(1) Income from industrial mining, commercial or financial enterprises shall be taxable only in the State in which a permanent establishment is situated.
(2) When an enterprise has permanent establishments in both Contracting States, each State may tax only the income derived from the operations of the permanent establishments situated in its territory.
(3) Taxable income may not exceed the amount of the industrial, mining, commercial or financial profits made by the permanent establishment, including, if applicable, any profits or advantages derived indirectly from that establishment or assigned or granted to third parties by either increasing or decreasing purchase or selling prices or any other means.
(4) A fraction of the overhead expenses of the head office of the enterprise shall be charged against the earnings of the individual permanent establishments in proportion to their turnovers.
When in the conditions set out above, the overhead expenses of the head office are such that a normal profit is not yielded, the competent authorities of the two States may, with due regard for the provisions of Article 41 of the Convention, make the adjustments necessary to determine the profit of the permanent establishment.
The same procedure shall apply when the said apportionment would lead to the assignment to the permanent establishment in one of the two States of a fraction substantially higher than that which would result from the application of the internal legislation of that State.
(5) If taxpayers with business in both Contracting States do not keep regular accounts showing separately and exactly the profits accruing to the permanent establishments situated in each State, the amount of profit taxable by each State may be determined by apportioning the total earnings in proportion to the turnover realized in each of them.
(6) If one of the establishments situated in either Contracting State realizes no turnover or if the business carried on in the two States is not comparable, the competent authorities of the two States shall co-operate to establish the manner in which paragraphs (4) and (5) are to be applied.