1460-(38)

II SÉRIE-A — NUMERO 60

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 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 — Subject to the provisions of paragraphs 4, 7 and 8 of this article, an enterprise of a Contracting State which carries on business activity of a permanent nature through its own employees or any other personnel rendering a substantially similar service for 183 days or more in any twelve-month period in the other Contracting State shall be deemed to have a permanent establishment in that other State.

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 comission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

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.

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 under the law of the Contracting

State in which the property in question is situated. The

term shall in any case include property accessory 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.

3 — The provisions of paragraph 1 shall apply to income derived from the direct use, letting, or use in any other form of immovable property.

4 — The provisions of paragraphs 1 and 3 shall also apply to the income from immovable property of an enterprise and to income from immovable property used for the performance of independent personal services.

5 — The foregoing provisions shall also apply to income from movable property wliich, under the taxation law of the Contracting State in which the property in question is situated, is assimilated to income from immovable property.

Article 7

Business profits

1 — The profits of an enterprise of a Contracting State shall be taxable only in that State unless the enterprise carries on business in the other Contraction State through a permanent establishment situated therein. If the enterprise carries on business as aforesaid, the profits of the enterprise may be taxed in the other State but only so much of them as is attributable to that permanent establishment.

2 — Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries on business, in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that permanent establishment the profits which it might be expected to make if it were a distinct and separate enterprise engaged in the same or similar activities under the same or similar conditions and dealing wholly independently with the enterprise of which it is a permanent establishment.

3 — In determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere.

4 — No profits shall be attributed to a permanent establishment by reason of the mere purchase by that permanent establishment of goods or merchandise for the enterprise.

5 — For the purposes of the preceding paragraphs, 'the profits to be attributed to the permanent establishment shall be determined by the same method year by year unless there is good and sufficient reason to the contrary.

6 — Where profits include items of income which are dealt with separately in other articles of this Convention,