Permanent Establishment (PE) Advisory

Ascertaining International Tax status

In today’s business world, tax for business has become more complex, having local laws and international laws to manage parallelly.

The legislations in the GCC countries have the concept of ‘Permanent Establishment’ (PE) under the Corporate Income tax wherever applicable. In UAE, as corporate taxes are currently enforced on foreign oil companies engaged in the exploration and production of oil and also branches of foreign banks, PE has a significant impact on such businesses.

PEs can be of various kinds including, but not limited to, Fixed Place PE, Supervisory PE, Installation PE, Service PE, Agency PE and the latest concept of Virtual PE under the proposed OECD Digital tax regime.

Furthermore, from a VAT perspective, PE can also have implications. As per the UAE Decree-Law, PE is the place where a business is legally established in a country according to the decision of its establishment, or in which significant management decisions are taken and central management functions are conducted. Permanent Establishment has a major impact on business income and taxation framework, hence businesses must take the PE concept and its aspects seriously.

A strong perception and understanding are required to deal with the applicability and processing of Permanent Establishment. Our proficient experts with multinational experience will assist you as per your business model and counsel you on the analysis and approach.

MBG Corporate Services has a meticulous eye for detail about every aspect of your value chain to mitigate any unforeseen risks caused by PE legislations and its compliances. Combining strong communication skills and understanding, we clarify the concepts involved and applicability of those concepts with regard to your business interests.

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