If approved, the bill would eliminate the term “essential activity” from the permanent establishment definition. With this modification, a lower threshold would apply for triggering a permanent establishment.
Costa Rica’s Congress will discuss a bill that would amend the definition of permanent establishment (PE) in Article 2 of the Income Tax Law. To become law, Congress needs to approve the bill in two debates.
Current law defines a PE as any fixed business site or place in which the essential …