PE (Permanent Establishment)

Timor-Leste

 https://taxsummaries.pwc.com/timor-leste/corporate/corporate-residence

The definition of a corporate resident (resident legal person) covers a wide range of entities, such as companies, partnerships, trusts, governmental institutions, and unincorporated associations incorporated, formed, organised, or established in Timor-Leste.

Permanent establishment (PE)

A PE is defined as a fixed place of business through which the business of a person is wholly or partly carried on, including:

  • A place of management.
  • A branch.
  • A representative office.
  • An office.
  • A factory.
  • A workshop.
  • A mine, an oil or gas well, a quarry, or any other place of extraction of natural resources, including any place of drilling for mineral exploration.
  • A fishery, place where animal husbandry is conducted, farm, plantation, or forest.
  • A construction, installation, or assembly project.
  • The furnishing of a service through employees or other personnel if conducted for more than 60 days in any 12-month period.
  • A natural or legal person acting as a dependent agent.
  • An agent or employee of a non-resident insurance company if the agent or employee collects premiums or insures risks in Timor-Leste.

Papua New Guinea

https://taxsummaries.pwc.com/papua-new-guinea/corporate/corporate-residence

Permanent establishment (PE)

The concept of 'permanent establishment' has limited significance in the domestic taxation law of Papua New Guinea and is defined to mean a place at or through which a person carries on any business. Under domestic taxation law, Papua New Guinea will seek to tax the PNG-sourced income of a non-resident irrespective of whether or not that income is derived at or through a PE in Papua New Guinea.

Where PNG has entered into a DTT, the concept of PE becomes more important as it will then be one of the factors determining Papua New Guinea’s taxing rights over income sourced in Papua New Guinea, particularly with respect to the business profits of a non-resident company. In general terms, Papua New Guinea’s DTTs:

  • define a PE to be a fixed place at or through which the business of an enterprise is wholly or partly carried on, and
  • deem a PE to exist in various circumstances, including those relating to the presence of substantial equipment in the contracting state and the time spent by personnel of an enterprise furnishing services in a contracting state.

Bolivia

Permanent establishment (PE)

Note that Bolivian commercial laws allow foreign corporations to carry out isolated commercial acts in Bolivia without the obligation to constitute a permanent representation in Bolivia; however, such corporations cannot carry out habitual commercial acts without fulfilling the requirements established to constitute a company in Bolivia (e.g. through either a subsidiary or a branch). Unfortunately, Bolivian legislation does not include provisions to regulate situations that could trigger PE nor does it define what should be understood by 'carrying out habitual commercial acts'.

https://taxsummaries.pwc.com/bolivia/corporate/corporate-residence

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