Permanent Establishment: rules defining when a fixed place or dependent agent creates taxable business presence and tax nexus. Article 5 defines permanent establishment as a fixed place of business, enumerates examples (place of management, branch, office, factory, workshop, sales outlet, warehouse providing storage for others, agricultural or resource extraction sites), and treats construction or assembly projects as permanent establishments only if lasting more than six months. It excludes activities of a preparatory or auxiliary character (storage, display, delivery, stock for processing, purchasing, information collection) and sets out agency rules: dependent agents who habitually conclude contracts, maintain stock for delivery, or secure orders can create a permanent establishment, whereas independent agents acting in the ordinary course do not, unless devoted almost wholly to one enterprise; insurance premium collection through non independent persons also creates a permanent establishment.
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 defining when a fixed place or dependent agent creates taxable business presence and tax nexus.
Article 5 defines permanent establishment as a fixed place of business, enumerates examples (place of management, branch, office, factory, workshop, sales outlet, warehouse providing storage for others, agricultural or resource extraction sites), and treats construction or assembly projects as permanent establishments only if lasting more than six months. It excludes activities of a preparatory or auxiliary character (storage, display, delivery, stock for processing, purchasing, information collection) and sets out agency rules: dependent agents who habitually conclude contracts, maintain stock for delivery, or secure orders can create a permanent establishment, whereas independent agents acting in the ordinary course do not, unless devoted almost wholly to one enterprise; insurance premium collection through non independent persons also creates a permanent establishment.
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