Permanent establishment definition determines when a fixed place or dependent agent creates taxable presence under the treaty. The Article defines permanent establishment as a fixed place of business (e.g., management, branch, office, factory, warehouse) and treats construction or installation projects as PEs if they exceed six months. Preparatory or auxiliary activities and mere storage, display, purchasing, information collection, or stock maintenance for processing are excluded. A dependent agent with authority to conclude contracts or who maintains stock for regular delivery creates a PE, whereas independent agents acting in the ordinary course of business generally do not; insurance enterprises collecting premiums or insuring risks through non-independent agents are also deemed to have 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 determines when a fixed place or dependent agent creates taxable presence under the treaty.
The Article defines permanent establishment as a fixed place of business (e.g., management, branch, office, factory, warehouse) and treats construction or installation projects as PEs if they exceed six months. Preparatory or auxiliary activities and mere storage, display, purchasing, information collection, or stock maintenance for processing are excluded. A dependent agent with authority to conclude contracts or who maintains stock for regular delivery creates a PE, whereas independent agents acting in the ordinary course of business generally do not; insurance enterprises collecting premiums or insuring risks through non-independent agents are also deemed to have a PE.
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