Document ID: chunk:federal_register_of_legislation:C2004A04052:schedule:29:p25
Version: federal_register_of_legislation:C2004A04052
Segment Type: schedule
Provision Reference: sch 29 (pt 25/64)
Character Range: 63357–66259

of both Contracting States, then it shall be deemed to be a resident solely of the Contracting State in which its place of effective management is situated.

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" shall include 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.

(3) The term "permanent establishment" likewise encompasses:

     (a) a building site, construction, assembly or installation project, or an installation or drilling rig or ship used for the exploration

SCHEDULE 2—continued

     for or development of natural resources, including supervisory activities in connection therewith rendered by the same person only if that site, project or use continues or those activities continue for more than 183 days;

     (b) the furnishing of services, including consultancy services, in one of the Contracting States by an enterprise through employees or other personnel engaged by the enterprise for such purposes, but only where activities of that nature continue (for the same or a connected project) within that Contracting State for a period or periods aggregating more than 183 days within any twelve month period.

(4) An enterprise shall be deemed to have a permanent establishment in one of the Contracting States and to carry on business through that permanent establishment if substantial equipment is being used in that State by, for or under contract with the enterprise.

(5) A person acting in one of the Contracting States on behalf of an enterprise of the other Contracting State—other than an agent of an independent status to whom paragraph (7) applies—shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if:

     (a) the person has, and habitually exercises in that State, an authority to conclude contracts on behalf of the enterprise, unless the person's activities are limited to the purchase of goods or merchandise for the enterprise;

     (b) the person has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he or she regularly delivers goods or merchandise on behalf of the enterprise;

     (c) in so acting, the person manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise;

     (d) the person's activities consist wholly or principally of securing orders in the first-mentioned State for the enterprise or for the enterprise and