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Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 6

Permanent Establishment

(1) For the purposes of this Convention, the term "permanent establishment" shall mean the fixed place of business through which the enterprise, wholly or in part, is being operated.

(2) The term "permanent establishment" shall, in particular, include:

  • (a) a workplace for the management;
  • (b) a branch;
  • (c) an office;
  • (d) a factory;
  • (e) a workshop;
  • (f) a mine, oil or gas well, quarry or any other area used to explore or extract natural resources and any related activities including the exploration site at sea;

(3) A building or construction site, an assembly or installation project, supervisory actions related thereto, drilling station or ship used to explore or exploit natural resources, provided that such site, project or business shall be operated for a period that exceeds six months.

(4) Provision providing services, including consultancy services, by an enterprise of a Contracting State through employees or other personnel engaged by the enterprise for this purpose in the other Contracting State in the form of a permanent establishment only, provided that such type of business shall be lasting for a period or periods that exceed (6) months.

(5) Notwithstanding the previous provisions stipulated in this Article, the term “permanent establishment” shall not include:

  • (a) the use of facilities only 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 for the purpose of storage or display or delivery only;
  • (c) the maintenance of a stock of goods or merchandise belonging to the enterprise for the purpose of processing by another enterprise;
  • (d) the maintenance of a fixed place of business for the purpose of purchasing goods or merchandise, or collecting information for the enterprise;
  • (e) the maintenance of a fixed place of business for the purpose of advertising, providing data, conducting scientific researches or carrying out activities of preparatory or auxiliary nature
  • (f) the maintenance of a fixed place of business for the purpose of carrying out activities of preparatory or auxiliary nature.
  • (g) the maintenance of a fixed place of business only for the purpose of combination of any of the activities abovementioned in sub-paragraphs (a) and (e) hereof, provided that such activities of preparatory or auxiliary nature.

(6) Notwithstanding the provisions of paragraphs (1) and (2) where a person, other than an independent agent, to whom paragraph (6) applies, carries out his business in a Contracting State on behalf of an enterprise and he has the authority to conclude contracts in the name of that enterprise, such enterprise shall be deemed a permanent establishment in that Contracting State, in respect of any activities practiced by that person for the benefit of that enterprise, unless these activities are limited to those mentioned in paragraph (4) of this Article and if it is exercised through a fixed place of business, which makes that fixed base a permanent establishment under the provisions of that paragraph.

(7) An enterprise in one of the Contracting States shall not be deemed to have a permanent establishment in the other Contracting State merely as that enterprise carries out business in that other State through a broker, general commission agent, or any other independent agent, provided that such broker or agent is acting in the ordinary course of their business.

(8) If a company, which is located in one of the Contracting States, controls or is controlled by another company which is located in the other Contracting State, or carries out business in that other State, whether through a permanent establishment or otherwise, both companies shall not be deemed a permanent establishment.