Japan’s Tax Authority confirms that a representative and registration in Japan as required under Companies Act does not create a PE

Japan’s National Tax Agency has published a tax ruling addressing whether the appointment of a representative and the act of registration would constitute a permanent establishment (PE).

Under the specific facts of this ruling, as summarized in the Alert, a PE was not created by these actions.

This ruling is the first to publicly provide guidance concerning the PE implications of a foreign corporation’s obligations under the Companies Act.