https://www.taxtmi.com/circulars?id=55644 The Place of Effective Management (POEM) defines corporate residence by locating where key management and commercial decisions are substantially made. Companies engaged in active business outside India satisfy a multi-limb test on passive income, asset location, employee distribution and payroll; if satisfied and majority board meetings occur abroad, POEM is presumed outside India unless management powers are exercised from India. Where the active-business test fails, POEM is determined by identifying who actually makes key decisions and where those decisions are made, with emphasis on substance over form and consideration of head office, delegation, technology, and shareholder influence. en-us Tue, 24 Jan 2017 00:00:00 +0530 Mon, 16 Mar 2026 15:37:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/circulars?id=55644 The Place of Effective Management (POEM) defines corporate residence by locating where key management and commercial decisions are substantially made. Companies engaged in active business outside India satisfy a multi-limb test on passive income, asset location, employee distribution and payroll; if satisfied and majority board meetings occur abroad, POEM is presumed outside India unless management powers are exercised from India. Where the active-business test fails, POEM is determined by identifying who actually makes key decisions and where those decisions are made, with emphasis on substance over form and consideration of head office, delegation, technology, and shareholder influence. Circulars Income Tax Tue, 24 Jan 2017 00:00:00 +0530 https://www.taxtmi.com/circulars?id=55644