Permanent establishment defined by fixed place of business and agent activities may create taxable presence under duration and authority tests. Article 5 defines Permanent Establishment as a fixed place of business and enumerates typical forms (management, branch, office, factory, workshop, sales outlet, warehouse, agricultural and resource extraction sites). It treats construction, installation and service activities as establishing a permanent establishment when they exceed specified duration thresholds, while excluding premises used solely for preparatory or auxiliary activities such as storage, display, purchasing, information collection or processing by another enterprise. Agency rules deem an enterprise to have a permanent establishment where a representative habitually concludes contracts, maintains delivery stock, or secures orders, whereas independent agents acting in the ordinary course do not 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 defined by fixed place of business and agent activities may create taxable presence under duration and authority tests.
Article 5 defines Permanent Establishment as a fixed place of business and enumerates typical forms (management, branch, office, factory, workshop, sales outlet, warehouse, agricultural and resource extraction sites). It treats construction, installation and service activities as establishing a permanent establishment when they exceed specified duration thresholds, while excluding premises used solely for preparatory or auxiliary activities such as storage, display, purchasing, information collection or processing by another enterprise. Agency rules deem an enterprise to have a permanent establishment where a representative habitually concludes contracts, maintains delivery stock, or secures orders, whereas independent agents acting in the ordinary course do not create a permanent establishment.
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