XYZ Corporation, is a multinational company incorporated and headquartered in Spain. It operates various business activities globally, including a branch office in Australia.

XYZ Corporation established the branch office to conduct business operations within Australia. The branch office engages in sales, marketing, and distribution activities of XYZ Corporation's products $($manufactured in various locations in Asia$)$ to Australian customers. The branch is staffed with local employees who manage day$-$to$-$day operations, maintain business relationships with Australian clients, and oversee product distribution and customer service.

XYZ Corporation's board of directors is composed of Spanish residents who. Meet regularly in Madrid. The board is responsible for making strategic decisions, approving corporate policies, attending to financial matters, and major business decisions.

XYZ Corporation's management structure entails a hierarchical system where the Australian branch office reports to a regional manager located in Europe, who, in turn, reports to the company's senior management in Spain. The Australian branch office has limited decision$-$making authority and does not possess the power to enter significant contracts or make significant financial decisions independently. All major decisions must be approved by the board of directors in Spain before they can be actioned by the branch office.

The Australian branch office generates significant revenue for XYZ Corporation through sales and distribution activities within Australia $(35\%$ of global revenue$).$ It operates as a profit centre, generating income by selling XYZ Corporation's products to Australian customers, receiving payments in Australian dollars and remitting them $($less operating expenses$)$ to Spain. The branch office in Australia has been operating for five years, consistently generating revenue during this period.

Is the Australian branch office Permanent Establishment?