ARTICLE 6
Permanent Establishment
(1) For the purposes of this Convention, the term "permanent establishment" means a fixed
place of business in which the business of an enterprise is wholly or partly carried on.
(2) The term "permanent establishment" shall include especially:
(a) A branch;
(b) An office;
(c) A factory;
(d) A workshop;
(e) A mine, quarry, or other place of extraction of natural resources;
(f) A building site or construction or assembly project which exists for more than
18 months.
(3) Notwithstanding paragraphs (1) and (2), a permanent establishment shall not include a
fixed place of business used only for one or more of the following:
(a) The use of facilities for the purpose of storage, display, or delivery of goods or
merchandise belonging to the enterprise;
(b) The maintenance of a stock of goods or merchandise belonging to the
enterprise for the purpose of storage, display, or delivery;
(c) The maintenance of a stock of goods or merchandise belonging to the
enterprise for the purpose of processing or reprocessing by another enterprise;
(d) The maintenance of a fixed place of business for the purpose of purchasing
goods or merchandise, or for collecting information, for the enterprise; or
(e) The maintenance of a fixed place of business for the purpose of advertising,
for the supply of information, for scientific research, or for similar activities which have a
preparatory or auxiliary character, for the enterprise.
(4) A person acting in a Contracting State on behalf of an enterprise of the other Contracting
State, other than an agent of an independent status to whom paragraph (5) applies, shall be
deemed to be a permanent establishment in the first-mentioned Contracting State if he has, and
habitually exercises in that State, an authority to conclude contracts in the name of the enterprise,
unless his activities are limited to the purchase of goods or merchandise for the 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 person is acting in the ordinary course of his business, whether or not such broker or
agent acts exclusively for one or more principals.
(6) An enterprise of one of the Contracting States shall not be deemed to have a permanent
establishment in the other Contracting State merely because such enterprise sells at the
termination of a trade fair in such other Contracting State goods or merchandise which such
enterprise displayed at such trade fair.
(7) 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 Contracting State (whether through a permanent establishment or
otherwise), shall not of itself constitute for either company a permanent establishment of the
other.