Permanent establishment rules limit taxing rights to profits attributable to the PE, attributed on arm's length principles. Business profits are taxable only in the residence State unless the enterprise operates through a permanent establishment in the other State; that other State may tax only profits attributable to the permanent establishment, attributed as if it were a distinct and separate enterprise on arm's length terms. Deemed profit rules under domestic law are permitted if consistent with the Article. Deductible expenses include executive and general administrative costs incurred for the permanent establishment. No profits are attributed solely from purchase of goods. The same attribution method should be used year to year unless justified otherwise.
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 rules limit taxing rights to profits attributable to the PE, attributed on arm's length principles.
Business profits are taxable only in the residence State unless the enterprise operates through a permanent establishment in the other State; that other State may tax only profits attributable to the permanent establishment, attributed as if it were a distinct and separate enterprise on arm's length terms. Deemed profit rules under domestic law are permitted if consistent with the Article. Deductible expenses include executive and general administrative costs incurred for the permanent establishment. No profits are attributed solely from purchase of goods. The same attribution method should be used year to year unless justified otherwise.
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 
