Permanent establishment: fixed place and dependent agent criteria can create taxable presence despite auxiliary activities. Permanent establishment is a fixed place of business through which an enterprise's business is carried on, including management, branch, office, factory, workshop, sales outlet, warehouses for storage services, agricultural sites and resource extraction. Building sites and construction or assembly projects become a permanent establishment if they exceed a specified duration; furnishing services through personnel becomes a permanent establishment when activities for the same or connected project continue beyond an aggregate threshold within any 12 month period. Dependent agents with authority to conclude contracts, agents maintaining stock for regular delivery, or agents habitually securing orders can create a permanent establishment, while independent agents acting in the ordinary course do not. Exclusions cover solely preparatory or auxiliary activities; insurance enterprises and control by related companies are addressed by separate rules.
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: fixed place and dependent agent criteria can create taxable presence despite auxiliary activities.
Permanent establishment is a fixed place of business through which an enterprise's business is carried on, including management, branch, office, factory, workshop, sales outlet, warehouses for storage services, agricultural sites and resource extraction. Building sites and construction or assembly projects become a permanent establishment if they exceed a specified duration; furnishing services through personnel becomes a permanent establishment when activities for the same or connected project continue beyond an aggregate threshold within any 12 month period. Dependent agents with authority to conclude contracts, agents maintaining stock for regular delivery, or agents habitually securing orders can create a permanent establishment, while independent agents acting in the ordinary course do not. Exclusions cover solely preparatory or auxiliary activities; insurance enterprises and control by related companies are addressed by separate rules.
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