Permanent establishment profit attribution may permit host state taxation and application of branch taxation under domestic law. Profits attributable to a permanent establishment include sales or similar business activities proved to have been used to avoid taxation where the permanent establishment was involved; such income is treated under the business profits article rather than the rules on interest, royalties or technical service fees. The host State may tax those profits, including by imposing an additional or branch profits tax under domestic law subject to an express cap. Production sharing contracts for oil and gas prevail over the Agreement where they conflict. Exchanged information may be used for other enforcement purposes only if permitted by both States' laws and authorised by the supplying State.
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 profit attribution may permit host state taxation and application of branch taxation under domestic law.
Profits attributable to a permanent establishment include sales or similar business activities proved to have been used to avoid taxation where the permanent establishment was involved; such income is treated under the business profits article rather than the rules on interest, royalties or technical service fees. The host State may tax those profits, including by imposing an additional or branch profits tax under domestic law subject to an express cap. Production sharing contracts for oil and gas prevail over the Agreement where they conflict. Exchanged information may be used for other enforcement purposes only if permitted by both States' laws and authorised by the supplying State.
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