Article 7

Business Profits

1. The profits of an enterprise of a Contracting State shall be taxable only in that State
unless the enterprise carries on business in the other Contracting State through a permanent
establishment situated therein. If the enterprise carries on business as aforesaid, the profits of
the enterprise may be taxed in the other State but only so much of them as is attributable to
that permanent establishment. However, profits derived from the sale of goods or merchandise
of the same or similar kind as those sold, or from other business activities of the same or similar
kind as those effected, through that permanent establishment may be considered attributable to
that permanent establishment if it is established that such sales or activities were structured in
a manner intended to avoid taxation in the State where the permanent establishment is
situated.

2. Subject to the provisions of paragraph 3, where an enterprise of a Contracting State carries
on business in the other Contracting State through a permanent establishment situated therein,
there shall in each Contracting State be attributed to that permanent establishment the profits
which it might be expected to make if it were a distinct and separate enterprise engaged in the
same or similar activities under the same or similar conditions and dealing wholly independently
with the enterprise of which it is a permanent establishment

http://www.sars.gov.za/AllDocs/LegalDoclib/Agreements/LAPD-IntA-DTA-2012-12%20-%20DTA%20Nigeria%20GG%2031241.pdf

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