Permanent establishment: profits attributable to a PE may be taxed where the PE operates, subject to separate enterprise attribution. Profits are taxable in the State of residence unless an enterprise carries on business through a permanent establishment in the other Contracting State; only profits attributable to that PE may be taxed there. Attribution follows the separate enterprise principle, allowing deductions for expenses incurred for the PE including executive and general administrative costs. Customary apportionment methods may be used if they accord with the article's principles. No profits are attributed to a PE solely for purchasing goods for export to the enterprise, and items covered by other treaty articles remain governed by those articles.
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: profits attributable to a PE may be taxed where the PE operates, subject to separate enterprise attribution.
Profits are taxable in the State of residence unless an enterprise carries on business through a permanent establishment in the other Contracting State; only profits attributable to that PE may be taxed there. Attribution follows the separate enterprise principle, allowing deductions for expenses incurred for the PE including executive and general administrative costs. Customary apportionment methods may be used if they accord with the article's principles. No profits are attributed to a PE solely for purchasing goods for export to the enterprise, and items covered by other treaty articles remain governed by those articles.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
