Malaysia (tax/treaty)

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. any place of extraction of natural resources. 3. The term "permanent establishment" also includes: a. a building site, a construction, assembly or installation project, or supervisory activities, in connection therewith, but only where such site, project or activities continue for a period of more thansixmonths; b. the furnishing of services, including consultancy services, by an enterprise through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any twelve-month period. 4. Notwithstanding the preceding provisions of this Article, a permanent establishment does not include a fixed place of business used only for one or more of the following: a. the use of facilities for the sole 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 for the sole purpose of storage, display or delivery; c. the maintenance of a stock of goods or merchandise belonging to the enterprise for the sole purpose of processing by another enterprise; d. the maintenance of a fixed place of business for the sole purpose of purchasing goods or merchandise, or of collecting information for the enterprise; e. the maintenance of a fixed place of business for the sole purpose of advertising, submitting data, conducting scientific research for the enterprise, or any similar activity is such activity is of preparatory or auxiliary nature. 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 in one of the State on behalf of an enterprise of the other State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State in respect of any activities which that person undertakes for the enterprise if the person: a. has, and habitually exercises in the first-mentioned 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 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; or b. has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise belonging to the enterprise from which he regularly fills orders and delivers goods or merchandise on behalf of the enterprise. 6. An enterprise of a Contracting State shall not be deemed to have a permanent establishment in the other Contracting State merely because it carries on business in that other State through a broker, general commission agent or any other agent of an independent status, where 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.