Direct Tax Avoidance Agreements

UAR (Egypt)

Article V - Permanent establishment - 1. For the purposes of this Convention, the term permanent establishment means a fixed place of business in which the business of the enterprise is wholly or partly carried on.

2. The term permanent establishment shall include

(a) a place of management ;

(b) a branch ;

(c) an office ;

(d) a factory ;

(e) a workshop or a warehouse ;

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

(g) a permanent sales exhibition ;

(h) a building site or construction or assembly project which exists for more than ninety days.

3. The term permanent establishment shall not be deemed to include

(a) the use of facilities solely for the purpose of storage or display 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 or display ;

(c) the maintenance of a fixed place of business solely for the purpose of purchasing goods or merchandise or for collecting information, for the enterprise ; and

(d) the maintenance of a fixed place of business solely for the purpose of advertising, or for scientific research, for the enterprise.

4. A person acting in one of the Contracting States for or on behalf of an enterprise of the other ContractingState shall be deemed to be a permanent establishment of that enterprise in the first-mentioned State if

(i) he has and habitually exercises in that State general authority to negotiate and enter into contracts for or on behalf of the enterprise, unless the activities of the person are limited to the purchase of goods or merchandise for the enterprise, or

(ii) he habitually maintains in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which the person regularly delivers goods or merchandise for or on behalf of the enterprise, or

(iii) he habitually secures orders in the first-mentioned Contracting State exclusively or almost exclusively, for the enterprise itself or for the enterprise and other enterprises which are controlled by it or have a controlling interest in it.

5. An enterprise of a ContractingState shall not be deemed to have a permanent establishment in the other ContractingState merely because it carries on business in that other State through a broker of a genuinely independent status.

6. The fact that a company, which is a resident of one of the Contracting States, has a subsidiary company which either is a resident of the other Contracting State or carries on a trade or business in that other Contracting State (whether through a permanent establishment or otherwise) shall not, of itself, constitute that subsidiary company a permanent establishment of its parent company.