Article 2 defines a 'Permanent Establishment' (PE) as a fixed headquarters from which a non-resident entity partially or wholly conducts its business in Kuwait. The definition explicitly includes management headquarters, branches, offices, factories, and natural resource extraction sites. A PE is also constituted by construction or installation projects, or the provision of services, that continue for more than six months within any twelve-month period. An agent may also create a PE under conditions specified in executive regulations. A catch-all provision includes any business place generating income exempt from tax in the non-resident's home jurisdiction.