Bulgaria – France

Permanent Establishment

Art. 4

1. For the purposes of this Convention, the term "permanent establishment" means a fixed place of business through which the business of an enterprise of a Contracting State is wholly or partly carried on in the other Contracting State.

2. The term "permanent establishment" includes especially:

1. a place of management;
2. a branch;
3. an office;
4. a factory;
5. a workshop and namely a repair workshop;
6. a mine, an oil or gas well, a quarry or any other place of extraction of natural resources; and
7. a construction or installation project but solely if it lasts more than twelve months.

3. Notwithstanding the provisions of the preceding paragraphs of this Art., the term "permanent establishment" shall be deemed not to include:

1. the use of facilities solely for the purpose of storage, display or delivery of goods or merchandise belonging to the enterprise;
2. the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of storage, display or delivery;
3. the merchandise are exposed by the enterprise on a fair or exhibition and are sold after the conclusion of such fair or exhibition;
4. the maintenance of a stock of goods or merchandise belonging to the enterprise solely for the purpose of processing by another enterprise;
5. the maintenance of a fixed place of business solely  for the    purpose of purchasing goods or merchandise or of collecting information for the enterprise;
6. the maintenance of a fixed place of business solely  for the purpose of carrying on, for the enterprise, any other activity of a preparatory or auxiliary character;
7. the maintenance of a fixed place of business solely for any combination of activities mentioned in sub-paragraphs (a) to (f), provided that the overall activity of the fixed place of business resulting from this combination is of a preparatory or auxiliary character.

5. Notwithstanding the provisions of paragraph 1 and 2, where a person - other than an agent of an independent status to whom the provisions of paragraph 5 apply - is acting on behalf of an enterprise and has, and habitually exercises, in a Contracting State an authority to conclude contracts in the name of the enterprise, that enterprise shall be deemed to have a permanent establishment in that Contracting State in respect of any activities which that person undertakes for the enterprise, unless the activities of such a person are limited to those mentioned in paragraph 3 which, if exercised through a fixed place of business, would not make that fixed place of business a permanent establishment under the provisions of that paragraph.

6. An enterprise shall not be deemed to have a permanent establishment in a Contracting State merely because it carries on business in that Contracting State through a broker, a general commission agent or any other agent of an independent status, provided that such persons are acting in the ordinary course of their business.

7. The fact that a company which is a resident of a Contracting State participates in a company, which is a resident of the other State, or which carries on business in that other Contracting State (whether through a permanent establishment or otherwise), shall not of itself constitute either company or a permanent establishment of the other.