AUSTRALIAN TAX TREATIES

Singaporean Agreement  

Singaporean Protocol (No 1)  

ARTICLE 4  
Article 4 of the Agreement is omitted and the following Article is substituted:

" ARTICLE 4  


(1)
For the purposes of this Agreement, the term ' permanent establishment ' , in relation to an enterprise, means a fixed place of business through which the business of the enterprise is wholly or partly carried on.


(2)
The term ' permanent establishment ' includes but is not limited to -


(a) a place of management;


(b) a branch;


(c) an office;


(d) a store or other sales outlet;


(e) a factory;


(f) a workshop;


(g) a warehouse except where it is used solely for any of the purposes mentioned in paragraph (4);


(h) a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and


(i) a building site, or a construction, installation or assembly project, but only where such site or project or any combination of them continues for a period aggregating more than 6 months within any 12-month period.


(3)
An enterprise of a Contracting State shall be deemed to have a permanent establishment and to carry on trade or business through that permanent establishment in the other Contracting State if -


(a) it carries on supervisory activities in that other State for a period or periods aggregating more than 6 months within any 12-month period in connection with a building site, or a construction, installation or assembly project or any combination of them which is being undertaken in that other State; or


(b) substantial equipment is being used in that other State by, for or under contract with the enterprise.


(4)
An enterprise shall not be deemed to have a permanent establishment merely by reason of -


(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 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 activities which have a preparatory or auxiliary character for the enterprise, such as advertising, the supply of information or scientific research.


(5)
A person acting in one of the Contracting States on behalf of an enterprise of the other Contracting State, other than an agent of an independent status to whom paragraph (6) applies, shall be deemed to be a permanent establishment of the enterprise in the first-mentioned Contracting State if -


(a) the person has, and habitually exercises in the first-mentioned Contracting State, an authority to conclude contracts for or on behalf of the enterprise unless the exercise of such authority is limited to the purchase of goods or merchandise for that enterprise; or


(b) there is maintained in the first-mentioned Contracting State a stock of goods or merchandise belonging to the enterprise from which he or she regularly fills orders on behalf of the enterprise; or


(c) the person habitually secures orders in the first-mentioned Contracting State wholly or principally for the enterprise itself or for any other enterprise which is controlled by it or has a controlling interest in it; or


(d) in so acting the person manufactures or processes in that State for the enterprise goods or merchandise belonging to the enterprise.


(6)
An enterprise of one of the Contracting States shall not be deemed to have a permanent establishment in the other Contracting State merely because that enterprise carries on business in that other State through a broker, general commission agent, or any other agent of an independent status, where such broker or agent is acting in the ordinary course of that person ' s business.


(7)
The fact that a company which is a resident of one of the Contracting States 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. "




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