Convention between The Kingdom of The Netherlands and The Republic of Azerbaijan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital:Article 5 Permanent establishment

Convention between The Kingdom of The Netherlands and The Republic of Azerbaijan for the avoidance of double taxation and the prevention of fiscal evasion with respect to taxes on income and on capital

Article 5 Permanent establishment

Geldend

Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.Deze functie is alleen te gebruiken als je bent ingelogd.

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, and

f)

a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.

3

a)

A building site or construction or installation project in a Contracting State, including supervisory activities, constitutes a permanent establishment in that Contracting State only if it lasts more than 12 months;

b)

The furnishing of services, including consultancy services, in a Contracting State by an enterprise through employees or other personnel engaged by the enterprise for such purposes, constitute a permanent establishment only where activities of such nature continue (for the same or a connected project) in that State for more than 6 months.

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 or disseminating information or of marketing of a preparatory or auxiliary character, for the enterprise;

e)

the facilitation of the conclusion (including of the mere signing) of contracts concerning loans, concerning the delivery of goods or merchandise or concerning technical services, where these activities for the enterprise are activities of a preparatory or auxiliary character;

f)

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;

g)

the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) to f), 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 7 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.

Notwithstanding the preceding provisions of this article, an insurance enterprise of a Contracting State shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 7 applies.

7.

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.

However, if the activities of the agent are carried out wholly or almost wholly for the enterprise he shall not be considered to be an agent of an independent status for the purposes of this paragraph, unless it is shown that the transactions between the agent and the enterprise were made under the conditions which would be made between independent parties.

8.

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.

Deze functie is alleen te gebruiken als je bent ingelogd.