Permanent establishment rules limit taxation of business profits to the resident State unless attributable to a local permanent establishment. Profits of an enterprise are taxable only in its State of residence unless it carries on business in the other State through a Permanent Establishment, in which case only profits attributable to that permanent establishment may be taxed there. Profits attributable are determined as if the permanent establishment were a separate enterprise operating under similar conditions, allowing deductions for expenses incurred for the permanent establishment in accordance with that State's tax laws. Customary apportionment of total profits may be used if consistent with the Article, purchases of goods alone do not create attributable profits, and the method of attribution should be applied year by year unless reasons justify change.
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 limit taxation of business profits to the resident State unless attributable to a local permanent establishment.
Profits of an enterprise are taxable only in its State of residence unless it carries on business in the other State through a Permanent Establishment, in which case only profits attributable to that permanent establishment may be taxed there. Profits attributable are determined as if the permanent establishment were a separate enterprise operating under similar conditions, allowing deductions for expenses incurred for the permanent establishment in accordance with that State's tax laws. Customary apportionment of total profits may be used if consistent with the Article, purchases of goods alone do not create attributable profits, and the method of attribution should be applied year by year unless reasons justify change.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
