Profits of a Permanent Establishment Clause Samples

Profits of a Permanent Establishment. 1. Profits derived in a Contracting State by a resident of the other Contracting State shall be liable to taxation in the first-mentioned State only if they are derived through a permanent establishment located therein and only to the extent which is attributable to the activity of such permanent establishment. 2. In the determination of the profits of a permanent establishment there shall be deducted expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses, whether incurred in the country of residence or abroad. 3. For the purposes of this Convention the term "a permanent establishment" means an agency, an office or any other fixed place of business through which a resident of a Contracting State carries on business in the other Contracting State. 4. Notwithstanding the provisions of paragraphs 1 and 3 the following kinds of activity shall not be deemed as being carried on through a permanent establishment: a. Construction and assembly works performed during a period of time not exceeding twelve months, including the performance of control over the construction of an object or of any assembly works. In cases where such works are performed in accordance with the programmes of intergovernmental co-operation, the competent authorities of the Contracting States may, by mutual agreement extend the twelve- month period in cases when they deem it necessary; b. purchase and maintenance of goods and merchandise, including the performance of storage operations, and delivery of goods and merchandise; c. conclusion of contracts through an agent or any other authorised person acting as a trustee or on any other written authorization if such activity is beyond the ordinary course of his business; d. display of goods and merchandise, exhibition of exhibits as well as operations connected with their sale after the exposition; e. advertising, collecting and disseminating information, marketing and other similar activity of a preparatory or an auxiliary character; f. performance of planning, development and scientific research works (including joint works), engineering, testing of samples of goods, machines and equipment, technical servicing of machines and equipment, if this servicing is of a preparatory or an auxiliary character to the main activity of a person; g. performance of several functions listed above, provided that this activity in the whole is of a preparatory or an auxiliary character...
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Profits of a Permanent Establishment. 1. Profits derived in a Contracting State by a resident of the other Contracting State shall be liable to taxation in the first-mentioned State only if they are derived through a permanent establishment located therein and only to the extent which is attributable to the activity of such permanent establishment. 2. In the determination of the profits of a permanent establishment there shall be deducted expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses, whether incurred in the country of residence or abroad. 3. For the purposes of this Convention the term “a permanent establishment” means an agency, an office or any other fixed place of business through which a resident of a Contracting State carries on business in the other Contracting State. 4. Notwithstanding the provisions of paragraphs 1 and 3 the following kinds of activity shall not be deemed as being carried on through a permanent establishment: (a) construction and assembly works performed during a period of time not exceeding twelve months, including the performance of control over the construction of an object or of any assembly works. In cases where such works are performed in (b) purchase and maintenance of goods and merchandise, including the performance of storage operations, and delivery of goods and merchandise; (c) conclusion of contracts through an agent or any other authorised person acting as a trustee or on any other written authorization if such activity is beyond the ordinary course of his business; (d) display of goods and merchandise, exhibition of exhibits as well as operations connected with their sale after the exposition; (e) advertising, collecting and disseminating information, marketing and other similar activity of a preparatory or an auxiliary character; (f) performance of planning, development and scientific research works (including joint works), engineering, testing of samples of goods, machines and equipment, technical servicing of machines and equipment, if this servicing is of a preparatory or an auxiliary character to the main activity of a person; (g) performance of several functions listed above, provided that this activity in the whole is of a preparatory or an auxiliary character to the main activity of a person; (h) performance of other types of activity of a preparatory or an auxiliary character to the main activity of a person. 5. A resident of a Contracting State shall not be d...
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Related to Profits of a Permanent Establishment

  • 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; and (f) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources. 3. The term "permanent establishment" also includes: (a) a building site or construction or assembly or installation project or supervisory activities in connection therewith, but only where such site, project or activities continue for a period or periods aggregating more than 6 months within any twelve-month period; (b) the furnishing of services, including consultancy services, by a resident of a Contracting State through employees or other personnel engaged by the enterprise for a period or periods aggregating more than 183 days within any twelve-month period. 4. 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 sub-paragraphs (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. 5. Notwithstanding the provisions of paragraphs 1 and 2, where a person -- other than an agent of an independent status to whom paragraph 6 applies -- is acting on behalf of an enterprise 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 that State in respect of any activities which that person undertakes for the enterprise, unless the activities of such person are limited to those mentioned in paragraph 4 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. 6. 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. 7. 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.

  • Establishment of Collateral Account The Securities Intermediary hereby confirms that: (a) the Securities Intermediary has established the Collateral Account; (b) the Collateral Account is a securities account; (c) subject to the terms of this Agreement, the Securities Intermediary shall identify in its records the Collateral Agent as the entitlement holder entitled to exercise the rights that comprise any financial asset credited to the Collateral Account; (d) all property delivered to the Securities Intermediary pursuant to this Agreement, including any Applicable Ownership Interests in the Treasury Portfolio or Treasury Securities and the Permitted Investments, will be credited promptly to the Collateral Account; and (e) all securities or other property underlying any financial assets credited to the Collateral Account shall be (i) registered in the name of the Purchase Contract Agent and indorsed to the Securities Intermediary or in blank, (ii) registered in the name of the Securities Intermediary or (iii) credited to another securities account maintained in the name of the Securities Intermediary. In no case will any financial asset credited to the Collateral Account be registered in the name of the Purchase Contract Agent (in its capacity as such) or any Holder or specially indorsed to the Purchase Contract Agent (in its capacity as such) or any Holder, unless such financial asset has been further indorsed to the Securities Intermediary or in blank.

  • Establishment of Collateral Accounts Securities Intermediary acknowledges and agrees that: (i) it has established and is maintaining on its books and records the accounts identified on the attached Schedule 1 (each such account, together with any replacements thereof or substitutions therefor, the “Collateral Account” and such accounts, collectively, the “Collateral Accounts”) in the name of the Borrower; (ii) each Collateral Account is a “securities account” (within the meaning of Section 8-501(a) of the UCC) in respect of which Securities Intermediary is a “securities intermediary” (within the meaning of Section 8-102(a)(14) of the UCC and, with respect to any Book-Entry Security, within the meaning of Federal Book-Entry Regulations) and the Security Agent is the “entitlement holder” (within the meaning of Section 8-102(a)(7) of the UCC); provided, however, that if, notwithstanding the intention of the parties hereto, all or any portion of the Collateral Account is determined to be a “deposit account” (within the meaning of Section 9-102 of the UCC) rather than a “securities account,” then the Securities Intermediary represents, warrants, covenants and agrees that it is a “bank” (as defined in Section 9-102(a)(8) of the UCC) and will treat the Borrower as its customer (within the meaning of Section 9-104(a)(3) of the UCC) with respect to the Collateral Accounts (or portion thereof); (iii) all property delivered, or to be delivered, to Securities Intermediary pursuant to this Agreement is, and will be, promptly credited to the Collateral Accounts; (iv) it does not know of any claim to or interest in any Collateral Account or any assets or funds therein, except for claims and interests of the parties to this Agreement as set forth herein; and (v) it shall not change the name or account number of any Collateral Account without the prior written consent of the Security Agent. Except as provided in Section 2(b), Securities Intermediary agrees that it shall not take “entitlement orders” (as defined in Section 8-102(a)(8) of the UCC) or “instructions” (within the meaning of Section 9-104(a)(2) of the UCC) with respect to the Collateral Accounts or any assets or funds therein from any Person other than the Security Agent.

  • Establishment of Series Subject to the provisions of this Agreement, the Managing Member may, at any time and from time to time and in compliance with paragraph (c), cause the Company to establish in writing (each, a Series Designation) one or more series as such term is used under Section 18-215 of the Delaware Act (each a Series). The Series Designation shall relate solely to the Series established thereby and shall not be construed: (i) to affect the terms and conditions of any other Series, or (ii) to designate, fix or determine the rights, powers, authority, privileges, preferences, duties, responsibilities, liabilities and obligations in respect of Interests associated with any other Series, or the Members associated therewith. The terms and conditions for each Series established pursuant to this Section shall be as set forth in this Agreement and the Series Designation, as applicable, for the Series. Upon approval of any Series Designation by the Managing Member, such Series Designation shall be attached to this Agreement as an Exhibit until such time as none of such Interests of such Series remain Outstanding.

  • Establishment of Segregated Account Upon receipt of Proper Instructions, the Custodian shall establish and maintain on its books a segregated account or accounts for and on behalf of a Portfolio, into which account or accounts may be transferred cash and/or securities or other assets of such Portfolio, including securities maintained by the Custodian in a Securities System pursuant to Section 2.22(a) hereof or an Eligible Securities Depository pursuant to Section 2.22(b) hereof, said account or accounts to be maintained: (a) for the purposes set forth in Sections 2.09, 2.10 and 2.11 hereof; (b) for the purposes of compliance by the Portfolio with the procedures required by Investment Company Act Release No. 10666, or any subsequent release or releases of the SEC or SEC rules or regulations relating to the maintenance of segregated accounts by registered investment companies; or (c) for such other purposes as set forth, from time to time, in Special Instructions.