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Understanding permanent establishment (PE) risks is crucial for global multinational corporations (MNCs) expanding across borders. A permanent establishment refers to a fixed place of businessu2014like a branch, office, or factoryu2014through which a companyu2019s operations are wholly or partly carried out in another country. Failing to manage PE exposure can lead to unexpected tax liabilities, double taxation, and regulatory penalties.<br>For global MNCs, key PE risk factors include the presence of dependent agents, remote employees, warehouses, and service delivery in foreign jurisdictions.
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