Page 69 - 1983

12 ΕΠΙΣΗΜΗ ΕΦΗΜΕΡΙΔΑ ΤΗΣ 14ης ΙΑΝΟΥΑΡΙΟΥ 1983
(e) the terms "enterprise οί a Contracting
State" and "enterprise οί the other Con–
tracting State" mean, respectively, an enter–
prise carried οη by a resident οί a Contract–
ing State and an enterprise carried οη by
a resident οί the other Contracting State;
(ί) the term "competent authority" means–
(ί) ίη regard to the Republic οί Cyprus the
Minister οί Finance, or 'his authorized
representative;
(ίί) ίη regard Ιο the Geπnan Democratic
Republic the Ministry of Finance;
(g) the term "international traffic" means any
transport by ship or aircraft operated by
an enterpl"ise wmch has its place οί effective
management ίη a Contracting State, except
when the ship or aircraft is operated solcly
between places ίη the other Contracting
State;
(h) the term "gains from the operation of a
ship or aircraft" also includes income
derived from the transportation of goods
and the carriage οί persons.
2. As regards the application of the Conventίon
by a Contracting State, any term ηοΙ defined
therein shall, unless the context otherwise re–
quires, have the meaning which ίι has under the
law οί th'at State concerning t,he taxes to which
the Convention app1ies.
Article 4
Resident
1. For the purposes of this Convention, the
term "resident οί a Contra'cting State" means any
person who, under the laws of that State, is liable
Ιο tax therein by reason οί his domioile, ha:bitual
abode or place οί management.
2. Where by reason οί the provisions οί para–
graph 1 an individual is a resident οί bot,h
Contracting States, then his status shall be de–
termined as follows:
(a) he shall be deemed Ιο be a resident οί the
Contracting State ίη which he has a per~
manent home avai1able tohim. Π he has
a permanent home available to him ίη both
Contracting States, he shall be deemed to
be a resident οί the Contracting State with
which his person3!l and economic relations
are closer.
(b) ίί the Contracting State with which ms ρer­
sonal and economic relat'ions are closer
cannot be determined. or if he has not a
permanent home avai1able to him ίη either
Contracting State, he shall be deemed to
be a resident οί the Contracting State ίη
which he has his predominant abode.
(c)ίί he resides in both οί the Contracting
States or ίη neither οί them, he shall be
deemed to be a resident oιf the Contracting
State οί which he is a national.
(d) ίί he is a national οί both Contracting
States, the competent authorities οί the
Contracting States shal1 settle the question
by mutual agreement.
3. Where by reason of the provisions of para–
graph 1 a person other than an individual is a
resident of both Contracting States, then it shall
be deemed to be a resident οί the Contracting
State ίη which its place οί effective management
is situated.
Article 5
Permanent Establishment
1. For the purposes οί this Convention, the
term "permanent establishment" means a fίxed
place of business through which the business of
an enterprise is wholly or partly carήed on.
2. The term "permanent establishment" ίη-
cludes especially:
(a) a place οί management
(b) a branch
(c) an office
(d)a factory
(e) a workshop
(f) a mine, an οίl or gas wel1. a quarry or any
other place οί extraction of natural re–
sources and
(g) an agriculturaI enterpIise.
3. Tlle term "perm'anent establishment" shall
be deemed not to inclu'de:
(a) a bui1ding s'ite or construction or instaIla–
ιίοη or assembly project peιformed duήng
a period οί time n'Ot exceeding twelve
months, inclU'ding the performance οί
control over the construction οί an object
or οί any assembly works. Where such
works are performed ίη accordance with the
'programmes οί inter-govemmental coope–
ration, the comρetent authorit'ies οί the
Contracting States may by mutual agree–
ment extend the twelve-month period ίη
cases where they deem it necessary;
(b) the use of facilities solely for the purpose
of storage, display or delivery οί goods or
merch'andise belonging to the enterprise;
(c) the maintenance of a stock of goods or
merchandise belongIng to the enterprise
solely for the purρose of storage, display
or de1ivery;
(d) the maintenance οί a stock οί goods or
meoch'andise bel'Onging 10 the enterprise
solely for the purpose οί processing by
another enterprise;
(e) the maintenance of a fixed place of bu–
siness solely for the purpose οί purchasing
goods or merohandise or οί collecting ίη­
format'ion, {or the enterprise;
(ί) the maintenance οί a fixed place οί business
solely for the pu'rpose οί advertlsing, pro–
vi,d'Ing information, carrying οη scientific
research or other s'imilar activities for the
enterprise;
(g) the maintenance οί 'a fixed place οί business
solely for the purpose οί carrying οη any
combination οί actίνίtίes mentioned ίη sub–
paragraphs (b) to (f).
4. Notwithstand'ing the provisions οί para–
graphs 1 and 2, where a person - other than
an agent of an independent status to whom para–
graph 5 applies - is acting οη beh'a1f οί an enter–
prise and has, and habitual1y exercises, ίη a
ContractIng State an authority to conclude
contracts ίπ the name of the enterprise, that enter–
prise s'halI be deemed to have a permanent
estab1ishment ίη that State in respect of any acti–
vities which that person undertakes for the enter–
prise, unless the activit'ies οί such person are
limited to those mentioned ίη paragraph 3 which,
if exercised through a fixed place of business,
would ηοΙ make this fίxOO place of bus'iness a
permanent estabJishment under the provisions of
that paragrapl1.
5. Αη enterprise shall ηαΙ be deemed to have
a permanent establishment ίη a Contracting State
merely because it carries οη business ίη that State
through a broker, general commission agent or
any other agent of an independent status, provided
that such persons are acting ίη the ordinary
course of their business.
6. The fact that a company whichis a resident
οί a Contracting State controls or is control1ed
by a company which is a resident of the other
Contracting State, or whioh carries οη business
ίη that other State (whether through a permanent
establishment or ο therwise), shal1 not οί itself
constitute either company a permanent establίsh­
ment οί the other.