Definition of "Permanent Establishment" Includes Fixed Business Locations and Long-term Projects Over Six Months

The statutory provisions define "permanent establishment" as a fixed place of business where an enterprise conducts its operations, either wholly or partially. It includes places like management offices, branches, factories, and mines. Construction projects or service activities lasting over six months or 182 days, respectively, also qualify. However, activities solely for storage, display, or auxiliary purposes do not constitute a permanent establishment. An enterprise may have a permanent establishment if a person in a contracting state habitually concludes contracts or manages goods on its behalf. Insurance enterprises collecting premiums or insuring risks in another state are also deemed to have a permanent establishment, except for re-insurance. Agents acting independently do not create a permanent establishment unless their activities are almost exclusively for the enterprise. Control between companies in different states does not automatically establish a permanent establishment.