Permanent establishment profit attribution: taxable profits tied to the PE's actual activities; domestic law may prevail if more beneficial. The Protocol fixes that profits of a permanent establishment are to be determined only on receipts attributable to the permanent establishment's actual activities in the State where it is located, including the portion of contract income effectively performed by that establishment. It provides that domestic-law provisions that are more beneficial to a resident of the other Contracting State shall prevail over the treaty. It also records an agreed dividend withholding rate under Article 10 subject to review after three years, with the agreed rate continuing if not reviewed.
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: taxable profits tied to the PE's actual activities; domestic law may prevail if more beneficial.
The Protocol fixes that profits of a permanent establishment are to be determined only on receipts attributable to the permanent establishment's actual activities in the State where it is located, including the portion of contract income effectively performed by that establishment. It provides that domestic-law provisions that are more beneficial to a resident of the other Contracting State shall prevail over the treaty. It also records an agreed dividend withholding rate under Article 10 subject to review after three years, with the agreed rate continuing if not reviewed.
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