Permanent establishment: fixed place or dependent agent activity can create taxable presence, with specific exclusions for auxiliary activities. A permanent establishment is a fixed place of business through which an enterprise carries on business, including management, branches, offices, factories, workshops, sales outlets, warehouses for storage for others, agricultural sites, and extraction sites. Construction or installation projects and furnishing of services through personnel create a permanent establishment only when they exceed specified duration thresholds. Exclusions include use of facilities solely for storage/display, maintenance of stock for storage/display or processing by another, purchasing or information gathering premises, and preparatory or auxiliary activities. Dependent agents with authority to conclude contracts, maintaining stock for delivery, or securing orders predominantly for the enterprise create a permanent establishment, while independent agents acting in the ordinary course of business do not. Corporate control alone does not constitute a permanent establishment.
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 or dependent agent activity can create taxable presence, with specific exclusions for auxiliary activities.
A permanent establishment is a fixed place of business through which an enterprise carries on business, including management, branches, offices, factories, workshops, sales outlets, warehouses for storage for others, agricultural sites, and extraction sites. Construction or installation projects and furnishing of services through personnel create a permanent establishment only when they exceed specified duration thresholds. Exclusions include use of facilities solely for storage/display, maintenance of stock for storage/display or processing by another, purchasing or information gathering premises, and preparatory or auxiliary activities. Dependent agents with authority to conclude contracts, maintaining stock for delivery, or securing orders predominantly for the enterprise create a permanent establishment, while independent agents acting in the ordinary course of business do not. Corporate control alone does not constitute a permanent establishment.
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