ARTICLE 5
Permanent establishment
1. For the purposes of this Convention, 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" shall include especially:
a) place of management;
b) a branch;
c) an office;
d) a factory;
e) a workshop;
f) premises used as a sales outlet or for receiving or soliciting orders;
g) a warehouse in relation to a person providing storage facilities for others;
h) a mine, an oil or gas well, quarry or other place of extraction of natural resources;
i) an installation or structure used for the exploration or exploitation of natural
resources;
k) the furnishing of services including managerial services, other than those taxable
under Article 13 (Royalties and fees for technical services), within a Contracting
State by an enterprise through employees or other personnel, but only if:
i. activities of that nature continue within that State for a period or periods
aggregating more than 90 days within any twelve-month period; or
ii. services are performed within that State for an enterprise within the
meaning of paragraph (1) of Article 10 (Associated enterprises) and
continue for a period or periods aggregating more than 30 days within any
twelve-month period.
Provided that for the purposes of this paragraph an enterprise shall be deemed to have a
permanent establishment in a Contracting State and to carry on business through that
permanent establishment if it provides services or facilities in connection with, or supplies
plant and machinery on hire used or to be used in, the prospecting for, or extraction or
production of, mineral oils in that State.
3. The term "permanent establishment" shall not be deemed to include:
a) the use of facilities solely for the purpose of storage or display of goods or
merchandise belonging to the enterprise;
b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely
for the purpose of storage or display;
c) the maintenance of a stock of goods or merchandise belonging 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 for collecting information, for the enterprise;
e) the maintenance of a fixed place of business solely for the purpose of advertising, for
the supply of information or for scientific research, being activities solely of a
preparatory or auxiliary character in the trade or business of the enterprise. However,
this provision shall not be applicable where the enterprise maintains any other fixed
place of business in the other Contracting State for any purpose or purposes other
than the purposes specified in this paragraph;
f) the maintenance of a fixed place of business solely for any combination of activities
mentioned in sub-paragraphs (a) to (e) of this paragraph, provided that the overall
activity of the fixed place of business resulting from this combination is of a
preparatory or auxiliary character.
a) he has, and habitually exercises in that State, an authority to negotiate and enter into
contracts for or on behalf of the enterprise, unless his activities are limited to the
purchase of goods or merchandise for the enterprise; or
b) he habitually maintains in the first-mentioned Contracting State a stock of goods or
merchandise from which he regularly delivers goods or merchandise for or on behalf
of the enterprise; or
c) he habitually secures orders in the first-mentioned State, wholly or almost wholly for
the enterprise itself or for the enterprise and other enterprises controlling, controlled
by, or subject to the same common control, as that enterprise.
5. 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 an independent status,
where such persons are acting in the ordinary course of their business. However, if the
activities of such an agent are carried out wholly or almost wholly for the enterprise (or for
the enterprise and other enterprises which are controlled by it or have a controlling interest in
it or are subject to the same common control) he shall not be considered to be an agent of an
independent status for the purposes of this paragraph.
6. 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 of itself
constitute either company a permanent establishment of the other.
7. For the purposes of this Article the term "control", in relation to a company means the ability
to exercise control over the company's affairs by means of the direct or indirect holding of
the greater part of the issued share capital or voting power in the company.