The term "permanent establishment" means a fixed place of business at which an enterprise conducts all or part of its business.
(a) The following, in particular, shall be deemed to be permanent establishments:
- (aa) a management office;
- (bb) a branch;
- (cc) an office;
- (dd) a factory;
- (ee) a workshop;
- (ff) a mine, quarry or other place of extraction of natural resources;
- (gg) a building or assembly site;
- (hh) a fixed place of business used for the purpose of storage, display and delivery of goods belonging to the enterprise;
- (ii) a warehouse where goods belonging to the enterprise are kept for the purpose of storage, display and delivery;
- (jj) a fixed place of business used for the purpose of purchasing goods or for collecting information which is the actual object of the business of the enterprise;
- (kk) a fixed place of business used for advertising purposes.
(b) The term "permanent establishment" shall not be deemed to apply if:
- (aa) Goods belonging to the enterprise are being held for the sole purpose of processing by another enterprise;
- (bb) A fixed place of business is used solely for the purpose of supplying information, for scientific research or for similar activities which,so far as the enterprise is concerned, are preparatory in character.
(c) A person acting in a Contracting State on behalf of an enterprise of the other Contracting State-other than an agent of independent status within the meaning of paragraph (e) below-shall be deemed to be a "permanent establishment" in the former State if he has and habitually exercises in that State authority to conclude contracts in the name of the enterprise.
Such authority shall, in particular, be deemed to be exercised by an agent who habitually has available to him in the former Contracting State a stock of products or goods belonging to the enterprise from which he regularly fills orders received by him on behalf of the enterprise.
(d) An insurance enterprise of a Contracting State shall be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that State or insures risks situated therein through a representative who is not an agent within the meaning of paragraph (e) below.
(e) An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of independent status if such persons are acting in the ordinary course of their business.
However, if the agent whose services are used has available to him a stock of goods on consignment from which the sales and deliveries are made, such stock shall be deemed to imply the existence of a permanent establishment of the enterprise.
(f) The fact that a company domiciled in a Contracting State controls or is controlled by a company which is domiciled in the other Contracting State or which carries on business in that State (whether through a permanent establishment or otherwise) shall not of itself make either company a permanent establishment of the other.