Permanent establishment rules establish taxable nexus where a fixed place or dependent agent conducts business presence. Permanent establishment arises when an enterprise of one Contracting State carries on business in the other through a fixed place of business or through persons whose activities create a taxable presence. Fixed places include management offices, branches, factories, workshops, sales outlets, warehouses for third-party storage, agricultural and resource extraction sites. Construction, installation or assembly projects and service provision by personnel become permanent establishments when carried on beyond prescribed temporal thresholds. Exclusions apply for purely preparatory or auxiliary activities and for independent agents acting in the ordinary course of business; dependent agents and certain insurance activities may 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 rules establish taxable nexus where a fixed place or dependent agent conducts business presence.
Permanent establishment arises when an enterprise of one Contracting State carries on business in the other through a fixed place of business or through persons whose activities create a taxable presence. Fixed places include management offices, branches, factories, workshops, sales outlets, warehouses for third-party storage, agricultural and resource extraction sites. Construction, installation or assembly projects and service provision by personnel become permanent establishments when carried on beyond prescribed temporal thresholds. Exclusions apply for purely preparatory or auxiliary activities and for independent agents acting in the ordinary course of business; dependent agents and certain insurance activities may create a permanent establishment.
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