Document ID: chunk:federal_register_of_legislation:C2008A00111:schedule:42a:p3
Version: federal_register_of_legislation:C2008A00111
Segment Type: schedule
Provision Reference: sch 42A (pt 3/16)
Character Range: 6739–9562

profits or gains are relieved from tax in a Contracting State and, under the law in force in the other Contracting State, an individual in respect of such income, profits or gains is exempt from tax by virtue of being a temporary resident of the other State within the meaning of the applicable laws of that other State, then the relief to be allowed under the Agreement in the firstmentioned State shall not apply to the extent that such income, profits or gains are exempt from tax in the other State."

ARTICLE 4

Article 5 of the Agreement is omitted and the following Article is substituted:

"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 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 relating to the exploration for or exploitation of natural resources; and
(g) an agricultural, pastoral or forestry property.

    3. A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.

    4. Notwithstanding the provisions of paragraphs 1, 2 and 3, where an enterprise of a Contracting State:

         (a) carries on supervisory or consultancy activities in the other State for a period or periods exceeding in the aggregate 183 days in any 12 month period in connection with a building site or construction or installation project which is being undertaken in that other State; or

         (b) carries on activities (including the operation of substantial equipment) in the other State in the exploration for or exploitation of natural resources situated in that other State for a period or periods exceeding in the aggregate 90 days in any 12 month period; or

         (c) operates substantial equipment in the other State (including as provided in subparagraph (b)) for a period or periods exceeding 183 days in any 12 month period,

    such activities shall be deemed to be performed through a permanent establishment that the enterprise has in that other State, unless the activities are limited to those mentioned in paragraph 6 and are, in relation to the enterprise, of a preparatory or auxiliary character.

    5. (a) The duration of activities under paragraphs 3 and 4 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