Business profits taxation limited to residence unless a permanent establishment creates attributable taxable profits. Business profits are taxable only in the State of residence unless an enterprise carries on business in the other State through a permanent establishment, in which case only profits attributable to that establishment may be taxed there. Attribution must reflect the profits the permanent establishment would earn as a distinct and separate enterprise under similar conditions; allowable deductions include expenses incurred for the permanent establishment, subject to local tax law limits, and purchases of goods alone do not generate attributable profits.
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.
Business profits taxation limited to residence unless a permanent establishment creates attributable taxable profits.
Business profits are taxable only in the State of residence unless an enterprise carries on business in the other State through a permanent establishment, in which case only profits attributable to that establishment may be taxed there. Attribution must reflect the profits the permanent establishment would earn as a distinct and separate enterprise under similar conditions; allowable deductions include expenses incurred for the permanent establishment, subject to local tax law limits, and purchases of goods alone do not generate attributable profits.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
