A permanent establishment is a fixed place of business through which the business of an enterprise is wholly or partly carried on.
- There has to a ‘place of business ’ taking examples such as premises or, in certain circumstances machinery or equipment;
- The place of business must be “fixed” meaning it must be established at a distinct place with a certain degree of permanence;
- The business of the enterprise must be carried out through this fixed place of business. Meaning that it should be persons who, in one way or another, are dependent on the enterprise (personnel) that conducts the business of the enterprise.