S.L. 123.166 Art. 7in a through a broker, provided that 8. The or is controlled which carries establishment permanent 1. property Contracting 2. The the law of the term shall in and equipment general law rights to to work, shall not be 3. The use, letting, or 4. The immovable 1. The that State through a business as on

An enterprise shall not be deemed to have a permanent establishment Contracting State merely because it carries on business in that State general commission agent or any other agent of an independent status, such persons are acting in the ordinary course of their business. fact that a company which is a resident of a Contracting State controls by a company which is a resident of the other Contracting State, or on business in that other State (whether through a permanent or otherwise), shall not of itself constitute either company a establishment of the other. CHAPTER 3

Taxation of Income

Article 6 Income from immovable property Income derived by a resident of a Contracting State from immovable (including income from agriculture or forestry) situated in the other State may be taxed in that other State. term "immovable property" shall have the meaning which it has under Contracting State in which the property in question is situated. The any case include property accessory to immovable property, livestock used in agriculture and forestry, rights to which the provisions of respecting landed property apply, usufruct of immovable property and variable or fixed payments as consideration for the working of, or the right mineral deposits, sources and other natural resources. Ships and aircraft regarded as immovable property. provisions of paragraph 1 shall apply to income derived from the direct use in any other form of immovable property. provisions of paragraphs 1 and 3 shall also apply to the income from property of an enterprise.

Article 7 Business profits profits of an enterprise of a Contracting State shall be taxable only in unless the enterprise carries on business in the other Contracting State permanent establishment situated therein. If the enterprise carries on aforesaid, the profits of the enterprise may be taxed in the other State but of them as is attributable to that permanent establishment. Subject to the provisions of paragraph 3, where an enterprise of a State carries on business in the other Contracting State through a establishment situated therein, there shall in each Contracting State be that permanent establishment the profits which it might be expected to were a distinct and separate enterprise engaged in the same or similar under the same or similar conditions and dealing wholly independently enterprise of which it is a permanent establishment. determining the profits of a permanent establishment, there shall be deductions expenses which are incurred for the purposes of the establishment, including executive and general administrative expenses whether in the State in which the permanent establishment is situated or as it has been customary in a Contracting State to determine the attributed to a permanent establishment on the basis of an apportionment of the total profits of the enterprise to its various parts, paragraph 2 shall preclude that Contracting State from determining the taxed by such an apportionment as may be customary; the method of adopted shall, however, be such that the result shall be in accordance principles contained in this Article.