TaxTMI 
TaxTMI 
Permanent Establishment
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....r for receiving or soliciting orders; (i) an installation or structure used for the exploration or exploitation of natural resources; (j) [MODIFIED by paragraph 1 of Article 14 of the MLI] [a building site or construction, installation or assembly project or supervisory activities in connection therewith, where such site, project or activities (together with other such sites, projects or activities, if any) continue for a period of more than six months.] The following paragraph 1 of Article 14 of the MLI applies and supersedes subparagraph (j) of paragraph 2 of Article 5 of this Convention: ARTICLE 14 OF THE MLI - SPLITTING-UP OF CONTRACTS For the sole purpose of determining whether the period (or periods) referre....
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....carried on activities at that building site [, or] construction [, or] installation [or assembly] project or [supervisory activities in connection therewith other place identified in the [subparagraph (j) of paragraph 2 of Article 5 of the Convention]. 3. An enterprise shall be deemed to have a permanent establishment in a State and to carry on business through that permanent establishment if it provides services or facilities in connection with or supplies plant and machinery on hire used or to be used in, the prospecting for, extraction or production of mineral oils or in connection with such extraction or production of mineral oils in the State. 4. [MODIFIED by paragraph 2 of Article 13 of the MLI] [Notwithstanding the preceding pr....
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....term "permanent establishment" shall be deemed not to include: a) i) the use of facilities solely for the purpose of storage, display or unloading of goods or merchandise belonging to the enterprise; ii) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display; iii) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; iv) the maintenance of fixed place of business solely for the purpose of purchasing goods or merchandise or of collecting information, for the enterprise; v) the maintenance of a fixed place of business solely for the purpose of adv....
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....ry or auxiliary character, provided that the business activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two places, constitute complementary functions that are part of a cohesive business operation. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person being a resident of a Contracting State - other than, an agent of an independent status to whom paragraph 6 applies, is acting on behalf of an enterprise of the other Contracting State that enterprise shall be deemed to have a permanent establishment in the first-mentioned State, if (a) [MODIFIED by paragraph 1 of Article 12 of the MLI] [he has and habitually exercises in that State ....
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....terprise through a fixed place of business of that enterprise situated in that [Contracting State], would not cause that fixed place of business to be deemed to constitute a permanent establishment under the definition of permanent establishment included in the provisions of [Article 5 of the Convention]. (b) he has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise; (c) he habitually secures orders in the first-mentioned State, wholly or almost wholly for the enterprise itself or for the enterprise and other enterprises controlling, controlled by, or subject to the same common control, as....
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.... agent and acts for the enterprise in the ordinary course of that business. Where, however, a person acts exclusively or almost exclusively on behalf of one or more enterprises to which it is closely related, that person shall not be considered to be an independent agent within the meaning of this paragraph with respect to any such enterprise. 7. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment, or otherwise), shall not of itself constitute either company a permanent establishment of the other. The following paragraph 1 of Article 15 of ....