Regulations Governing Application of Agreements for the Avoidance of Double Tax<br> Article 7
The permanent establishment (hereinafter referred to as the PE) mentioned in these Regulations refers to a fixed place of business through which the business of an enterprise is wholly or partly carried on.
An enterprise of the other Contracting State shall be deemed to have a PE in the ROC if the enterprise has the following place of business in the territory of the ROC:
1. A fixed place, including the housing, facilities or equipment fixed to the soil on which it stands or which remains on a particular site. The enterprise shall be deemed to have a PE if the business is carried on by the use of automatic equipment at a fixed place which is operated and maintained by an enterprise of the other Contracting State; or
2. A fixed place through which the business has been carried on continuously for a period more than six months; or not up to six months but the business has been regularly carried on; or
3. A fixed place which is at the disposal of or used by the enterprise of the other Contracting State.
An enterprise of the other Contracting State shall be deemed not to have a PE if the maintenance of a fixed place of business is solely for the carrying on of an activity of a preparatory or auxiliary character.