Permanent establishment principle limits taxation to profits attributable to the permanent establishment under separate enterprise rules. Profits are taxable only in the enterprise's State of residence unless business is carried on in the other Contracting State through a permanent establishment, in which case only profits attributable to that permanent establishment may be taxed there. Such profits are attributed on the separate enterprise basis, with deductions allowed for expenses incurred for the purposes of the permanent establishment subject to the host State's tax law; intercompany charges (other than reimbursements) such as royalties, fees, commissions, management charges and, except for banking, interest are not deductible or recognized in profit attribution.
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 principle limits taxation to profits attributable to the permanent establishment under separate enterprise rules.
Profits are taxable only in the enterprise's State of residence unless business is carried on in the other Contracting State through a permanent establishment, in which case only profits attributable to that permanent establishment may be taxed there. Such profits are attributed on the separate enterprise basis, with deductions allowed for expenses incurred for the purposes of the permanent establishment subject to the host State's tax law; intercompany charges (other than reimbursements) such as royalties, fees, commissions, management charges and, except for banking, interest are not deductible or recognized in profit attribution.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
AI OCR ✕
of 
TaxTMI 
TaxTMI 
