ARTICLE 5
Permanent Establishment
(1) Within the meaning of the present Convention, the term "permanent establishment" means a fixed place of business through which an enterprise exercises its business wholly or partly.
(2) The term "permanent establishment" includes especially:
- (a) a place of management;
- (b) a branch;
- (c) a shop;
- (d) an office;
- (e) a factory;
- (f) a workshop;
- (g) a mine, a quarry or any other place of extraction of natural resources; and
- (h) building site of construction or assembly site whose duration exceeds six 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 of goods;
- (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 collecting information, for the enterprise;
- (e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity that has a preparatory or auxiliary character.
(4) A person acting for a Contracting State on behalf of an enterprise of the other Contracting State other that an agent enjoying an independent status, cited in paragraph (5) 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 the activities of that person are limited to the purchase of goods and merchandise for the enterprise.
(5) An enterprise is not regarded as having a permanent establishment in a Contracting State only on the fact that it carries on there its activity through a broker, a general commission agent or any other agent enjoying an independent status, provided that such persons act in the ordinary course of their business.
(6) Where an enterprise which is a resident of a Contracting State controls or is controlled by an enterprise which is a resident of the other Contracting State where it carries on its business (whether or not through a permanent establishment) shall not of itself constitute either enterprise a permanent establishment of the other.