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 in particular:
- (a) A place of management;
- (b) A branch;
- (c) An office;
- (d) A factory;
- (e) A workshop;
- (f) A mine, an oil or a gas well, a quarry or other place of extraction of natural resources.
(3) A construction site or assembly project where such site or project continues for a period exceeding 12 months.
(4) Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall be deemed not to include:
- (a) The use of facilities solely for the purposes of storage, display or delivery of goods or merchandise belonging to the enterprise;
- (b) The maintenance of stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
- (c) The maintenance of 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 collecting information for the enterprise;
- (e) The maintenance of fixed place of business solely for the purpose of carrying out other activities which have a preparatory or auxiliary character for the enterprise;
- (f) The maintenance of a fixed place of business solely for the purpose of carrying on any combination of activities mentioned in sub-paragraphs (a) through (e), provided that the overall activity of the enterprise resulting from this combination of activities is of a preparatory or auxiliary nature.
(5) Notwithstanding the provisions of paragraphs (1) and (2) of this Article, where a person-other than an agent of independent status to whom paragraph (6) applies-acts on behalf of an enterprise, and has, and habitually exercises, in a Contracting State, the authority to conclude contracts on behalf of the enterprise, then that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph (4), and which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment.
(6) An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, a general commission agent or any other agent of independent status, provided that such persons act in the ordinary course of their business.
(7) 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 be sufficient to constitute either company a permanent establishment of the other.