Permanent establishment: dependent agents or fixed places that carry on core business create taxable nexus under PE rules. A permanent establishment exists where an enterprise carries on business through a fixed place of business, with specific examples and a construction-site/installation project threshold. Exclusions apply to activities of a preparatory or auxiliary character (storage, display, delivery, purchasing, information-gathering), but a fixed place becomes a PE if combined activities cease to be preparatory or auxiliary. Paragraph 4.1 prevents fragmentation across related enterprises. Agency rules deem a PE where a person habitually concludes or principally leads to contract conclusion for the enterprise, except for genuine independent agents; close control affects that assessment.
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: dependent agents or fixed places that carry on core business create taxable nexus under PE rules.
A permanent establishment exists where an enterprise carries on business through a fixed place of business, with specific examples and a construction-site/installation project threshold. Exclusions apply to activities of a preparatory or auxiliary character (storage, display, delivery, purchasing, information-gathering), but a fixed place becomes a PE if combined activities cease to be preparatory or auxiliary. Paragraph 4.1 prevents fragmentation across related enterprises. Agency rules deem a PE where a person habitually concludes or principally leads to contract conclusion for the enterprise, except for genuine independent agents; close control affects that assessment.
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