Permanent establishment rules define when a fixed place or dependent agent creates taxable presence under a tax treaty. Article 5 defines permanent establishment as a fixed place of business and lists examples including management, branch, office, factory, workshop, sales outlet, warehouse and extraction or agricultural sites. It treats construction and installation projects as permanent establishments only when they exceed the Article's duration threshold, and deems services, facilities or hire of plant and machinery used in mineral oil prospecting or exploitation to create a permanent establishment. Preparatory or auxiliary activities are excepted, and dependent-agent activities that conclude contracts, maintain delivery stock, or habitually secure orders can create a permanent establishment, whereas independent agents acting in the ordinary course of business do not.
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 define when a fixed place or dependent agent creates taxable presence under a tax treaty.
Article 5 defines permanent establishment as a fixed place of business and lists examples including management, branch, office, factory, workshop, sales outlet, warehouse and extraction or agricultural sites. It treats construction and installation projects as permanent establishments only when they exceed the Article's duration threshold, and deems services, facilities or hire of plant and machinery used in mineral oil prospecting or exploitation to create a permanent establishment. Preparatory or auxiliary activities are excepted, and dependent-agent activities that conclude contracts, maintain delivery stock, or habitually secure orders can create a permanent establishment, whereas independent agents acting in the ordinary course of business do not.
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