Permanent Establishment Taxation - Everything You Need to Know (Meaning and Risk)
Channel: Esquire Group
Date: 2021-04-28

Permanent Establishment Taxation - Everything You Need to Know (Meaning and Risk)

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In today's video, Jimmy Sexton dives into the topic of permanent establishments – including what they are, why they matter, and strategies to optimize your business.

This subject is critical to businesses with operations in multiple countries – these rules apply to corporations, partnerships, LLCs, etc.

A permanent establishment exists when an enterprise from one country has a fixed place of business or a dependent agent in another country. Having a manager or a director of a company in another country, for example, could be enough to create a “fixed place of business." Dependent agents include a wider group of people than you might imagine – they do not need to be an employee. The definitions of these terms vary country to country.

Permanent establishments are dangerous because they are easily formed and might come with significant income reporting and tax obligations. Permanent establishments are generally subject to tax in the country where they exist. Often, permanent establishments create undesirable tax consequences. If a tax treaty exists between the relevant jurisdictions, you might receive some benefit or protection from taxation.

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Website: https://esquiregroup.com

About Jimmy Sexton:

Hi! I am Jimmy Sexton, LL.M. - Founder & CEO of Esquire Group. I founded Esquire Group with the objective of helping and inspiring wealthy families, investors, entrepreneurs, and high-level executives obtain and gain control over and protect their wealth, via strategic wealth planning.

Connect with me on LinkedIn: https://www.linkedin.com/in/jimmysextonllm/

Disclaimer:

This video is prepared for educational purposes only. This video is not legal, tax or any other type of advice. Each individuals’ circumstances are different, you should seek legal and/or tax advice to address your specific situation and any questions you may have.