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

From HM Revenue & Customs · International Manual

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.

Paragraph 6 of the 2017 Commentary to Article 5 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).