The Organisation for Cooperation and Development (OECD) has made a number of recommendations under its Base Erosion and Profit Shifting (BEPS) plan to get countries to apply preventive actions to the transfer of tax receivables to other countries. The OECD stated: “tax jurisdictions need to take a closer look at the potential extension of the permanent establishment rules under BEPS Action 7: “Prevent the Artificial Avoidance of Permanent Establishment Status”, to increase tax revenues in their countries.
What is a permanent establishment?
As a general rule, businesses are taxed in their country of residence. However, conducting business activities in another country may lead to the creation of a so-called permanent establishment (PE) resulting in the need to account for part of the income for tax purposes in that other country.
PE Tracker – a PE risk assessment tool
PE Tracker is an additional feature of Tax Mapp, Baker Tilly International’s mobile tax app that provides access to current tax information and tax guides for 150 countries.
Given the uncertainties surrounding the establishment and verification of PE, Baker Tilly International has developed PE Tracker, a tool designed specifically to manage the risks associated with a permanent establishment (PE), drawing on its extensive international experience and detailed analysis of client needs.
PE Tracker provides a transparent, step-by-step verification of the risk of setting up a PE in order to ensure that the rules under which your business operates in other countries comply with the applicable regulations.
We encourage you to download the current version of Tax Mapp with the PE Tracker tool for Android and iOS: