Artikel 5

1. For the purposes of this Convention, 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;
f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and
g) an agricultural, pastoral or forestry property.
3. Likewise the term “permanent establishment” encompasses:
a) a building site, a construction, assembly or installation project, or supervisory activities in connection therewith, constitutes a permanent establishment but only where such site, project or activities continue for a period or periods exceeding in the aggregate of more than 183 days within any twelve-month period.
b) the rendering of services in a Contracting State, including consulting services, by an enterprise through employees or other personnel engaged by the enterprise, but only where these employees or personnel are present in that Contracting State for the performance of the same or connected project, during a period or periods aggregating more than 90 days in any twelve month period.
c) the use of a structure, installations, drilling rig, ship or other like substantial equipment: for the exploration for, or exploitation of, natural resources; or in activities connected with that exploration or exploitation for a period or periods exceeding 90 days in any twelve month period.
4. Notwithstanding the preceding provisions of this Article, where an enterprise of a Contracting State carries on activities in the other Contracting State in connection with the exploration or exploitation of the seabed or any area below or above the seabed and their natural resources situated in that other State for a period of at least in the aggregate 30 days in any twelve month period, it shall be deemed to carry on such activities through a permanent establishment that the enterprise has in the other State, unless the activities are limited to those mentioned in paragraph 6. Activities in connection with the exploration or exploitation of the seabed or any area below or above the seabed and their natural resources shall be deemed not to include:
a) towing or anchor handling by ships primarily designed for that purpose and any other activities performed by such ships; and
b) the transport of supplies or personnel by ships or aircraft in international traffic.
5. For the purposes of determining the duration of activities under paragraph 3 and 4, the period during which activities are carried on in a Contracting State by an enterprise associated with another enterprise shall be aggregated with the period during which activities are carried on by the enterprise with which it is associated if the first-mentioned activities are connected with the activities carried on in that State by the last-mentioned enterprise, provided that any period during which two or more associated enterprises are carrying on concurrent activities is counted only once. An enterprise shall be deemed to be associated with another enterprise if one is controlled directly or indirectly by the other, or if both are controlled directly or indirectly by a third person or persons.
6. Notwithstanding the preceding provisions of this Article, the term “permanent establishment” shall be deemed not to include:
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 of collecting information, for the enterprise;
e) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
f) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to e), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.
7. Notwithstanding the provisions of paragraphs 1, 2, 3 and 4, where a person, other than an agent of an independent status to whom paragraph 8 applies, is acting in a Contracting State on behalf of an enterprise of the other Contracting State and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in the first mentioned State with respect to any activities that said person undertakes for the enterprise if said person:
a) has, and habitually exercises, in that Contracting State an authority to conclude contracts in the name of the enterprise, unless the activities of such person are limited to those mentioned in paragraph 6 which, if exercised through a fixed place of business, would not make this fixed place of business a permanent establishment under the provisions of that paragraph; or
b) has no such powers, but habitually maintains in the first mentioned State a warehouse for goods or merchandise which is regularly used to deliver goods or merchandise in the name of the enterprise, if the goods or merchandise are sold in the Contracting State where the warehouse is located.
8. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that State through a broker, general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business. Notwithstanding the above, when such agent performs all or almost all of his activities in the name of said enterprise, and the enterprise and the agent are united in their commercial or financial relationships by imposed or accepted conditions that differ from the conditions that would be established by independent parties, it will not be considered as an independent agent with regards to this paragraph.
9. The fact that a company which is a resident of a Contracting State controls or is controlled by a company which is a resident of the other Contracting State, or which carries on business in that other State (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.