Permanent establishment: fixed place or agency triggers tax nexus, with MLI curbing artificial exemptions for linked activities. Permanent establishment is a fixed place of business through which an enterprise's business is wholly or partly carried on, exemplified by management offices, branches, factories, sales outlets and places of natural resource extraction (subject to temporal thresholds). Specific activity exclusions remove PE status for purely preparatory or auxiliary functions, but the MLI prevents artificial avoidance where the same or closely related enterprises carry on complementary activities at the same or another place in the State that together are not preparatory or auxiliary. Agency rules and an insurance-specific rule also create PE in defined circumstances.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Permanent establishment: fixed place or agency triggers tax nexus, with MLI curbing artificial exemptions for linked activities.
Permanent establishment is a fixed place of business through which an enterprise's business is wholly or partly carried on, exemplified by management offices, branches, factories, sales outlets and places of natural resource extraction (subject to temporal thresholds). Specific activity exclusions remove PE status for purely preparatory or auxiliary functions, but the MLI prevents artificial avoidance where the same or closely related enterprises carry on complementary activities at the same or another place in the State that together are not preparatory or auxiliary. Agency rules and an insurance-specific rule also create PE in defined circumstances.
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