A permanent establishment (PE) is a fixed place of business which generally gives rise to corporate, income or value-added tax liability in a particular jurisdiction. Sometimes even a person with contractual power is enough to create a tax liability. The term is defined in many income tax treaties and in most European Union Value Added Tax systems. The tax systems in some civil-law countries impose income taxes and value-added taxes only where an enterprise maintains a PE in the country concerned. Definitions of PEs under tax law or tax treaties may contain specific inclusions or exclusions.
We offer an initial Consultation free of charge via Skype.