(1) Profits of an enterprise of a country shall be taxable only in that country unless the enterprise carries on business in the other country through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits that are attributable to the permanent establishment in accordance with the provisions of paragraph (2) may be taxed in that other country.
(2) For the purposes of this Article and Article 21, the profits that are attributable in each country to the permanent establishment referred to in paragraph (1) are the profits it might be expected to make, in particular in its dealings with other parts of the enterprise, if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the enterprise through the permanent establishment and through the other parts of the enterprise.
(3) Where, in accordance with paragraph (2), a country adjusts the profits that are attributable to a permanent establishment of an enterprise of one of the countries and taxes accordingly profits of the enterprise that have been charged to tax in the other country, the other country shall, to the extent necessary to eliminate double taxation on these profits, make an appropriate adjustment if it agrees with the adjustment made by the first-mentioned country. If the other country does not so agree, the countries shall eliminate any double taxation resulting therefrom by mutual agreement.
(4) Where profits include items of income which are dealt with separately in other Articles of this Arrangement, then the provisions of those Articles shall not be affected by the provisions of this Article.