Permanent Establishment
/ˈpɜːrmənənt ˌɛstəˈblɪʃmənt/
Definitions
- (n.) A fixed place of business through which a company conducts its business, used primarily in international tax law to determine taxable presence.
The corporation was deemed to have a permanent establishment in Germany and thus owed taxes there.
Forms
- permanent establishment
Related terms
See also
Commentary
Permanent establishment is key in international tax to establish jurisdiction for taxing business profits; precise definitions often vary in treaties and domestic laws.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.