INTM264410 - Non-residents trading in the UK: permanent establishment: domestic and treaty law: fixed place of business: features of fixed place of business

Fixed place of business permanent establishment

Domestic law, other than listing examples, (see CTA2010/S1141(2)) does not define ‘fixed place of business’; consequently we need to look at the OECD Model Treaty Commentary.

The Commentary to Article 5 (sub-para 2) identifies the following characteristics that should all be present in a ‘fixed place of business PE’:

  1. there must be a place of business, normally premises or a site, although it can, in certain circumstances, be machinery or equipment (see INTM264420);
  2. the place of business must be fixed, that is it must be established at a distinct place and have a certain degree of permanence (see INTM264430), and
  3. the business must be carried on through this fixed place of business, normally by the personnel of the enterprise (see INTM264440).