Permanent establishment rules define when a foreign enterprise's fixed presence or sustained services create taxable presence under a tax treaty. The Article defines permanent establishment as a fixed place of business through which an enterprise's business is wholly or partly carried on, listing typical forms and treating prolonged construction projects and sustained service provision through personnel as creating a permanent establishment. It excludes fixed places used solely for preparatory or auxiliary activities such as storage, display, purchasing, or stock maintenance for processing by others. Agency rules deem a permanent establishment to exist where a person habitually concludes contracts, maintains delivery stock, or secures orders for the enterprise, unless that person is an independent agent; insurance premium collection or risk insurance through non-independent persons also creates a permanent establishment.
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Provisions expressly mentioned in the judgment/order text.
Permanent establishment rules define when a foreign enterprise's fixed presence or sustained services create taxable presence under a tax treaty.
The Article defines permanent establishment as a fixed place of business through which an enterprise's business is wholly or partly carried on, listing typical forms and treating prolonged construction projects and sustained service provision through personnel as creating a permanent establishment. It excludes fixed places used solely for preparatory or auxiliary activities such as storage, display, purchasing, or stock maintenance for processing by others. Agency rules deem a permanent establishment to exist where a person habitually concludes contracts, maintains delivery stock, or secures orders for the enterprise, unless that person is an independent agent; insurance premium collection or risk insurance through non-independent persons also creates a permanent establishment.
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