TMI BlogPermanent EstablishmentX X X X Extracts X X X X X X X X Extracts X X X X ..... 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) referred to [in subparagraph (j) of paragraph 2 of Article 5 of the Convention] has been exceeded: a) where an enterpr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities 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 provisions of this Article, the term permanent establishment shall be deemed not to include: (a) the use of facilities solely fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rprise; 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 advertising, for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise; b) the maintenance of a fixed place of business solely for the purpose of car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... twithstanding 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 an authority to conclude contracts on behalf of the enterprise, unless the activities of such person are limited to the purchase of goods or merchandise for the enterprise;] The following paragraph 1 of Article 12 of the MLI applies with respect to the subparagraph (a) of paragraph 5 of Article 5 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 that enterprise; or (d) in so acting, he manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise. 6. [MODIFIED by paragraph 2 of Article 12 of the MLI ] [An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that State through a broker, general com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lled 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 the MLI applies to this Convention: ARTICLE 15 OF THE MLI DEFINITION OF A PERSON CLOSELY RELATED TO AN ENTERPRISE For the purposes of the provisions of [Article 5 of the Convention as modified paragraph 2 of Article 12, paragraph 4 of Article 13 and paragraph 1 of Article 14 of the MLI], a person is closely related to an enterprise if, based on all the relevant facts and circumstances, one has control of the other or both are under the con ..... X X X X Extracts X X X X X X X X Extracts X X X X
|