background image

Iraq - Kuwait Tax Treaty (The Arab Economic Unity Council) (1973) — Orbitax Tax Hub

Note: This Treaty may be impacted by the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS (MLI). MLI impact on Tax Treaties is available with the Orbitax International Tax Research & Compliance Expert.

ARTICLE 4

Permanent Installation

(1) For the purposes of the instant treaty, the phrase "permanent installation" denotes the fixed place in which the project practices all or some of its activities:

(2) The phrase "permanent address" includes the following:

  • (a) Place of management.
  • (b) Branch.
  • (c) Office.
  • (d) Factory.
  • (e) Workshop.
  • (f) Mine, quarry, oil field or any other place for the extraction of natural resources.
  • (g) Plantation, field or store.
  • (h) Site of building or construction or assembly plant which existed for more than six (6) months.

(3) The phrase "permanent installation" does not include the following:

  • (a) Use of the special facilities for the purpose of storage or delivery of goods owned by the project or keeping the goods for the purpose of exhibition or delivery.
  • (b) Keeping the goods owned by the project for the purpose of operation only by another project.
  • (c) Keeping a fixed place of business that performs the purchase of goods or gathers information for the project.
  • (d) Keeping a fixed place of business that performs advertising, gives information, conducts scientific researches or any other similar activities of a preparatory or supplementary nature to the project.

(4) A person who works in one of the contracting states on behalf of a project affiliated to the other contracting state is deemed as permanent installation in such state if the person has the authority to enter into contracts on behalf of the project and if the person used to exercise such authority.