POSITIONS ON ARTICLE 5

(PERMANENT ESTABLISHMENT) AND ITS COMMENTARY

1. Considering the special problems in applying the provisions of the Model Convention to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources,Latviareserves the right to insert in a special Article provisions relating to such activities.(Amended on 15 July 2014 see History)

Paragraph 22. In paragraph 2, in addition to “the extraction of” natural resources,Argentina,Brazil,Gabon,Ivory Coast,Morocco, thePhilippines,Russia,Thailand,Tunisiaand theUnited Arab Emiratesreserve the right to refer to the “exploration for” such resources.(Amended on 22 July 2010 see History)

2.1 Indonesiareserves the right to add to paragraph 2 the exploration and exploitation of natural resources and a drilling rig or working ship used for exploration and exploitation of natural resources.(Added on 22 July 2010 see History)

2.2 Colombiareserves the right to replace the words “of extraction” with the words “relating to the exploration for or the exploitation” in XREFSTYLE=ParaLabel sub f).(Added on 15 July 2014 see History)

3. IndiaandIndonesiareserve the right to add to paragraph 2 additional subparagraphs that would cover a sales outlet and a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on.(Amended on 22 July 2010 see History)

4. India,Indonesia,ThailandandVietnamreserve the right to add to paragraph 2 an additional subparagraph that would cover a warehouse in relation to a person supplying storage facilities for others.(Amended on 22 July 2010 see History)

5. ArmeniaandUkrainereserve the right to add to paragraph 2 an additional subparagraph that would cover an installation, or structure for the exploration for natural resources and a warehouse or other structure used for the sale of goods.(Amended on 17 July 2008 see History)

6. GabonandVietnamreserve the right to add to paragraph 2 an additional subparagraph that would cover an installation structure or equipment used for the exploration for natural resources.(Amended on 28 January 2003 see History)

6.1 Argentina,GabonandIvory Coastreserve the right to add to paragraph 2 an additional subparagraph that would cover places where fishing activities take place.(Added on 28 January 2003 see History)

6.2 Kazakhstanreserves the right to add to paragraph 2 an additional subparagraph that would cover a pit, an installation and a structure for the exploration for natural resources.(Added on 17 July 2008 see History)

6.3 Azerbaijanreserves the right to add to paragraph 2 an additional subparagraph covering an installation, structure or vessel used for the exploration of natural resources.(Added on 15 July 2014 see History)

Paragraph 37. Argentinareserves its position on paragraph 3 and considers that any building site or construction, assembly, or installation project that lasts more than three months should be regarded as a permanent establishment.(Added on 23 October 1997 see History)

8. Armenia,Brazil,Colombia,Georgia,ThailandandVietnamreserve their position on paragraph 3 as they consider that any building site or construction, assembly or installation project which lasts more than six months should be regarded as a permanent establishment.(Amended on 15 July 2014 see History)

9. Albania, theDemocratic Republic of the CongoandHong Kong, Chinareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.(Amended on 15 July 2014 see History)

9.1 Serbiareserves the right to treat any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith as constituting a permanent establishment only if such site, project or activity lasts for a period of more than twelve months.(Amended on 22 July 2010 see History)

10. Bulgaria,Gabon,Ivory Coast,Malaysia,Morocco, thePeople’s Republic of China,South AfricaandTunisiareserve their right to negotiate the period of time after which a building site or construction, assembly, or installation project should be regarded as a permanent establishment under paragraph 3.(Amended on 17 July 2008 see History)

11. Argentina,Malaysia, thePeople’s Republic of China,Singapore,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise carries on supervisory activities in connection with a building site or a construction, assembly, or installation project that constitute a permanent establishment under paragraph 3 (in the case of Malaysia, the period for this permanent establishment is negotiated separately).(Amended on 15 July 2014 see History)

11.1 IndiaandIndonesiareserve the right to replace “construction or installation project” with “construction, installation or assembly project or supervisory activities in connection therewith” and reserve the right to negotiate the period of time for which these should last to be regarded as a permanent establishment.(Amended on 22 July 2010 see History)

12. Argentinareserves the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue within the country for a period or periods aggregating more than three months in any twelve month period commencing or ending in the fiscal year concerned.(Amended on 15 July 2014 see History)

13. Gabon,India,Indonesia,Ivory Coast,Morocco, andTunisiareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services through employees or other personnel engaged by the enterprise for such purpose but only where such activities continue for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.(Amended on 22 July 2010 see History)

13.1 Singaporereserves the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services through employees or other personnel engaged by the enterprise for such purpose but only where the employees or other personnel are present in the State for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.(Added on 15 July 2014 see History)

14. Albania,Armenia,Azerbaijan,Lithuania,Serbia,South Africa,Thailand,VietnamandHong Kong, Chinareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project [other than in the case of Armenia]), within the country for a period or periods aggregating more than six months within any twelve month period.(Amended on 15 July 2014 see History)

14.1 TheDemocratic Republic of the Congo,Gabon,Ivory Coast,Latvia,Morocco,South AfricaandTunisiareserve the right to deem any person performing professional services or other activities of an independent character to have a permanent establishment if that person is present in the State for a period or periods exceeding in the aggregate 183 days in any twelve month period.(Amended on 22 July 2010 see History)

14.2 Lithuaniareserves the right to insert special provisions regarding a permanent establishment relating to activities carried on in a Contracting State in connection with the exploration or exploitation of natural resources.(Replaced on 15 July 2014 see History)

14.3 Argentinareserves the right to treat an enterprise as having a permanent establishment if the enterprise carries on activities in that State related to the exploitation or extraction of natural resources, including fishing activities, without a fixed place of business during a period exceeding three months in any twelve month period commencing or ending in the fiscal year concerned.(Replaced on 15 July 2014 see History)

14.4 Indonesiareserves the right to insert a provision that deems a permanent establishment to exist if, for more than a negotiated period, an installation, drilling rig or ship is used for the exploration of natural resources.(Amended on 15 July 2014 see History)

14.5 Indonesia, theUnited Arab EmiratesandVietnamreserve the right to tax income derived from activities relating to exploration and exploitation of natural resources.(Amended on 22 July 2010 see History)

14.6 South Africareserves the right to insert a provision that deems a permanent establishment to exist if, for more than six months, an enterprise conducts activities relating to the exploration or exploitation of natural resources.(Added on 17 July 2008 see History)

14.7 (Deleted on 15 July 2014 see History)

14.8 Colombiareserves the right to deem an enterprise to have a permanent establishment whenever it carries on activities in the other Contracting State in connection with the exploration for or the exploitation of natural resources, as well as in certain circumstances where services are performed.(Added on 15 July 2014 see History)

Paragraph 415. Albania,Argentina,Armenia,Azerbaijan,Gabon,India,Indonesia,Ivory Coast,Malaysia,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve their position on paragraph 4 as they consider that the term “delivery” should be deleted from subparagraphs a) and b).(Amended on 15 July 2014 see History)

16. Albania,ArgentinaandThailandreserve their position on XREFSTYLE=ParaLabel sub f).(Amended on 17 July 2008 see History)

16.1 Colombiareserves the right to provide that the activities mentioned in subparagraphs a) to d) are subject to the requirement that, on a case-by-case basis, they have a preparatory or auxiliary character.(Added on 15 July 2014 see History)

16.2 TheDemocratic Republic of the Congoreserves its position on XREFSTYLE=ParaLabelPlural sub d), e)and f).(Added on 17 July 2008 see History)

Paragraph 517. Albania,Argentina,Armenia,Azerbaijan,Gabon,India,Indonesia,Ivory Coast,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise on behalf of the enterprise.(Amended on 15 July 2014 see History)

17.1 India,MalaysiaandThailandreserve the right to treat an enterprise of a Contracting State as having a permanent establishment in the other Contracting State if a person habitually secures orders in the other Contracting State wholly or almost wholly for the enterprise.(Amended on 22 July 2010 see History)

17.2 Indonesiareserves the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise, other than an independent agent, manufactures or processes for the enterprise goods or merchandise belonging to the enterprise.(Added on 22 July 2010 see History)

Paragraph 618. Albania,Argentina,Azerbaijan,Gabon,Ivory Coast,Lithuania,Morocco,Serbia,Thailand,TunisiaandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.(Amended on 15 July 2014 see History)

18.1 (Deleted on 22 July 2010 see History)

19. Colombia,Gabon,India,Indonesia,Ivory Coast,Morocco,Russia,Thailand,TunisiaandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance (other than in the case of India), be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6applies.(Amended on 15 July 2014 see History)

19.1 Indiareserves the right to make it clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.(Added on 17 July 2008 see History)

20. Argentina,India,MoroccoandVietnamdo not agree with the words “the twelve month test applies to each individual site or project” found in paragraph 18 of the Commentary. They consider that a series of consecutive short term sites or projects operated by a contractor would give rise to the existence of a permanent establishment in the country concerned.(Amended on 15 July 2014 see History)

21. Bulgaria,SerbiaandSingaporewould add to paragraph 33 of the Commentary on Article 5 their views that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.(Amended on 15 July 2014 see History)

22. Bulgariadoes not adhere to the interpretation, given in paragraph 17 of the Commentary on Article 5, and is of the opinion that supervision of a building site or a construction project, where carried on by another person, are not covered by paragraph 3 of the Article, if not expressly provided for.(Amended on 15 July 2014 see History)

23. Brazildoes not agree with the interpretation provided in XREFSTYLE=ParaLabelPlural to 42.10 on electronic commerce, especially in view of the principle of taxation at the source of payments in its legislation.(Added on 28 January 2003 see History)

23.1 (Deleted on 22 July 2010 see History)

24. Indiadeems as essential to take into consideration that irrespective of the meaning given to the third sentence of paragraph 1.1 — as far as the method for computing taxes is concerned, national systems are not affected by the new wording of the modeli.e.by the elimination of Article 14.(Added on 17 July 2008 see History)

25. Azerbaijan,IndiaandMalaysiado not agree with the interpretation given in XREFSTYLE=ParaLabelPlural (first part of the paragraph) and 5.4 (first part of the paragraph); they are of the view that these examples could also be regarded as constituting permanent establishments.(Amended on 15 July 2014 see History)

25.1 Argentinadoes not agree with the interpretation given in paragraph 5.3.(Added on 15 July 2014 see History)

25.2 Singaporedoes not agree with the interpretation given in paragraph 5.4 (first part of the paragraph) and is of the view that the example could constitute a permanent establishment.(Added on 15 July 2014 see History)

26. Indiadoes not agree with the interpretation given in paragraph 8; it is of the view that tangible or intangible properties by themselves may constitute a permanent establishment of the lessor in certain circumstances.(Added on 17 July 2008 see History)

26.1 Argentinadoes not agree with the interpretation given in paragraph 8; it is of the view that the letting or leasing of tangible or intangible property by themselves may constitute a permanent establishment of the lessor in certain circumstances, particularly where the lessor supplies personnel after installation to operate the equipment.(Added on 15 July 2014 see History)

27. Indiadoes not agree with the interpretation given in paragraph 10; it is of the view that ICS equipment may constitute a permanent establishment of the lessor in certain circumstances.(Added on 17 July 2008 see History)

28. Indiadoes not adhere to the interpretation given in XREFSTYLE=ParaLabelPlural and 42.25 concerning the list of examples of paragraph 2 of the Article; it is of the view that the examples can always be regarded as constitutinga prioripermanent establishments.(Added on 17 July 2008 see History)

29. Indiadoes not agree with the interpretation given in paragraph 23; it would not include scientific research in the list of examples of activities indicative of preparatory or auxiliary nature.(Added on 17 July 2008 see History)

30. Indiadoes not agree with the interpretation given in paragraph 25; it is of the view that when an enterprise has established an office (such as a commercial representation office) in a country, and the employees working at that office are substantially involved in the negotiation of contracts for the import of products or services into that country, the office will in most cases not fall within paragraph 4 of Article 5. Substantial involvement in the negotiations exists when the essential parts of the contract — the type, quality, and amount of goods, for example, and the time and terms of delivery are determined by the office. These activities form a separate and indispensable part of the business activities of the foreign enterprise, and are not simply activities of an auxiliary or preparatory character.(Added on 17 July 2008 see History)

31. ArgentinaandIndiado not agree with the interpretation given in paragraph 33; they are of the view that the mere fact that a person has attended or participated in negotiations in a State between an enterprise and a client, can in certain circumstances, be sufficient, by itself, to conclude that the person has exercised in that State an authority to conclude contracts in the name of the enterprise. Argentina and India are also of the view that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.(Amended on 15 July 2014 see History)

32. Indiadoes not agree with the interpretation given in paragraph 42; it is of the view that where a company (enterprise) resident of a State is a member of a multinational group and is engaged in manufacture or providing services for and on behalf of another company (enterprise) of the same group which is resident of the other State, then the first company may constitute a permanent establishment of the latter if other requirements of Article 5 are satisfied.(Added on 17 July 2008 see History)

33. Indiadoes not agree with the interpretation given in paragraph 42.2; it is of the view that website may constitute a permanent establishment in certain circumstances.(Added on 17 July 2008 see History)

34. Indiadoes not agree with the interpretation given in paragraph 42.3; it is of the view that, depending on the facts, an enterprise can be considered to have acquired a place of business by virtue of hosting its website on a particular server at a particular location.(Added on 17 July 2008 see History)

34.1 Argentinadoes not agree with the statement given in paragraph 42.13, that the taxation by a State of profits from services performed in its territory does not necessarily represent optimal tax treaty policy.(Added on 15 July 2014 see History)

35. Indiadoes not agree with the interpretation given in XREFSTYLE=ParaLabelPlural and 42.15 that a service permanent establishment will be created only if services are performed in the source State. It is of the view that furnishing of services is sufficient for creation of a service permanent establishment.(Added on 17 July 2008 see History)

36. Indiadoes not agree with the interpretation given in XREFSTYLE=ParaLabelPlural and 42.46, it is of the view that taxation rights may exist in a state even when services are furnished by the non-residents from outside that State. It is also of the view that the taxation principle applicable to the profits from sale of goods may not apply to the income from furnishing of services.(Added on 17 July 2008 see History)

37. Indiadoes not agree with the interpretation given in paragraph 42.19 that only the profits derived from services should be taxed and the provisions that are included in bilateral Conventions which allow a State to tax the gross amount of the fees paid for certain services is not an appropriate way of taxing services.(Added on 17 July 2008 see History)

38. Indiadoes not agree with the conclusions given in paragraph 42.22 that taxation should not extend to services performed outside the territory of a State; that taxation should apply only to the profits from these services rather than to the payments for them, and that there should be a minimum level of presence in a State before such taxation is allowed.(Added on 17 July 2008 see History)

38.1 Argentinadoes not fully agree with the interpretation given in paragraphs 42.18, 42.19 and 42.22.(Added on 15 July 2014 see History)

39. Indiadoes not agree with the interpretation given in paragraph 42.31; it is of the view that for furnishing services in a State, physical presence of an individual is not essential.(Added on 17 July 2008 see History)

40. Indiadoes not agree with the interpretation given in XREFSTYLE=ParaLabelPlural and 42.43.(Added on 17 July 2008 see History)

41. Indiadoes not agree with the interpretation given in example 3 of paragraph 42.44 concerning the taxability of ZCO.(Added on 17 July 2008 see History)

42. Brazildoes not agree with the interpretation provided for in XREFSTYLE=ParaLabelPlural to 42.48 of the Commentary on the taxation of services, especially in view of the principle of taxation at source of payments in its legislation.(Added on 17 July 2008 see History)

43. Indiadoes not agree with the interpretation in paragraph 5.5 of the Commentary on Article 5 according to which a satellite’s footprint in the space of a source country cannot be treated as a permanent establishment. India is of the view that in such a case, the source state not only contributes its customer base but also provides infrastructure for reception of the satellite telecast or telecommunication process. India is also of the view that a satellite’s footprint falls both in the international and national space. The footprint has a fixed location, has a value and can be used for commercial purposes. Accordingly, it can be treated as a fixed place of business in the space in the jurisdiction of a source country.(Added on 22 July 2010 see History)

44. Indiadoes not agree with the interpretation in paragraph 9.1 of the Commentary on Article 5 as it considers that a roaming call is a composite process which requires a composite use of various pieces of equipment located in the source and residence countries and the distinction proposed in paragraph 9.1 was neither intended by the wording of Article 5 nor logical.(Added on 22 July 2010 see History)

45. Indiadoes not agree with the interpretation in the last two sentences of paragraph 26.1 of the Commentary on Article 5 according to which even undersea cables and pipelines lying in the territorial jurisdiction of a source country cannot be considered as permanent establishment of an enterprise.(Added on 22 July 2010 see History)

46. Regarding paragraph 38,Colombiabelieves that the arm’s length principle should also be considered in determining whether or not an agent is of an independent status for purposes of paragraph 6 of the Article and wishes, when necessary, to add wording to its conventions to clarify that this is how the paragraph should be interpreted.(Added on 15 July 2014 see History)

Paragraph 1Amended on 15 July 2014, by deleting Lithuania from the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 23 October 1997 and until 15 July 2014, paragraph 1 read as follows:“1. Considering the special problems in applying the provisions of the Model Convention to activities carried on offshore in a Contracting State in connection with the exploration or exploitation of the sea bed, its subsoil and their natural resources,LatviaandLithuaniareserve the right to insert in a special Article provisions relating to such activities.”

Paragraph 1 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 2Amended on 22 July 2010, by changing the list of countries indicating the position by adding the United Arab Emirates and deleting Chile, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 2 read as follows:“2. In paragraph 2, in addition to “the extraction of” natural resources,Argentina,Brazil,Chile,Gabon,Ivory Coast,Morocco, thePhilippines,Russia,ThailandandTunisiareserve the right to refer to the “exploration for” such resources.”

Paragraph 2 was previously amended on 17 July 2008, by adding Brazil and Chile to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 2 read as follows:“2. In paragraph 2, in addition to “the extraction of” natural resources,Argentina,Gabon,Ivory Coast,Morocco, thePhilippines,Russia,ThailandandTunisiareserve the right to refer to the “exploration for” such resources.”

Paragraph 2 was previously amended on 28 January 2003, by adding Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position and by moving the last sentence into a new paragraph 6.1, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 2 read as follows:“2. In paragraph 2, in addition to “the extraction of” natural resources,Argentina,thePhilippines,RussiaandThailandreserve the right to refer to the “exploration for” such resources.Argentinaalso reserves the right to include in the paragraph places where fishing activities take place.”

Paragraph 2 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 2.1Added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.

Paragraph 2.2Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 3Amended on 22 July 2010, by adding Indonesia to the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 3 read as follows:“3. Indiareserves the right to add to paragraph 2 additional subparagraphs that would cover a sales outlet and a farm, plantation or other place where agricultural, forestry, plantation or related activities are carried on.”

Paragraph was 3 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 3 as it read before 15 July 2005 was deleted by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 23 October 1997 and until 15 July 2005, paragraph 3 read as follows:“3. Malaysiareserves the right to add to paragraph 2 an additional subparagraph that would cover a farm or plantation.”

Paragraph 3 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 4Amended on 22 July 2010, by adding Indonesia as a country indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 4 read as follows:“4. India,ThailandandVietnamreserve the right to add to paragraph 2 an additional subparagraph that would cover a warehouse in relation to a person supplying storage facilities for others.”

Paragraph 4 was previously amended on 17 July 2008, by adding India to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 23 October 1997 and until 17 July 2008, paragraph 4 read as follows:“4. ThailandandVietnamreserve the right to add to paragraph 2 an additional subparagraph that would cover a warehouse in relation to a person supplying storage facilities for others.”

Paragraph 4 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 5Amended on 17 July 2008, by adding Armenia to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 23 October 1997 and until 17 July 2008, paragraph 5 read as follows:“5. Ukrainereserves the right to add to paragraph 2 an additional subparagraph that would cover an installation, or structure for the exploration for natural resources and a warehouse or other structure used for the sale of goods.”

Paragraph 5 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 6Amended on 28 January 2003, by adding Gabon as a country indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 6 read as follows:“6. Vietnamreserves the right to add to paragraph 2 an additional subparagraph that would cover an installation structure or equipment used for the exploration for natural resources.”

Paragraph 6 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 6.1Added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. Paragraph 6.1 corresponds to the last sentence of paragraph 2 as it read before 28 January 2003 (see history paragraph 2).

Paragraph 6.2Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 6.3Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 7Included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 8Amended on 15 July 2014, by adding Colombia and Georgia to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 8 read as follows:“8. Armenia,Brazil,ThailandandVietnamreserve their position on paragraph 3 as they consider that any building site or construction, assembly or installation project which lasts more than six months should be regarded as a permanent establishment.”

Paragraph 8 was previously amended on 22 July 2010, by deleting Chile from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 8 read as follows:“8. Armenia,Brazil,Chile,ThailandandVietnamreserve their position on paragraph 3 as they consider that any building site or construction, assembly or installation project which lasts more than six months should be regarded as a permanent establishment.”

Paragraph 8 was previously amended on 17 July 2008, by adding Armenia and Chile to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 23 October 1997 and until 17 July 2008, paragraph 8 read as follows:“8. Brazil,ThailandandVietnamreserve their position on paragraph 3 as they consider that any building site or construction, assembly or installation project which lasts more than six months should be regarded as a permanent establishment.”

Paragraph 8 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 9Amended on 15 July 2014, by deleting Lithuania from the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 9 read as follows:“9. Albania, theDemocratic Republic of the Congo,LithuaniaandHong Kong, Chinareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.”

Paragraph 9 was previously amended on 22 July 2010, by changing the list of countries indicating the position by adding Hong Kong, China and deleting Latvia, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 9 read as follows:“9. Albania, theDemocratic Republic of the Congo,LatviaandLithuaniareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.”

Paragraph 9 was previously amended on 17 July 2008, by adding the Democratic Republic of the Congo to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 9 read as follows:“9. Albania,LatviaandLithuaniareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.”

Paragraph 9 was previously amended on 15 July 2005, by deleting Estonia from the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 9 read as follows:“9. Albania,Estonia,LatviaandLithuaniareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.”

Paragraph 9 was previously amended on 28 January 2003, by adding Albania to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 9 read as follows:“9. Estonia,LatviaandLithuaniareserve their position on paragraph 3 and consider that any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith constitutes a permanent establishment if such site, project or activity lasts for a period of more than six months.”

Paragraph 9 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 9.1Amended on 22 July 2010, by deleting Slovenia from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 9.1 read as follows:“9.1 SerbiaandSloveniareserve the right to treat any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith as constituting a permanent establishment only if such site, project or activity lasts for a period of more than twelve months.”

Paragraph 9.1 was previously amended on 17 July 2008, by replacing Serbia and Montenegro with Serbia as a country indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 9.1 read as follows:“9.1 Serbia and MontenegroandSloveniareserve the right to treat any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith as constituting a permanent establishment only if such site, project or activity lasts for a period of more than twelve months.”

Paragraph 9.1 was previously amended on 15 July 2005, by adding Serbia and Montenegro as a country indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 9.1 read as follows:“9.1 Sloveniareserves the right to treat any building site, construction, assembly or installation project or a supervisory or consultancy activity connected therewith as constituting a permanent establishment only if such site, project or activity lasts for a period of more than twelve months.”

Paragraph 9.1 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 10Amended on 17 July 2008, by replacing “China” with “the People’s Republic of China”, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 10 read as follows:“10. Bulgaria,China,Gabon,Ivory Coast,Malaysia,Morocco,South AfricaandTunisiareserve their right to negotiate the period of time after which a building site or construction, assembly, or installation project should be regarded as a permanent establishment under paragraph 3.”

Paragraph 10 was previously amended on 15 July 2005, by adding Malaysia to the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 10 read as follows:“10. Bulgaria,China,Gabon,Ivory Coast,Morocco,South Africa and Tunisiareserve their right to negotiate the period of time after which a building site or construction, assembly, or installation project should be regarded as a permanent establishment under paragraph 3.”

Paragraph 10 was previously amended on 28 January 2003, by adding Bulgaria, Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 10 read as follows:“10. China, andSouth Africareserve their right to negotiate the period of time after which a building site or construction, assembly, or installation project should be regarded as a permanent establishment under paragraph 3.”

Paragraph 10 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 11Amended on 15 July 2014, by adding Singapore to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 17 July 2008 and until 15 July 2014, paragraph 11 read as follows:“11. Argentina,Malaysia, thePeople’s Republic of China, South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise carries on supervisory activities in connection with a building site or a construction, assembly, or installation project that constitute a permanent establishment under paragraph 3 (in the case of Malaysia, the period for this permanent establishment is negotiated separately).”

Paragraph 11 was previously amended on 17 July 2008, by replacing “China” with “the People’s Republic of China”, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 11 read as follows:“11. Argentina,China,Malaysia,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise carries on supervisory activities in connection with a building site or a construction, assembly, or installation project that constitute a permanent establishment under paragraph 3 (in the case of Malaysia, the period for this PE is negotiated separately).”

Paragraph 11 was previously amended on 15 July 2005, by changing the list of countries indicating the position by adding Malaysia and deleting Romania, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 23 October 1997 and until 15 July 2005, paragraph 11 read as follows:“11. Argentina,China,Romania,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise carries on supervisory activities in connection with a building site or a construction, assembly, or installation project that constitute a permanent establishment under paragraph 3.”

Paragraph 11 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 11.1Amended on 22 July 2010, by adding Indonesia as a country indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 11.1 read as follows:“11.1 Indiareserves the right to replace “construction or installation project” with “construction, installation or assembly project or supervisory activities in connection therewith” and reserves its right to negotiate the period of time for which they should last to be regarded as a permanent establishment.”

Paragraph 11.1 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 12Amended on 15 July 2014 by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 23 October 1997 and until 15 July 2014, paragraph 12 read as follows:“12. Argentinareserves the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than three months.”

Paragraph 12 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 13Amended on 22 July 2010, by adding Indonesia to the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 13 read as follows:“13. Gabon,India,Ivory Coast,Morocco, andTunisiareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services through employees or other personnel engaged by the enterprise for such purpose but only where such activities continue for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.”

Paragraph 13 was previously amended on 17 July 2008, by adding India to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 13 read as follows:“13. Gabon,Ivory Coast,Morocco, andTunisiareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services through employees or other personnel engaged by the enterprise for such purpose but only where such activities continue for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.”

Paragraph 13 was previously amended on 15 July 2005 by deleting Romania from the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 13 read as follows:“13. Gabon,Ivory Coast,Morocco,RomaniaandTunisiareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services through employees or other personnel engaged by the enterprise for such purpose but only where such activities continue for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.”

Paragraph 13 was previously amended on 28 January 2003, by adding Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 13 read as follows:“13. Romaniareserves the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services through employees or other personnel engaged by the enterprise for such purpose but only where such activities continue for the same project or a connected project for a period or periods aggregating more than a period to be negotiated.”

Paragraph 13 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 13.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 14Amended on 15 July 2014, by adding Azerbaijan to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 14 read as follows:“14. Albania,Armenia,Lithuania,Serbia,South Africa,Thailand,VietnamandHong Kong, Chinareserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project [other than in the case of Armenia]), within the country for a period or periods aggregating more than six months within any twelve month period.”

Paragraph 14 was previously amended on 22 July 2010, by adding Hong Kong, China to the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 14 read as follows:“14. Albania,Armenia,Lithuania,Serbia,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project (other than in the case of Armenia)), within the country for a period or periods aggregating more than six months within any 12-month period.”

Paragraph 14 was previously amended on 17 July 2008, by changing the list of countries indicating the position by adding Armenia and Lithuania, deleting Slovenia and replacing Serbia and Montenegro with Serbia, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 14 read as follows:“14. Albania,Serbia and Montenegro,Slovenia,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any 12-month period.”

Paragraph 14 was previously amended on 15 July 2005, by adding Serbia and Montenegro to the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 14 read as follows:“14. Albania,Slovenia,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any 12-month period.”

Paragraph 14 was previously amended on 28 January 2003, by changing the list of countries indicating the position by adding Albania and Slovenia and deleting Slovakia, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 29 April 2000 and until 28 January 2003, paragraph 14 read as follows:“14. Slovakia,South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any 12-month period.”

Paragraph 14 was previously amended on 29 April 2000, by adding Slovakia to the list of countries indicating the position, by the report entitled “The 2000 Update to the Model Tax Convention”, adopted by the OECD Council on 29 April 2000. After 23 October 1997 and until 29 April 2000, paragraph 14 read as follows:“14. South Africa,ThailandandVietnamreserve the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, but only where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any 12-month period.”

Paragraph 14 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 14.1Amended on 22 July 2010, by deleting Chile from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 14.1 read as follows:“14.1 Chile, theDemocratic Republic of the Congo,Gabon,Ivory Coast,Latvia,Morocco,South AfricaandTunisiareserve the right to deem any person performing professional services or other activities of an independent character to have a permanent establishment if that person is present in the State for a period or periods exceeding in the aggregate 183 days in any twelve month period.”

Paragraph 14.1 was previously amended on 17 July 2008, by adding Chile and the Democratic Republic of the Congo to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 14.1 read as follows:“14.1 Gabon,Ivory Coast,Latvia,Morocco,South AfricaandTunisiareserve the right to deem any person performing professional services or other activities of an independent character to have a permanent establishment if that person is present in the State for a period or periods exceeding in the aggregate 183 days in any twelve month period.”

Paragraph 14.1 was previously amended on 28 January 2003, by adding Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 29 April 2000 and until 28 January 2003, paragraph 14.1 read as follows:“14.1 LatviaandSouth Africareserve the right to deem any person performing professional services or other activities of an independent character to have a permanent establishment if that person is present in the State for a period or periods exceeding in the aggregate 183 days in any twelve month period.”

Paragraph 14.1 was added on 29 April 2000 by the report entitled “The 2000 Update to the Model Tax Convention” adopted by the OECD Council on 29 April 2000.

Paragraph 14.2Replaced on 15 July 2014 when paragraph 14.2 was deleted and a new paragraph 14.2 was added by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 28 January 2003 and until 15 July 2014, paragraph 14.2 read as follows:“14.2 BulgariaandEstoniareserve the right to deem an individual performing professional services or other services of an independent character to have a permanent establishment for the purposes of the Convention if they are present in the other State for a period or periods exceeding in the aggregate 183 days in any twelve month period.”

Paragraph 14.2 was amended on 28 January 2003, by adding Bulgaria as a country indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 29 April 2000 and until 28 January 2003, paragraph 14.2 read as follows:“14.2 Estoniareserves the right to deem an individual performing professional services or other services of an independent character to have a permanent establishment for the purposes of the Convention if they are present in the other State for a period or periods exceeding in the aggregate 183 days in any twelve month period.”

Paragraph 14.2 was added on 29 April 2000 by the report entitled “The 2000 Update to the Model Tax Convention” adopted by the OECD Council on 29 April 2000.

Paragraph 14.3Replaced on 15 July 2014 when paragraph 14.3 was deleted and a new paragraph 14.3 was added by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 28 January 2003 and until 15 July 2014, paragraph 14.3 read as follows:“14.3. Bulgariareserves the right to treat an enterprise as having a permanent establishment if the enterprise furnishes services, including consultancy services, through employees or other personnel engaged by the enterprise for such purpose, where activities of that nature continue (for the same or a connected project) within the country for a period or periods aggregating more than six months within any twelve month period.”

Paragraph 14.3 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 14.4Amended on 15 July 2014, by deleting Bulgaria from the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 14.4 read as follows:“14.4 BulgariaandIndonesiareserve the right to insert a provision that deems a permanent establishment to exist if, for more than a negotiated period, an installation, drilling rig or ship is used for the exploration of natural resources.”

Paragraph 14.4 was previously amended on 22 July 2010, by adding Indonesia as a country indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 28 January 2003 and until 22 July 2010, paragraph 14.4 read as follows:“14.4 Bulgariareserves the right to insert a provision that deems a permanent establishment to exist if, for more than a negotiated period, an installation, drilling rig or ship is used for the exploration of natural resources.”

Paragraph 14.4 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 14.5Amended on 22 July 2010, by adding Indonesia and the United Arab Emirates as countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 14.5 read as follows:“14.5 Vietnamreserves the right to tax income derived from activities relating to exploration and exploitation of natural resources.”

Paragraph 14.5 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 14.6Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 14.7Deleted on 15 July 2014 by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 17 read as follows:“14.7 Israelreserves the right to insert a provision according to which an installation, drilling rig or ship used for activities connected with the exploration of natural resources shall be treated as constituting a permanent establishment in a Contracting State if those activities last in aggregate more than 365 days in that State in any two year period.”

Paragraph 14.7 was replaced on 22 July 2010 when it was deleted and a new paragraph 14.7 was added by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 14.7 read as follows:“14.7 Chilereserves the right to treat a person as having a permanent establishment if the person performs professional services and other activities of independent character, including planning, supervisory or consultancy activities, with a certain degree of continuity.”

Paragraph 14.7 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 14.8Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 15Amended on 15 July 2014, by adding Azerbaijan to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 15 read as follows:“15. Albania,Argentina,Armenia,Gabon,India,Indonesia,Ivory Coast,Malaysia,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve their position on paragraph 4 as they consider that the term “delivery” should be deleted from subparagraphs a) and b).”

Paragraph 15 was previously amended on 22 July 2010, by adding Indonesia to the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 15 read as follows:“15. Albania,Argentina,Armenia,Gabon,India,Ivory Coast,Malaysia,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve their position on paragraph 4 as they consider that the term “delivery” should be deleted from subparagraphs a> ) and b> ).”

Paragraph 15 was previously amended on 17 July 2008, by adding Armenia, India and Malaysia to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 15 read as follows:“15. Albania,Argentina,Gabon,Ivory Coast,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve their position on paragraph 4 as they consider that the term “delivery” should be deleted from subparagraphs a) and b).”

Paragraph 15 was previously amended on 28 January 2003, by adding Albania, Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 15 read as follows:“15. Argentina,Russia,Thailand,UkraineandVietnamreserve their position on paragraph 4 as they consider that the term “delivery” should be deleted from subparagraphs a) and b).”

Paragraph 15 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 16Amended on 17 July 2008, by deleting Russia from the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 16 read as follows:“16. Albania,Argentina,RussiaandThailandreserve their position on subparagraph 4 f).”

Paragraph 16 was previously amended on 15 July 2005, by deleting Brazil from the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 16 read as follows:“16. Albania,Argentina,Brazil,RussiaandThailandreserve their position on subparagraph 4 f).”

Paragraph 16 was previously amended on 28 January 2003, by adding Albania to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 16 read as follows:“16. Albania,Argentina,Brazil,RussiaandThailandreserve their position on subparagraph 4 f).”

Paragraph 16 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 16.1Added on 15 July 2014 by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014.

Paragraph 16.1 as it read before 22 July 2010 was deleted by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 16.1 read as follows:“16.1 Chilereserves the right to amend paragraph 4 by eliminating subparagraph f) and replacing subparagraph e) with the corresponding text of the 1963 Draft Model Tax Convention.”

Paragraph 16.1 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 16.2Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 17Amended on 15 July 2014, by adding Argentina and Azerbaijan to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 17 read as follows:“17. Albania,Armenia,Gabon,India,Indonesia,Ivory Coast,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise on behalf of the enterprise.”

Paragraph 17 was previously amended on 22 July 2010, by changing the list of countries indicating the position by adding Indonesia and deleting Malaysia, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 17 read as follows:“17. Albania,Armenia,Gabon,India,Ivory Coast,Malaysia,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise (in the case of Malaysia fills orders) on behalf of the enterprise.”

Paragraph 17 was previously amended on 17 July 2008, by adding Armenia and India to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 17 read as follows:“17. Albania,Gabon,Ivory Coast,Malaysia,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise (in the case of Malaysia fills orders) on behalf of the enterprise.”

Paragraph 17 was previously amended on 15 July 2005, by adding Malaysia to the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 17 read as follows:“17. Albania,Gabon,Ivory Coast,Morocco,Russia,Thailand,Tunisia,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise on behalf of the enterprise.”

Paragraph 17 was previously amended on 28 January 2003, by adding Albania, Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 17 read as follows:“17. Russia,Thailand,UkraineandVietnamreserve the right to treat an enterprise as having a permanent establishment if a person acting on behalf of the enterprise habitually maintains a stock of goods or merchandise in a Contracting State from which the person regularly delivers goods or merchandise on behalf of the enterprise.”

Paragraph 17 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 17.1Amended on 22 July 2010, by addingMalaysiaandThailandas countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 17.1 read as follows:“17.1 Indiareserves the right to treat an enterprise of a Contracting State as having a permanent establishment in the other Contracting State if a person habitually secures orders in the other Contracting State wholly or almost wholly for the enterprise.”

Paragraph 17.1 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 17.2Added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.

Paragraph 18Amended on 15 July 2014, by changing the list of countries indicating the position by adding Argentina and Azerbaijan and deleting Estonia, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 18 read as follows:“18. Albania,Gabon,Estonia,Ivory Coast,Lithuania,Morocco,Serbia,Thailand,TunisiaandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.”

Paragraph 18 was previously amended on 22 July 2010, by deleting Slovenia from the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 18 read as follows:“18. Albania,Gabon,Estonia,Ivory Coast,Lithuania,Morocco,Serbia,Slovenia,Thailand,TunisiaandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.”

Paragraph 18 was previously amended on 17 July 2008, by changing the list of countries indicating the position by deleting Latvia and replacing Serbia and Montenegro with Serbia, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 18 read as follows:“18. Albania,Gabon,Estonia,Ivory Coast,Latvia,Lithuania,Morocco,Serbia and Montenegro,Slovenia,Thailand,TunisiaandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.”

Paragraph 18 was previously amended on 15 July 2005, by adding Serbia and Montenegro to the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 18 read as follows:“18. Albania,Gabon,Estonia,Ivory Coast,Latvia,Lithuania,Morocco,Slovenia,Thailand,TunisiaandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.”

Paragraph 18 was previously amended on 28 January 2003, by adding Albania, Gabon, Ivory Coast, Morocco, Slovenia and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 18 read as follows:“18. Estonia,Latvia,Lithuania,ThailandandVietnamreserve the right to make clear that an agent whose activities are conducted wholly or almost wholly on behalf of a single enterprise will not be considered an agent of an independent status.”

Paragraph 18 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 18.1Deleted on 22 July 2010 by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 18.1 read as follows:“18.1 Chilebelieves that the arm’s length principle should also be considered in determining whether or not an agent is of an independent status for purposes of paragraph 6 of the Article and wishes to add such wording to its conventions to clarify that this is how the paragraph should be interpreted.”

Paragraph 18.1 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 19Amended on 15 July 2014, by adding Colombia to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 19 read as follows:“19. Gabon,India,Indonesia,Ivory Coast,Morocco,Russia,Thailand,TunisiaandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance (other than in the case of India), be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.”

Paragraph 19 was previously amended on 22 July 2010, by adding Indonesia to the list of countries indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 19 read as follows:“19. Gabon,India,Ivory Coast,Morocco,Russia,Thailand,TunisiaandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance (other than in the case of India), be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.”

Paragraph 19 was previously amended on 17 July 2008, by adding India and Russia to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 19 read as follows:“19. Gabon,Ivory Coast,Morocco,Thailand,TunisiaandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.”

Paragraph 19 was previously amended on 15 July 2005, by deleting Romania from the list of countries indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 19 read as follows:“19. Gabon,Ivory Coast,Morocco,Romania,Thailand,TunisiaandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.”

Paragraph 19 was previously amended on 28 January 2003, by adding Gabon, Ivory Coast, Morocco and Tunisia to the list of countries indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 19 read as follows:“19. Romania,ThailandandVietnamreserve the right to provide that an insurance enterprise of a Contracting State shall, except with respect to re-insurance, be deemed to have a permanent establishment in the other Contracting State if it collects premiums in the territory of that other state or insures risks situated therein through a person other than an agent of an independent status to whom paragraph 6 applies.”

Paragraph 19 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 19.1Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 20Amended on 15 July 2014, by adding Argentina to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 17 July 2008 and until 15 July 2014, paragraph 20 read as follows:“20. India,MoroccoandVietnamdo not agree with the words “The twelve month test applies to each individual site or project” found in paragraph 18 of the Commentary. They consider that a series of consecutive short term sites or projects operated by a contractor would give rise to the existence of a permanent establishment in the country concerned.”

Paragraph 20 was previously amended on 17 July 2008, by adding India to the list of countries indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 28 January 2003 and until 17 July 2008, paragraph 20 read as follows:“20. MoroccoandVietnamdo not agree with the words “The twelve month test applies to each individual site or project” found in paragraph 18 of the Commentary. Morocco and Vietnam consider that a series of consecutive short term sites or projects operated by a contractor would give rise to the existence of a permanent establishment in the country concerned.”

Paragraph 20 was previously amended on 28 January 2003, by adding Morocco as a country indicating the position, by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003. After 23 October 1997 and until 28 January 2003, paragraph 20 read as follows:“20. Vietnamdoes not agree with the words “The twelve month test applies to each individual site or project” found in paragraph 18 of the Commentary. Vietnam considers that a series of consecutive short term sites or projects operated by a contractor would give rise to the existence of a permanent establishment in the country concerned.”

Paragraph 20 was included when this section was added in 1997 by the report entitled “The 1997 Update to the Model Tax Convention”, adopted by the OECD Council on 23 October 1997.

Paragraph 21Amended on 15 July 2014, by adding Singapore to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 17 July 2008 and until 15 July 2014, paragraph 21 read as follows:“21. BulgariaandSerbiawould add to paragraph 33 of the Commentary on Article 5 their views that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.”

Paragraph 21 was previously amended on 17 July 2008, by replacing Serbia and Montenegro with Serbia as a country indicating the position, by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008. After 15 July 2005 and until 17 July 2008, paragraph 21 read as follows:“21. BulgariaandSerbia and Montenegrowould add to paragraph 33 of the Commentary on Article 5 their views that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.”

Paragraph 21 was previously amended on 15 July 2005, by adding Serbia and Montenegro as a country indicating the position, by the report entitled “The 2005 Update to the Model Tax Convention”, adopted by the OECD Council on 15 July 2005. After 28 January 2003 and until 15 July 2005, paragraph 21 read as follows:“21. Bulgariawould add to paragraph 33 of the Commentary on Article 5 its view that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.”

Paragraph 21 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 22Amended on 15 July 2014 by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 28 January 2003 and until 15 July 2014, paragraph 22 read as follows:“22. Bulgariadoes not adhere to the interpretation, given in paragraph 17 of the Commentary on Article 5, and is of the opinion that on-site planning and supervision of the erection of a building, where carried on by another person, are not covered by paragraph 3 of the Article, if not expressly provided for.”

Paragraph 22 was added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 23Added on 28 January 2003 by the report entitled “The 2002 Update to the Model Tax Convention”, adopted by the OECD Council on 28 January 2003.

Paragraph 23.1Deleted on 22 July 2010 by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 23.1 read as follows:“23.1 Chilewill not necessarily take into consideration paragraphs 42.1 to 42.10 until further study of e-commerce taxation has taken place.”

Paragraph 23.1 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 24Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 25Amended on 15 July 2014, by adding Azerbaijan to the list of countries indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 22 July 2010 and until 15 July 2014, paragraph 25 read as follows:“25. IndiaandMalaysiado not agree with the interpretation given in paragraph 5.3 (first part of the paragraph) and 5.4 (first part of the paragraph); they are of the view that these examples could also be regarded as constituting permanent establishments.”

Paragraph 25 was previously amended on 22 July 2010, by adding Malaysia as a country indicating the position, by the report entitled “The 2010 Update to the Model Tax Convention”, adopted by the OECD Council on 22 July 2010. After 17 July 2008 and until 22 July 2010, paragraph 25 read as follows:“25. Indiadoes not agree with the interpretation given in paragraph 5.3 (first part of the paragraph) and 5.4 (first part of the paragraph); it is of the view that these examples could also be regarded as constituting permanent establishments.”

Paragraph 25 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 25.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 25.2Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 26Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 26.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 27Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 28Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 29Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 30Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 31Amended on 15 July 2014, by adding Argentina as a country indicating the position, by the Report entitled “The 2014 Update to the Model Tax Convention”, adopted by the Council of the OECD on 15 July 2014. After 17 July 2008 and until 15 July 2014, paragraph 31 read as follows:“31. Indiadoes not agree with the interpretation given in paragraph 33; it is of the view that the mere fact that a person has attended or participated in negotiations in a State between an enterprise and a client, can in certain circumstances, be sufficient, by itself, to conclude that the person has exercised in that State an authority to conclude contracts in the name of the enterprise. India is also of the view that a person, who is authorised to negotiate the essential elements of the contract, and not necessarily all the elements and details of the contract, on behalf of a foreign resident, can be said to exercise the authority to conclude contracts.”

Paragraph 31 was added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 32Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 33Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 34Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 34.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 35Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 36Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 37Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 38Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 38.1Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.

Paragraph 39Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 40Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 41Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 42Added on 17 July 2008 by the report entitled “The 2008 Update to the Model Tax Convention”, adopted by the OECD Council on 17 July 2008.

Paragraph 43Added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.

Paragraph 44Added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.

Paragraph 45Added on 22 July 2010 by the report entitled the “2010 Update to the Model Tax Convention” adopted by the OECD Council on 22 July 2010.

Paragraph 46Added on 15 July 2014 by the report entitled “The 2014 Update to the Model Tax Convention” adopted by the Council on 15 July 2014.