Permanent establishment rules define when a foreign enterprise's fixed place or dependent agent creates local tax nexus. Permanent establishment is a fixed place of business through which an enterprise's business is wholly or partly carried on, including management offices, branches, factories, sales outlets and extraction sites under specified temporal conditions. Exclusions cover activities that are preparatory or auxiliary such as storage, display, delivery, purchasing, information collection, and stock maintenance for processing. Agency provisions deem an enterprise to have a permanent establishment where a dependent agent habitually concludes contracts or maintains a local stock combined with contributing activities, while independent agents acting in the ordinary course do not. Insurance enterprises collecting premiums or insuring local risks through non-independent agents are treated specially.
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 rules define when a foreign enterprise's fixed place or dependent agent creates local tax nexus.
Permanent establishment is a fixed place of business through which an enterprise's business is wholly or partly carried on, including management offices, branches, factories, sales outlets and extraction sites under specified temporal conditions. Exclusions cover activities that are preparatory or auxiliary such as storage, display, delivery, purchasing, information collection, and stock maintenance for processing. Agency provisions deem an enterprise to have a permanent establishment where a dependent agent habitually concludes contracts or maintains a local stock combined with contributing activities, while independent agents acting in the ordinary course do not. Insurance enterprises collecting premiums or insuring local risks through non-independent agents are treated specially.
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