13 DE MAIO DE 1981

2537

c) If he has an habitual abode in both States or

in neither of them, he shall be deemed to be a resident of the State of which he is a national;

d) If he is a national of both States or of neither

of them, the competent authorities of the Contracting States shall settle the question by mutual agreement.

3 — Where by reason of the provisions of paragraph 1 a person other than an individual is a resident of both Contracting States, then it shall be deemed to be a resident of the State in which its place of effective management is situated.

4 — As regards the application of articles 5 to 23, a partner cf a partnership shll, for the purposes of the taxation of his income derived from this partnership or of the capital which he holds through this partnership—excludingits distribuitions — be deemed to be a resident cf the Contracting State in which the place cf effective management of the partnership is situated. II such income or capital is not subject to tax in this State, it shall be taxable in the other State.

ARTICLE 5 Permanent establishment

1 — For the purposes of this Convention, the term ((permanent establishment)) means a fixed place of business through which tho business of an enterprise is wholly or partly carried on.

2 — The term ((permanent establishments includes especially:

a) A place of management; to 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 re sauces.

3 — A building site or construction or installation project constitutes a permanent establishment only if it lasts more than six months.

4 — Notwitastanding the preceding provisions of this article the term ((permanent establishments shall be deemed not to include:

a) The use of facilities solely for the purpose of

storage, display ox delivery of goods or merchandise belonging to the enterprise;

b) The maintenance of a stock of goods or mer-

chandise belonging to the enterprise solely for the purpos e of storage, display or delivery;

c) The maintenance of a stock of goods ot mer-

chandise 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;

/) 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.

5 — Notwithstanding the provisions of paragraphs 1 and 2, where a person — other than an agent of an independent status tcwhem 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 deened to have a permanent establishment in a Contracting State meroly 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.

CHAPTER III Taxation of income ARTICLE 6

Income from immovable property

1 — Income derived by a resident of a Contracting State from immovable property (including income from agriculture or forestry) situated in the other Contracting State may be taxed in that other State.

2 — The term ((immovable property)) shall have the meaning which it has undier the law of the. Contracting State in which the property in question is situated. The term shall in any case include property acessory to immovable property, livestock and equipment used in agriculture and forestry, rights to which the provisions of general law respecting landed property apply, usufruct of immovable property and rights to variable or fixed payments as consideration for the working of, or the right to work, mineral deposits, sources and other natural resources; ships, boats and aircraft shall not be regarded as immovable property.