ARTICLE 5

Permanent Establishment

(1) For the purposes of this Convention, the term "permanent establishment" means a fixed place of business that is used for the carrying on of a business activity for profit-making purposes.

(2) The term "permanent establishment" includes, inter alia:

• (a) An office or place of business management or administration;
• (b) Branches or agencies;
• (c) A factory, plant or industrial or assembly workshop or agricultural establishment;
• (d) Mines, quarries or other places of extraction of natural resources;
• (e) A building site or construction or assembly project which continues for more than six months.

(3) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State shall be deemed to be a permanent establishment in the first-mentioned State if he has, and habitually exercises in that State, 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.

(4) 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, delivery, or processing by another enterprise;
• (c) The maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information for the enterprise;
• (d) 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.

(5) An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other 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.

(6) 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 constitute either company a permanent establishment of the other.