With reference to Article 7. In respect of paragraphs 1 and 2 of Article 7, where an enterprise of a Contracting State sells goods or merchandise or carries on business in the other State through a permanent establishment situated therein, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of that part of the total receipts which is attributable to the actual activity of the permanent establishment for such sales or business. In the case of contracts for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, when the enterprise has a permanent establishment, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but shall be determined only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the State where the permanent establishment is situated. The profits related to that part of the contract which is carried out by the head office of the enterprise shall be taxable only in the State of which the enterprise is a resident.
With reference to Article 7. For the purposes of paragraph 3, it is understood that the term “expenses which are incurred for the purposes of the permanent establishment” means expenses which would be deductible if the permanent establishment were an independent enterprise of the Contracting State in which the permanent establishment is situated, and which are reasonably allocable to the permanent establishment.
With reference to Article 7. For the purpose of paragraph 3, the provisions of the second and third sentences therein shall apply in the case of Kuwait only. In the case of Singapore, the arm’s length principle will apply to payments between the permanent establishment and the head office or any of its other offices. If, in accordance with the provisions of the second sentence, no deduction is allowed by Kuwait in respect of royalties, fees or other similar payments, commission or interest paid by the permanent establishment to the head office or any of its other offices, Kuwait shall not subject the head office or its other offices to tax on such royalties, fees, payments, commission or interest; this being the treatment presently provided under the laws of Kuwait.
With reference to Article 7. In the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State in which it is situated. Profits derived from the supply of goods to that permanent establishment or profits related to the part of the contract which is carried out in the Contracting State in which the head office of the enterprise is situated shall be taxable only in that State.
With reference to Article 7. Notwithstanding any other provisions of this Agreement where a company which is a resident of a Contracting State has a permanent establishment in the other Contracting State, the profits of the permanent establishment may be subjected to an additional tax in that other Contracting State in accordance with its law, but the additional tax so charged shall not exceed 10 per cent of the amount of such profits after deducting therefrom income tax and other taxes on income imposed thereon in that other Contracting State.
With reference to Article 7. The provision of paragraph 1 shall not affect the provisions contained in any production sharing contract and contract of work (or any other similar contracts) relating to oil and gas sector concluded by the Government of a Contracting State, its instrumentality, its relevant state oil and gas company or any other entity thereof with a person who is a resident of the other Contracting State.
With reference to Article 7 a) With reference to paragraph 1 of Article 7, profits derived from the alienation of goods or merchandise of the same or similar kind as those sold by the permanent establishment may be regarded as attributable to that permanent establishment, if it is proved that the permanent establishment has been involved in any manner in that operation.
b) In the determination of the profits of a building site or construction, assembly or installation project there shall be attributed to that permanent establishment in the Contracting State in which the permanent establishment is situated only the profits resulting from the activities of the permanent establishment as such. If machinery or equipment is delivered from the head office or another permanent establishment of the enterprise or a third person in connection with those activities or independently therefrom there shall not be attributed to the profits of the building site or construction, assembly or installation project the value of such deliveries.
c) Income derived by a resident of a Contracting State from planning, project, construction or research activities, as well as income from technical services exercised in that State in connection with a permanent establishment situated in the other Contracting State, shall not be attributed to that permanent establishment.
With reference to Article 7. (a) In the case of contracts, in particular for the survey, supply, installation or construction of industrial, commercial or scientific equipment or premises, or of public works, where the enterprise has a permanent establishment in the other Contracting State, the profits of such permanent establishment shall not be determined on the basis of the total amount of the contract, but only on the basis of that part of the contract which is effectively carried out by the permanent establishment in the Contracting State in which it is situated. Profits derived from the supply of goods to that permanent establishment or profits related to the part of the contract which is carried out in the Contracting State in which the head office of the enterprise is situated shall be taxable only in that State.
(b) Payments received as a consideration for technical services, including studies or surveys of a scientific, geological or technical nature, or for engineering contracts including blue prints related thereto, or for consultancy or supervisory services shall be deemed to be payments to which the provisions of Article 7 or Article 14 of the Agreement apply.
With reference to Article 7. In respect of paragraphs 1 and 2 of Article 7, where an enterprise of a Contracting State, having a permanent establishment in the other Contracting State, sells goods or merchandise or carries on other business activities in that other State, the profits of that permanent establishment shall not be determined on the basis of the total amount received by the enterprise, but shall be determined only on the basis of that part of the total receipts which is attributable to the actual activity of the permanent establishment for such sales or such other business activities. It is understood also that the profits of the enterprise shall be considered to be attributable to the permanent establishment if the enterprise sells goods or merchandise or carries on business of the same or similar kind as the sales or business undertaken by the permanent establishment provided that the permanent establishment has taken a determinant part in these activities.
With reference to Article 7. (a) In the Contracting State in which the permanent establishment is situated, no profits shall be attributed to a building site or construction or installation project except those which are the result of such activities themselves. Profits derived from the supply of goods connected with, or independent of, such activities and effected by the principal permanent establishment or any other permanent establishment of the enterprise or by a third party shall not be attributed to the building site or construction or installation project. Income derived from design, planning, engineering or research or from technical services which a resident of a Contracting State performs in that Contracting State shall not be attributed to that permanent establishment. It is understood that payments made in consideration for any services of a managerial, technical or consulting nature shall be regarded as business profits in the meaning of Article 7. In respect of paragraph 3 of Article 7 no such deduction shall be allowed in respect of amounts paid or 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: (i) royalties, fees or other similar payments in return for the use of patents or other rights; commission, for specific services performed or for management; and interest on moneys lent to the permanent establishment, except in
(c) (d) -
