Document ID: chunk:federal_register_of_legislation:C2004A01208:schedule:1:p5
Version: federal_register_of_legislation:C2004A01208
Segment Type: schedule
Provision Reference: sch 1 (pt 5/12)
Character Range: 15852–18769

the business of an enterprise is wholly or partly carried on.

2 The term "permanent establishment" includes especially:

        (a) a place of management;

        (b) a branch;

        (c) an office;

        (d) a factory;

        (e) a workshop;

        (f) a mine, an oil or gas well, a quarry or any other place relating to the exploration for or exploitation of natural resources; and

        (g) an agricultural, pastoral or forestry property.

3 An enterprise shall be deemed to have a permanent establishment in a Contracting State and to carry on business through that permanent establishment if:

       (a) it has a building site or construction or installation project in that State, or it undertakes a supervisory or consultancy activity in that State connected with such a site or project, but only if that site, project or activity lasts more than 12 months;

       (b) it maintains substantial equipment for rental or other purposes within that other State (excluding equipment let under a hire‑purchase agreement) for a period of more than 12 months; or

       (c) a person acting in a Contracting State on behalf of an enterprise of the other Contracting State manufactures or processes in the first‑mentioned State for the enterprise goods or merchandise belonging to the enterprise.

4 (a) The duration of activities under subparagraph (a) of paragraph 3 will be determined by aggregating the periods during which activities are carried on in a Contracting State by associated enterprises provided that the activities of the enterprise in that State are connected with the activities carried on in that State by its associate.

 (b) The period during which two or more associated enterprises are carrying on concurrent activities will be counted only once for the purpose of determining the duration of activities.

 (c) Under this Article, an enterprise shall be deemed to be associated with another enterprise if:

          (i)  one is controlled directly or indirectly by the other; or

          (ii)  both are controlled directly or indirectly by a third person or persons.

5 Notwithstanding the preceding provisions of this Article, an enterprise shall not be deemed to have a permanent establishment merely by reason of:

        (a) the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;

        (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;

        (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;

        (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or collecting information, for the enterprise; or

        (e) the maintenance of a fixed place of