Profits of Enterprises
(1) The profits of an enterprise of a Contracting State shall not be taxable in the other Contracting State unless the enterprise carries on business in the said other Contracting State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise shall be taxable in the other State but only so much of them as is attributable to that permanent establishment.
(2) Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.
(3) In the determination of the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.
(4) In so far as it is customary in a Contracting State to determine the profits to be attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, nothing in paragraph (2) shall preclude that Contracting State from determining the profits to be taxed by such an apportionment as may be customary; the method of apportionment adopted shall, however, be such that the result is in accordance with the principles laid down in this Article.
(5) Without prejudice to the provisions of Article 5, paragraph (7), no profit shall be attributed to a permanent establishment on the sole ground that it purchases goods or merchandise for the enterprise.
(6) In the application of paragraphs (1) to (5), the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to proceed in a different manner.
(7) Where a resident of the Federal Republic of Germany has a permanent establishment in the Argentine Republic, the Argentine tax on the profits of the said permanent establishment, irrespective of whether the tax is collected from the permanent establishment itself, from the resident of the Federal Republic of Germany or from both, shall not exceed the tax which under Argentine law is levied on the profits of a company which is a resident of the Argentine Republic plus 15 per cent of such profits, determined after deduction of the said tax on the profits of a company.
(8) Where profits include income which is dealt with separately in other Articles of this Convention, the provisions of those Articles shall not be affected by the provisions of this Article.