The remaining paragraphs of Article 5 are very important and can differ with each treaty.

For instance, in the treaty with Bangladesh, paragraphs 3 and 4  expand on what will, and will not be considered to be a PE.  Details such as a warehouse for storage will not be considered to be a PE but an employee with the ability to sign contracts will likely cause the business to have a PE.

There is often also a paragraph excluding a business from having a PE simply because they have an agent in the country.  Another standard exclusion ensures that owning a subsidiary located in the other country will not cause you to have a PE.

You always need to look at this article for ‘special’ circumstances.  Such as the Canada-US treaty which includes a rule on services where an individual is in the other country for more than 183 days or the Canada-Barbados treaty which includes rules on insurance risks and premiums.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. Please click accept to agree to the use of cookies. more information

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. We do not use cookies for marketing or promotion purposes. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.

Close