ARTICLE 5
Permanent Establishment
(1) For the purposes of this Convention, the term "permanent establishment" means a fixed place of business in which the business of the enterprise is wholly or partly carried on.
(2) The term "permanent establishment" shall include, among others:
- (a) an office or a place of business management;
- (b) a branch or agency;
- (c) a factory, plant or workshop for industry or assembly;
- (d) a mine, a quarry, or any other place of extraction of natural resources;
- (e) a construction or assembly project whose duration exceeds twelve-months.
(3) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State shall be deemed to constitute 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 good or merchandise for that 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, 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 merchandise or for collecting information for the enterprise;
- (e) the maintenance of a fixed place of business solely for the purpose of advertising, supplying information, scientific research or undertaking any other activities which have a preparatory or auxiliary character, for the enterprise.
(5) An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it undertakes activities through a broker, general commission agent, or any other agent of an independent status, provided such persons are acting in the ordinary course of their business, without affecting the tax liability of such broker, general commission agent or agent.
(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 (e), shall not of itself constitute either company a permanent establishment of the other.