Business profits attribution: residence taxation applies unless a permanent establishment exists, then attributable profits may be taxed by that State. Business profits are taxable only in the enterprise's 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. Attributed profits must reflect what the permanent establishment would earn as a distinct and separate enterprise under similar conditions; deductible expenses incurred for the permanent establishment, including relevant administrative costs, are allowed in accordance with the tax law of the State where the permanent establishment is located. Apportionment methods customary in a State may be used if they conform with this Article; attribution methods should be applied consistently year to year.
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.
Business profits attribution: residence taxation applies unless a permanent establishment exists, then attributable profits may be taxed by that State.
Business profits are taxable only in the enterprise's 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. Attributed profits must reflect what the permanent establishment would earn as a distinct and separate enterprise under similar conditions; deductible expenses incurred for the permanent establishment, including relevant administrative costs, are allowed in accordance with the tax law of the State where the permanent establishment is located. Apportionment methods customary in a State may be used if they conform with this Article; attribution methods should be applied consistently year to year.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
