Document ID: chunk:federal_register_of_legislation:C2004A04052:schedule:29:p4
Version: federal_register_of_legislation:C2004A04052
Segment Type: schedule
Provision Reference: sch 29 (pt 4/64)
Character Range: 11060–13891

other Contracting State, the person shall be deemed to be a resident solely of that other State.

5. If a company has become a resident of a Contracting State for the principal purpose of enjoying benefits under this Agreement, that company shall not be entitled to any of the benefits of Articles 10, 11 and 12.

6. Where by reason of the provisions of paragraph (1) a company is a resident of Australia and, under a tax agreement between China and a third country, is also a resident of that third country, the company shall not be considered to be a resident of Australia for the purposes of enjoying benefits under this Agreement.

ARTICLE 5

Permanent Establishment

1. For the purposes of this Agreement, the term "permanent establishment" means a fixed place of business through which 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;

SCHEDULE 1—continued

     (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources;

  (g) a farm or forest.

  3. The term "permanent establishment" likewise encompasses:

     (a) a building site, a construction, assembly or installation project, or supervisory activities in connection therewith, but only where that site or project or those activities continue for a period of more than six months;

     (b) the furnishing of services, including consultancy services, in a Contracting State by an enterprise of the other Contracting State through employees or other personnel engaged by the enterprise for such purpose, but only where those activities continue (for the same or a connected project) within the first-mentioned Contracting State for a period or periods aggregating more than six months within any twelve-month period; and

     (c) a structure, installation, drilling rig, ship or other equipment used for the exploration for or exploitation of natural resources, or in activities connected with that exploration or exploitation, but only if so used continuously, or those activities continue, for a period of more than three months.

4. 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