b) the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any activity not described in subparagraph a), provided that this activity is of a

preparatory or auxiliary character;

c) the maintenance of a fixed place of business solely for any combination of activities mentioned in subparagraphs a) and b), provided that the overall activity of the fixed place of business

resulting from this combination is of a preparatory or auxiliary character.

4. A provision of a Covered Tax Agreement (as it may be modified by paragraph 2 or 3) that lists specific activities deemed not to constitute a permanent establishment shall not apply to a fixed place of business that

is used or maintained by an enterprise if the same enterprise or a closely related enterprise carries on business

activities at the same place or at another place in the same Contracting Jurisdiction and:

a) that place or other place constitutes a permanent establishment for the enterprise or the closely related enterprise under the provisions of a Covered Tax Agreement defining a permanent

establishment; or

b) the overall activity resulting from the combination of the activities carried on by the two enterprises at the same place, or by the same enterprise or closely related enterprises at the two

places, is not of a preparatory or auxiliary character,

provided that the business activities carried on by the two enterprises at the same place, or by the same

enterprise or closely related enterprises at the two places, constitute complementary functions that are part

of a cohesive business operation.

5. a) Paragraph 2 or 3 shall apply in place of the relevant parts of provisions of a Covered Tax Agreement that list specific activities that are deemed not to constitute a permanent establishment even if

the activity is carried on through a fixed place of business (or provisions of a Covered Tax

Agreement that operate in a comparable manner).

b) Paragraph 4 shall apply to provisions of a Covered Tax Agreement (as they may be modified by

paragraph 2 or 3) that list specific activities that are deemed not to constitute a permanent

establishment even if the activity is carried on through a fixed place of business (or provisions

of a Covered Tax Agreement that operate in a comparable manner).

6. A Party may reserve the right:

a) for the entirety of this Article not to apply to its Covered Tax Agreements;

b) for paragraph 2 not to apply to its Covered Tax Agreements that explicitly state that a list of specific activities shall be deemed not to constitute a permanent establishment only if each of

the activities is of a preparatory or auxiliary character;

c) for paragraph 4 not to apply to its Covered Tax Agreements.

7. Each Party that chooses to apply an Option under paragraph 1 shall notify the Depositary of its choice of Option. Such notification shall also include the list of its Covered Tax Agreements which contain a

provision described in subparagraph a) of paragraph 5, as well as the article and paragraph number of each

such provision. An Option shall apply with respect to a provision of a Covered Tax Agreement only where

all Contracting Jurisdictions have chosen to apply the same Option and have made such a notification with

respect to that provision.

5 DE ABRIL DE 2019____________________________________________________________________________________________________________

215