Document ID: chunk:federal_register_of_legislation:C2024C00814:schedule:1:p3
Version: federal_register_of_legislation:C2024C00814
Segment Type: schedule
Provision Reference: sch 1 (pt 3/31)
Character Range: 90987–93915

Article 5
Permanent establishment

1. For the purposes of this Agreement, the term "permanent establishment", in relation to an enterprise, means a fixed place of business through which the business of the 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 of extraction of natural resources;
         (g) an agricultural, pastoral or forestry property;
         (h) a building site or construction, installation or assembly project which exists for more than 6 months; and
         (i) the furnishing of services, including consultancy services in a territory by an enterprise of the other territory through employees or other personnel engaged by the enterprise for such purpose, but only where those activities (for the same or a connected project) within the first‑mentioned territory continue for a period or periods aggregating more than 120 days within any twelve month period.

3. 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; or
         (b) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery; or
         (c) the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise; or
         (d) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise, or of collecting information, for the enterprise; or
         (e) the maintenance of a fixed place of business solely for the purpose of activities which have a preparatory or auxiliary character for the enterprise, such as advertising or scientific research.

4. An enterprise shall be deemed to have a permanent establishment in a territory and to carry on business through that permanent establishment if:
         (a) it carries on supervisory activities in that territory for more than 6 months in connection with a building site, or a construction, installation or assembly project, which is being undertaken in that territory; or
         (b) substantial equipment is being used in that territory by, for or under contract with, the enterprise where that use continues for more than 3 months.

5. A person acting in a territory on behalf of an enterprise of the other territory—other than an agent of an independent status to whom paragraph 6 applies—shall be deemed to be a permanent establishment of that enterprise in the first‑mentioned territory if:
         (a) the person has, and habitually exercises in that