Business profits taxation: taxable in residence unless profits are attributable to a permanent establishment in the other State. Business profits are taxable in the State of residence unless the enterprise operates in the other Contracting State through a permanent establishment, in which case taxable profits are limited to those attributable to that permanent establishment or related sales and activities. Profits must be attributed as if the permanent establishment were a distinct and separate enterprise dealing independently, allowing deductions for expenses incurred for the permanent establishment subject to local tax law limits, but excluding non reimbursed intercompany royalties, fees, commissions, management charges and, except for banks, interest. Customary apportionment methods are permissible if consistent with the Article and attribution methods should be applied consistently.
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.
Business profits taxation: taxable in residence unless profits are attributable to a permanent establishment in the other State.
Business profits are taxable in the State of residence unless the enterprise operates in the other Contracting State through a permanent establishment, in which case taxable profits are limited to those attributable to that permanent establishment or related sales and activities. Profits must be attributed as if the permanent establishment were a distinct and separate enterprise dealing independently, allowing deductions for expenses incurred for the permanent establishment subject to local tax law limits, but excluding non reimbursed intercompany royalties, fees, commissions, management charges and, except for banks, interest. Customary apportionment methods are permissible if consistent with the Article and attribution methods should be applied consistently.
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