(1) For the purposes of this Convention, the term `permanent
establishment` means a fixed place of business in which the
business of the enterprise is wholly or partly carried on.
(2) The term `permanent establishment` shall include
especially:
(a) a place of management;
(b) a branch;
(c) an office;
(d) a factory;
(e) a workshop;
(f) a mine, quarry or other place of extraction of natural
resources;
(g) a building site or construction, installation or
assembly project which exists for more than six months.
(3) The term `permanent establishment` shall not be deemed to include:
(a) the use of facilities solely for the purpose of storage or
display 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 or
display;
(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 for collecting
information, for the enterprise;
(e) the maintenance of a fixed place of business solely for
the purpose of advertising, for the supply of information, for
scientific research or for similar activities which have a
preparatory or auxiliary character, for the enterprise.
(4) A person acting in one of the territories on behalf of an
enterprise of the other territory - other than an agent of an
independent status to whom the provisions of paragraph (5) of this
Article apply -shall be deemed to be a permanent establishment in
the first-mentioned territory if he has, and habitually exercises
in that territory, an authority to conclude contracts in the name
of the enterprise, unless his activities are limited to the
purchase of goods or merchandise for the enterprise.
(5) An enterprise of one of the territories shall not be
deemed to have a permanent establishment in the other territory
merely because it carries on business in that other territory
through a broker, general commission agent or any other agent of an
independent status, where such persons are acting in the ordinary
course of their business.
(6) The fact that a company which is a resident of one of the
territories controls or is controlled by a company which is a
resident of the other territory, or which carries on business in
that other territory (whether through a permanent establishment or
otherwise), shall not of itself constitute either company a
permanent establishment of the other.
