Permanent establishment definition sets thresholds for fixed place, services, and agent activities triggering tax presence under treaty. Permanent establishment is a fixed place of business through which an enterprise carries on business, with specified examples; preparatory or auxiliary activities such as storage, display, purchasing or information gathering are excluded. Construction sites and service activities give rise to a permanent establishment only when they exceed the duration threshold. Agency rules deem a dependent agent who can conclude contracts, maintains stock for delivery, or habitually secures orders to create a permanent establishment, while independent agents acting in the ordinary course do not, and insurance agencies through non-independent persons also create 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 definition sets thresholds for fixed place, services, and agent activities triggering tax presence under treaty.
Permanent establishment is a fixed place of business through which an enterprise carries on business, with specified examples; preparatory or auxiliary activities such as storage, display, purchasing or information gathering are excluded. Construction sites and service activities give rise to a permanent establishment only when they exceed the duration threshold. Agency rules deem a dependent agent who can conclude contracts, maintains stock for delivery, or habitually secures orders to create a permanent establishment, while independent agents acting in the ordinary course do not, and insurance agencies through non-independent persons also create a permanent establishment.
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