Permanent establishment rules broaden definition and treat certain agent arrangements and project-splitting as creating taxable presence. The treaty defines permanent establishment as a fixed place of business and lists typical forms, while construction and installation projects constitute a PE only when project-duration thresholds are exceeded; the MLI requires aggregation of related periods to counteract contract splitting. Preparatory or auxiliary activities (storage, display, purchasing, information collection, advertising, research, processing by another) are excluded from PE status, but the MLI treats combined or complementary activities by the enterprise or closely related enterprises as a PE where the overall activity is not preparatory or auxiliary.
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Provisions expressly mentioned in the judgment/order text.
Permanent establishment rules broaden definition and treat certain agent arrangements and project-splitting as creating taxable presence.
The treaty defines permanent establishment as a fixed place of business and lists typical forms, while construction and installation projects constitute a PE only when project-duration thresholds are exceeded; the MLI requires aggregation of related periods to counteract contract splitting. Preparatory or auxiliary activities (storage, display, purchasing, information collection, advertising, research, processing by another) are excluded from PE status, but the MLI treats combined or complementary activities by the enterprise or closely related enterprises as a PE where the overall activity is not preparatory or auxiliary.
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