ARTICLE 5

Permanent Establishment

(1) For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise is wholly or partly carried on.

(2) The term "permanent establishment" includes 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 or assembly project which continues for a period of more than 12 months.

(3) 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 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 maintenance of a fixed place of business solely for the purpose of advertising, the supply of information, scientific research or similar activities of a preparatory or auxiliary character, for the enterprise.

(4) Where a person-other than an agent of an independent status to whom paragraph (5) applies-acts in a Contracting State on behalf of an enterprise of the other Contracting State, a permanent establishment shall be deemed to exist in the first-mentioned State if the person has and habitually exercises in that State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to the purchase of goods or merchandise 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.