Permanent establishment rules determine when cross-border business activities create taxable presence under DTAA, including agency and service thresholds. Permanent establishment arises where an enterprise carries on business through a fixed place in the other Contracting State, including management, branch, office, factory, workshop, sales outlet, warehouse, agricultural or extraction sites, but excluding premises used solely for storage, display, purchasing, processing by others, information collection, or other preparatory or auxiliary activities. Dependent agents with contracting authority, habitual stock maintenance for delivery, or habitually securing orders, service provision by personnel over an aggregated period, construction projects beyond a temporal threshold, and insurance activities through non-independent persons can create a permanent establishment; independent agents and mere cross control do not.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Permanent establishment rules determine when cross-border business activities create taxable presence under DTAA, including agency and service thresholds.
Permanent establishment arises where an enterprise carries on business through a fixed place in the other Contracting State, including management, branch, office, factory, workshop, sales outlet, warehouse, agricultural or extraction sites, but excluding premises used solely for storage, display, purchasing, processing by others, information collection, or other preparatory or auxiliary activities. Dependent agents with contracting authority, habitual stock maintenance for delivery, or habitually securing orders, service provision by personnel over an aggregated period, construction projects beyond a temporal threshold, and insurance activities through non-independent persons can create a permanent establishment; independent agents and mere cross control do not.
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