Permanent establishment attribution clarified: aggregation of associated enterprise activities and sales treated as through a permanent establishment. The Protocol mandates aggregation of activities of associated enterprises for permanent establishment time-limit computations where activities are identical or substantially similar for the same or connected project; treats sales of the same or similar goods sold in a State through a permanent establishment as sales through that permanent establishment unless the enterprise demonstrates non-treaty-motivated reasons; deems the place of effective management of a shipboard shipping enterprise to be the State of the home harbour or the operator's residence; and expands the definitions of interest and royalties to specified items including commissions, guarantees, factoring, alienation of credits, and transmissions by satellite or cable, while preserving States' domestic anti-abuse measures such as thin capitalization and controlled foreign corporation rules.
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Permanent establishment attribution clarified: aggregation of associated enterprise activities and sales treated as through a permanent establishment.
The Protocol mandates aggregation of activities of associated enterprises for permanent establishment time-limit computations where activities are identical or substantially similar for the same or connected project; treats sales of the same or similar goods sold in a State through a permanent establishment as sales through that permanent establishment unless the enterprise demonstrates non-treaty-motivated reasons; deems the place of effective management of a shipboard shipping enterprise to be the State of the home harbour or the operator's residence; and expands the definitions of interest and royalties to specified items including commissions, guarantees, factoring, alienation of credits, and transmissions by satellite or cable, while preserving States' domestic anti-abuse measures such as thin capitalization and controlled foreign corporation rules.
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