ARTICLE 5
Permanent Establishment
(1) For the purpose of this Convention the term "permanent establishment" shall mean a fixed place of business through which the business of an enterprise is wholly or partially carried out.
(2) The term "permanent establishment", shall include, in particular:
- (a) a place of management,
- (b) a branch,
- (c) an office,
- (d) a factory,
- (e) a workshop and
- (f) a mine, oil or gas well, a quarry or any other place related to the exploration, exploitation or extraction of natural resources.
(3) A construction site or a building, assembly or installation project, or supervisory activity connected with it provided that such a permanent establishment or the duration of work on such site or project exceeds 12 months.
(4) Notwithstanding the preceding provisions of this Article, the term "permanent establishment" shall not include:
- (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise, belonging to an enterprise;
- (b) the maintenance of a stock of goods or merchandise, belonging to an enterprise, exclusively for the purpose of storage, display or supply;
- (c) the maintenance of a stock of goods or merchandise belonging to an enterprise, exclusively 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 carrying on, for the enterprise, any other activity of a preparatory or auxiliary nature;
- (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) to (e) provided that the overall activity of the fixed place of business resulting from such combination of activities is of a preparatory or auxiliary nature.
(5) Notwithstanding the provisions of paragraph (1) and (2) of this Article, if a person-other than an agent of independent status, to whom paragraph (6) of this Article 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) of this Article, and which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph.
(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, general commission agent or any other agent of independent status, provided that such persons are acting in the ordinary course of their business.
(7) The fact that a company, that is a resident of a Contracting State, controls or is controlled by a company being a resident of the other Contracting State or which carries on business in such other State (through a permanent establishment or otherwise) shall not of itself be sufficient to constitute either company a permanent establishment of the other.