carrying on, for the enterprise, any other activity
of a preparatory or auxiliary character;
(f) the maintenance of a fixed place of business solely for
any combination of the activities mentioned in sub-paragraphs (a)
to (e) of this paragraph, provided that the overall activity of the
fixed place of business resulting from this combination is of a
preparatory or auxiliary character.
Notwithstanding the provisions of paragraphs 1
and 2 of this Article, where a person - other than an agent of an
independent status to whom paragraph 6 of this Article applies - is
acting on behalf of an enterprise and has and habitually exercises
in a Contracting State an authority to conclude contracts that are
binding on the enterprise, that enterprise shall be deemed to have
a permanent establishment in that State in respect of any
activities that the person undertakes for the enterprise, unless
the activities of such person are limited to those mentioned in
paragraph 4 of this Article that, if exercised through a fixed
place of business, would not make this fixed place of business a
permanent establishment under the provisions of that
paragraph.
An enterprise shall not be deemed to have a
permanent establishment in a Contracting State merely because it
carries on business in that State through a broker, general
commission agent, or any other agent of an independent status,
provided that such person is acting in the ordinary course of his
business as an independent agent.
The fact that a company that is a resident of a
Contracting State controls or is controlled by a company that is a
resident of the other Contracting State, or that carries on
business in that other State (whether through a permanent
establishment or otherwise), shall not constitute either company a
permanent establishment of the other.
