Permanent establishment rules limit taxation to profits attributable to the PE, using separate-enterprise principles and consistent attribution. Profits are taxable only in the resident State unless business is carried on in the other State through a permanent establishment, in which case only profits attributable directly or indirectly to that permanent establishment may be taxed there. Profits of a permanent establishment are determined as if it were a distinct and separate enterprise, with deductible expenses incurred for its business allowed under the tax law of the State where it is situated. Customary apportionment methods may be used if consistent with this Article, no profits arise from mere purchases, attribution methods should be consistent year to year, and other Articles govern separately dealt-with income.
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 limit taxation to profits attributable to the PE, using separate-enterprise principles and consistent attribution.
Profits are taxable only in the resident State unless business is carried on in the other State through a permanent establishment, in which case only profits attributable directly or indirectly to that permanent establishment may be taxed there. Profits of a permanent establishment are determined as if it were a distinct and separate enterprise, with deductible expenses incurred for its business allowed under the tax law of the State where it is situated. Customary apportionment methods may be used if consistent with this Article, no profits arise from mere purchases, attribution methods should be consistent year to year, and other Articles govern separately dealt-with income.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
TaxTMI 
