Permanent Establishment is described as a businesses that has a stable and ongoing presence of persistent revenue creation in a foreign country. If the company maintains any type of locally created revenue the host country can sometimes tax that revenue at a local rate. There is different standardization that countries follow to implement PE status and tax companies as such. Although, many countries model their economic policies, treaties, and tax laws off of guidelines from the Organization For Economic Cooperation and Development (OECD). Learn about Permanent Establishment in Mexico.