ARTICLE 5
Permanent Establishment
(1) For the purposes of this Convention, the term "permanent establishment" refers to a fixed place of business through which the business of an enterprise is wholly or partly carried on.
(2) The term "permanent establishment" includes in particular the following:
- (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.
(3) A construction or assembly site shall only be deemed a permanent establishment as long as its duration exceeds 12 months.
(4) Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include the following:
- (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 use of a fixed place of business for the enterprise, for the sole purpose of advertising, for the supply of information, of scientific research or for similar activities of a preparatory or auxiliary nature;
- (f) the management of an assembly site by an enterprise of a Contracting State in the other Contracting State in connection with the delivery of machinery or equipment manufactured by that enterprise;
- (g) the use of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (f) of this Article, provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
(5) Notwithstanding the provisions of paragraphs (1) and (2), 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 enter into contracts on behalf of the enterprise, that enterprise shall be deemed to have a permanent establishment in that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph (4) of this Article which, 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.
(6) 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 persons are acting in the ordinary course of their business.
(7) The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself suffice to constitute either company a permanent establishment of the other.