Permanent establishment definition limits taxable presence to fixed places and specific agent activities with temporal tests. Permanent establishment is a fixed place of business carrying on an enterprise's activities, exemplified by management offices, branches, factories, warehouses, sales outlets and installations for resource exploration subject to temporal tests; building sites and construction projects are PEs only if they exceed the specified duration. Exclusions cover solely preparatory or auxiliary activities such as storage, display, purchasing, information collection, advertising and scientific research. A dependent agent with authority to conclude contracts or maintaining stock for regular delivery can create a PE, whereas independent agents acting in the ordinary course of business generally do not, unless transactions are not at arm's length. Control between related companies alone does not create a PE.
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 definition limits taxable presence to fixed places and specific agent activities with temporal tests.
Permanent establishment is a fixed place of business carrying on an enterprise's activities, exemplified by management offices, branches, factories, warehouses, sales outlets and installations for resource exploration subject to temporal tests; building sites and construction projects are PEs only if they exceed the specified duration. Exclusions cover solely preparatory or auxiliary activities such as storage, display, purchasing, information collection, advertising and scientific research. A dependent agent with authority to conclude contracts or maintaining stock for regular delivery can create a PE, whereas independent agents acting in the ordinary course of business generally do not, unless transactions are not at arm's length. Control between related companies alone does not create a PE.
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