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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
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DT: Ivory Coast: double taxation agreement, Article 5: Permanent Establishment

  1. For the purposes of this Convention, 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:

 

 

  1. a place of management;
  2. a branch;
  3. an office;
  4. a factory;
  5. a shop;
  6. a workshop;
  7. a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and
  8. a building site or temporary construction or assembly project or supervisory activities in connection therewith, where such site, temporary project or activities continue for a period of more than six months, or where such temporary project or activities, being incidental to the sale of machinery or equipment, continue for a period not exceeding six months and the charges payable for the temporary project or activities exceed 10 per cent of the sale price of the machinery or equipment.

 

  1. Notwithstanding the preceding provisions of this Article, the term `permanent establishment` shall be deemed not to include:

 

 

  1. the use of facilities solely for the purpose of storage or display of goods or merchandise belonging to the enterprise;
  2. the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage or display;
  3. the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
  4. the maintenance of a fixed place of business solely for the purpose of carrying on, for the enterprise, any other activity of a preparatory character.

 

  1. Notwithstanding the provisions of paragraphs (1) and (2) of this Article, where a person, other than an agent of an independent status to whom paragraph (6) of this Article applies, is acting in a Contracting State on behalf of an enterprise of the other Contracting State, that enterprise shall be deemed to have a permanent establishment in the first-mentioned State if the person:

 

 

  1. has and habitually exercises in that State an authority to conclude contracts on behalf of the enterprise; or
  2. has no such authority, but habitually maintains in the first-mentioned State a stock of goods or merchandise from which he regularly delivers goods or merchandise on behalf of the enterprise.

 

  1. An insurance enterprise of a Contracting State shall, except with regard to reinsurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other State or insures risks situated in that territory through an employee or representative who does not enter into the category of persons referred to in paragraph (6) of this Article.
  2. 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 commission agent or any other agent of an independent status, provided that such a person is acting in the ordinary course of his business. However if such an agent is required to devote the whole or substantially the whole of his time to the business of the enterprise he shall not be considered as an independent agent within the meaning of this paragraph.
  3. 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.