Permanent establishment threshold clarified to begin when the project commences, excluding preparatory delays; nondiscrimination and beneficial domestic law rules affirmed. The Protocol clarifies that the time limit for Article 5(3)(a) begins when a construction, installation or assembly project or supervisory activity itself begins, excluding preparatory activities and time taken to obtain licences; confirms that Article 24's nondiscrimination clause does not preclude India from applying a higher tax rate to profits attributable to a permanent establishment of an Ethiopian company than to a similar domestic company nor conflict with Article 7(3); and provides that a Contracting State's domestic law more beneficial to a resident of the other State shall apply to the extent it is more favourable.
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Provisions expressly mentioned in the judgment/order text.
Permanent establishment threshold clarified to begin when the project commences, excluding preparatory delays; nondiscrimination and beneficial domestic law rules affirmed.
The Protocol clarifies that the time limit for Article 5(3)(a) begins when a construction, installation or assembly project or supervisory activity itself begins, excluding preparatory activities and time taken to obtain licences; confirms that Article 24's nondiscrimination clause does not preclude India from applying a higher tax rate to profits attributable to a permanent establishment of an Ethiopian company than to a similar domestic company nor conflict with Article 7(3); and provides that a Contracting State's domestic law more beneficial to a resident of the other State shall apply to the extent it is more favourable.
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