Permanent establishment: fixed-place, activity and agent rules define tax nexus and temporal thresholds for treaty PE status. A permanent establishment is a fixed place of business through which an enterprise conducts business, with examples including management, branch, office, factory, warehouse, sales premises and resource extraction sites. Activity-based PEs arise for construction or installation projects and drilling rigs used beyond 183 days, and for services furnished through personnel aggregating more than 91 days in any twelve-month period. Preparatory or auxiliary activities, storage, display, purchasing, information collection and maintained stocks for processing are excluded. Agency rules attribute PE where non-independent agents habitually conclude contracts, maintain delivery stock, or secure orders almost wholly for the enterprise. Insurance PE arises when premiums are collected or risks insured through non-independent agents.
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, activity and agent rules define tax nexus and temporal thresholds for treaty PE status.
A permanent establishment is a fixed place of business through which an enterprise conducts business, with examples including management, branch, office, factory, warehouse, sales premises and resource extraction sites. Activity-based PEs arise for construction or installation projects and drilling rigs used beyond 183 days, and for services furnished through personnel aggregating more than 91 days in any twelve-month period. Preparatory or auxiliary activities, storage, display, purchasing, information collection and maintained stocks for processing are excluded. Agency rules attribute PE where non-independent agents habitually conclude contracts, maintain delivery stock, or secure orders almost wholly for the enterprise. Insurance PE arises when premiums are collected or risks insured through non-independent agents.
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