S.L. 123.100 Art. 7in a through a status, business. almost wholly on behalf of status within 8. The or is controlled which carries establishment permanent 1. property Contracting 2. The the law of the term shall in and equipment general law rights to to work, or to ships, boats 3. The use, letting or 4. The immovable

An enterprise shall not be deemed to have a permanent establishment Contracting State merely because it carries on business in that State broker, general commission agent or any other agent of an independent provided that such persons are acting in the ordinary course of their However, when the activities of such an agent are devoted wholly or that enterprise, he will not be considered an agent of an independent the meaning of this paragraph. fact that a company which is a resident of a Contracting State controls by a company which is a resident of the other Contracting State, or on business in that other State (whether through a permanent or otherwise), shall not of itself constitute either company a establishment of the other. ARTICLE 6 INCOME FROM IMMOVABLE PROPERTY

Income derived by a resident of a Contracting State from immovable (including income from agriculture or forestry) situated in the other State may be taxed in that other State. term "immovable property" shall have the meaning which it has under Contracting State in which the property in question is situated. The any case include property accessory to immovable property, livestock used in agriculture and forestry, rights to which the provisions of respecting landed property apply, usufruct of immovable property and variable or fixed payments as consideration for the working of, or the right explore for, mineral deposits, sources and other natural resources; and aircraft shall not be regarded as immovable property. provisions of paragraph 1 shall apply to income derived from the direct use in any other form of immovable property. provisions of paragraphs 1 and 3 shall also apply to the income from property of an enterprise and to income from immovable property used performance of independent personal services. foregoing provisions shall also apply to income derived from movable income derived from services connected with the use of or the right to properties which, under the domestic law of the Contracting State in properties are situated, shall be deemed to be income from immovable

ARTICLE 7 BUSINESS PROFITS

profits of an enterprise of a Contracting State shall be taxable only in unless the enterprise carries on business in the other Contracting State permanent establishment situated therein. If the enterprise carries on aforesaid, the profits of the enterprise may be taxed in the other State but of them as is attributable to that permanent establishment.

Subject to the provisions of paragraph 3, where an enterprise of a Sate carries on business in the other Contracting State through a establishment situated therein, there shall in each Contracting State be that permanent establishment the profits which it might be expected to were a distinct and separate enterprise engaged in the same or similar under the same or similar conditions and dealing wholly independently enterprise of which it is a permanent establishment. determining the profits of a permanent establishment, there shall be allowed as deductions expenses which are incurred for the purposes of the permanent establishment, including executive and general administrative expenses so incurred, whether in the State in which the permanent establishment is situated or elsewhere. b) In the case of Morocco, no such deduction shall be allowed payments made by the permanent establishment to the head enterprise or to any of its branches, such as honoraria or As regards interests on payments made in advance or amounts the permanent establishment, a deduction shall be allowed, amount shall not exceed that which results from the computation interest in accordance with the provisions of the domestic limitation concerning interests shall not apply establishments.