1. For the purposes of this Agreement, the term “permanent
establishment” means a fixed place of business through which
the business of an enterprise is wholly or partly carried on.
2. The term “permanent establishment” includes 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 ex-
traction of natural resources.
3. A building site or construction, assembly, or installation
project or supervisory activities in connection therewith, con -
stitute a permanent establishment but only where such site,
project or activities continue for a period of more than 9 months.
4. Notwithstanding the preceding provisions of this Article, the
term “permanent establishment” shall be deemed not to include:
a) the use of facilities solely for the purpose of storage, display
or delivery of goods or merchandise belonging to the enter-
prise;
b) the maintenance of a stock of goods or merchandise be -
longing to the enterprise solely for the purpose of storage,
display or delivery;
c) the maintenance of a stock of goods or merchandise be -
longing to the enterprise solely for the purpose of processing
by another enterprise;
d) the maintenance of a fixed place of business solely for the
purpose of purchasing goods or merchandise or of collecting
information, for the enterprise;
e) the maintenance of a fixed place of business solely for the
purpose of carrying on, for the enterprise, any other activity
of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any
combination of activities mentioned in subparagraphs a) to e),
provided that the overall activity of the fixed place of business
resulting from this combination is of a preparatory or auxiliary
character.
5. Notwithstanding the provisions of paragraphs 1 and 2,
where a person – other than an agent of an independent status
to whom paragraph 6 applies – is acting on behalf of an enter-
prise and has, and habitually exercises, in a Contracting State an
authority to conclude contracts in the name of the enterprise,
that enterprise shall be deemed to have a permanent establish-
ment in that State in respect of any activities which that person
undertakes for the enterprise, unless the activities of such person
are limited to those mentioned in paragraph 4 which, if exercised
through a fixed place of business, would not make this fixed
place of business a permanent establishment under the provi-
sions of that paragraph.
6. An enterprise shall not be deemed to have a permanent es-
tablishment in a Contracting State merely because it carries on
business in that 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.
7. The fact that a company which is a resident of a Contract-
ing State controls or is controlled by a company which is a resi-
dent of the other Contracting State, or which carries on business
in that other State (whether through a permanent establishment
or otherwise), shall not of itself constitute either company a per-
manent establishment of the other.