Have You Accidentally Triggered Permanent Establishment? How to Know…
If your business is expanding internationally, you are likely familiar with the phrase permanent establishment (PE). Any business activity that generates revenue in a country can be deemed by local authorities as having created a PE, giving that country the power to assess income or a value-added tax.
The problem with PE is that it often exists in a gray area, open to interpretation by fiscal authorities in different countries. What’s considered to be revenue-generating in one place may be seen as purely marketing (non-revenue generating) elsewhere.
Remember, in most countries, in order to recognize a PE, it needs to be formally registered under some corporate identity, typically a branch, representative office or a subsidiary entity.
Learn more about permanent establishment risk with this 60 minute archived webinar.
For more information about permanent establishment risk, and entity types, visit High Street Partner’s website.