## ARTICLE V
Permanent Establishment
- 1 For the purposes of this Convention, the term permanent establishment means a fixed place of business through which the business of a resident of a Contracting State is wholly or partly carried on.
- 2 The term permanent establishment shall include especially:
- (a) A place of management;
- (b) A branch;
- (c) An office;
- (d) A factory;
- (e) A workshop; and
- (f) A mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
- 3 A building site or construction or installation project constitutes a permanent establishment if, but only if, it lasts more than 12 months.
- 4 The use of a drilling rig or ship in a Contracting State to explore for or exploit natural resources constitutes a permanent establishment if, but only if, such use is for more than 3 months in any twelve-month period.
- 5 A person acting in a Contracting State on behalf of a resident of the other Contracting State - other than an agent of an independent status to whom paragraph 7 applies - shall be deemed to be a permanent establishment in the first-mentioned State if such person has, and habitually exercises in that State, an authority to conclude contracts in the name of the resident.
- 6 Notwithstanding the provisions of paragraphs 1, 2, and 5, the term permanent establishment shall be deemed not to include a fixed place of business used solely for, or a person referred to in paragraph 5 engaged solely in, one or more of the following activities:
- (a) The use of facilities for the purpose of storage, display or delivery of goods or merchandise belonging to the resident;
- (b) The maintenance of a stock of goods or merchandise belonging to the resident for the purpose of storage, display or delivery;
- (c) The maintenance of a stock of goods or merchandise belonging to the resident for the purpose of processing by another person;
- (d) The purchase of goods or merchandise, or the collection of information, for the resident; and
- (e) Advertising, the supply of information, scientific research or similar activities which have a preparatory or auxiliary character, for the resident.
- 7 A resident of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because such resident carries on business in that other State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.
- 8 The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not constitute either company a permanent establishment of the other.
- 9 For the purposes of the Convention, the provisions of this Article shall be applied in determining whether any person has a permanent establishment in any State.