YD 4B Meaning of permanent establishment
What this section does

(1)

This section gives the meaning of permanent establishment for a person or other enterprise (the enterprise) that makes in New Zealand a supply of goods or services.

Double tax agreement with applicable definition

(2)

Permanent establishment, for an enterprise that is resident in a country or territory with which New Zealand has a double tax agreement that includes a definition of permanent establishment, has the meaning given by—

(a)

the double tax agreement:

(b)

section GB 54 (Arrangements involving establishments), if the enterprise meets the requirements of the section.

No double tax agreement with applicable definition

(3)

Permanent establishment, for an enterprise that is resident in New Zealand or in a country or territory with which New Zealand does not have a double tax agreement that includes a definition of permanent establishment, has the meaning given by schedule 23 (Meaning of permanent establishment).

Interpretation of schedule 23

(4)

Schedule 23 is treated as applying consistently with the guidance relevant to the schedule that is provided by the Commentary on Article 5 of the Model Tax Convention on Income and on Capital, in Model Tax Convention on Income and on Capital published by the Organisation for Economic Co-operation and Development, as amended at the beginning of the income year in which the enterprise makes the supply.

Defined in this Act: business, double tax agreement, goods, New Zealand, non-resident, permanent establishment, resident in New Zealand, services

Section YD 4B: inserted, on 1 July 2018, by section 51(1) (and see section 51(2) for application) of the Taxation (Neutralising Base Erosion and Profit Shifting) Act 2018 (2018 No 16).