Article 7 - Business Profits

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..... ance with the provisions of paragraph 2 may be taxed in that other State. [ Para 1 of Article 7 ] Attribution of Profit and Elimination of Double taxation For the purposes of this Article and Article [23A] [23B] , the profits that are attributable in each Contracting State to the PE referred to in paragraph 1 are the profits it might be expected to make, in particular in its dealings with other parts of the enterprise, if it were a separate and independent enterprise engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the enterprise through the PE and through the other parts of the enterprise. [ Para 2 of Article .....

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..... r State but only so much of them as is attributable to (a) that permanent establishment; (b) sales in that other State of goods or merchandise of the same or similar kind as those sold through that permanent establishment; or (c) other business activities carried on in that other State of the same or similar kind as those effected through that permanent establishment. [ Para 1 of Article 7 ] Determination of Business Profit and allowed deduction of expenses Determination of business profit - Where an enterprise of a Contracting State carries on business in the other Contracting State through a permanent establishment situated therein, there shall in each Contracting State be attributed to that pe .....

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..... nts charged (otherwise than towards reimbursement of actual expenses), by the permanent establishment to the head office of the enterprise or any of its other offices, by way of royalties, fees or other similar payments in return for the use of patents or other rights, or by way of commission for specific services performed or for management, or, except in the case of a banking enterprise, by way of interest on moneys lent to the head office of the enterprise or any of its other offices . [ Para 3 of Article 7 ] Adoption of Method for Apportionment of Profit In so far as it has been customary in a Contracting State to determine the profits to be attributed to a PE on the basis .....

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