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HMRC internal manual

Double Taxation Relief Manual

From
HM Revenue & Customs
Updated
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DT: Jamaica: double taxation agreement, Article 4: Permanent Establishment

  1. For the purposes of this Agreement the term `permanent establishment` means a fixed place of business in which the business of the enterprise is wholly or partly carried on.
  2. The term `permanent establishment` shall include especially:

 

 

  1. a place of management;
  2. a branch;
  3. an office;
  4. a factory;
  5. a workshop;
  6. premises used as a sales outlet;
  7. a warehouse, in relation to a person providing storage facilities for others;
  8. a mine, quarry or other place of extraction of natural resources;
  9. a building site or construction or assembly project which exists for more than six months.

 

  1. The term `permanent establishment` shall not be deemed to include:

 

 

  1. the use of facilities solely for the purpose of storage, display or delivery 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, display or delivery;
  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 purchasing goods or merchandise, or for collecting information, for the enterprise;
  5. the maintenance of a fixed place of business solely for the purpose of advertising for the supply of information, for scientific research or for similar activities which have a preparatory or auxiliary character, for the enterprise.

 

  1. An enterprise of one of the territories shall be deemed to have a permanent establishment in the other territory-

 

 

  1. if it carries on the activity of providing the services within that other territory of public entertainers or athletes referred to in Article 16;
  2. if it maintains a dredge or other construction equipment within that other territory for a period or periods aggregating in the whole more than six months in any twelve month period.

 

  1. A person acting in one of the territories on behalf of an enterprise of the other territory-other than an agent of an independent status to whom paragraph (7) applies-shall be deemed to be a permanent establishment of the enterprise in the first-mentioned territory-

 

 

  1. if he has and habitually exercises in that territory, an authority to conclude contracts in the name of the enterprise, unless his activities are limited to the purchase of goods or merchandise for the enterprise;
  2. if he maintains in that first-mentioned territory a stock of goods or merchandise belonging to the enterprise from which he habitually fills orders or makes deliveries on behalf of the enterprise.

 

  1. An insurance enterprise of one of the territories shall, except in regard to reinsurance, be deemed to have a permanent establishment in the other territory if it collects premiums in that other territory or insures risks situated therein through an employee or agent but not including any such agent as is mentioned in paragraph (7).
  2. An enterprise of one of the territories shall not be deemed to have a permanent establishment in the other territory merely because it carries on business in that other territory through a broker, a general commission agent or any agent of an independent status, where such persons are acting in the ordinary course of their business and their activities are not devoted wholly or almost wholly to the business of that enterprise.
  3. The fact that a company which is a resident of one of the territories controls or is controlled by a company which is a resident of the other territory, or which carries on business in that other territory (whether through a permanent establishment or otherwise), shall not of itself constitute either company a permanent establishment of the other.