Permanent establishment
The term permanent establishment is defined in the Nordic tax treaty. Permanent establishment means a fixed place of business through which the business of an enterprise is wholly or partly carried on. The term permanent establishment includes especially:
- a place of management
- a branch
- an office
- a factory
- a workshop, and
- a mine, an oil or gas well, a quarry or any other place of extraction of natural resources.
A building site or a construction, installation or assembly project constitutes a permanent establishment only if the project last more than 12 months and is carried out in the same place.
When a person is acting on behalf of your enterprise in another Nordic country and he has, and habitually exercises, an authority to conclude contracts in the name of your enterprise, the enterprise shall be deemed to have a permanent establishment.