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4.1. Domestic PE of a Foreign Entity

Permanent Establishment ('PE') is not defined under the Income Tax Act of Kiribati.

However, activities of a branch of a non-resident company are defined to include any place through which the operations of a company are carried on, and such place of business includes:

  • A place where a person is carrying on business through an agent, other than an independent agent, not acting in the ordinary course of business; or
  • A place where a person has, or is using, or is installing substantial equipment or substantial machinery; or
  • A place where a person is engaged in a construction project.

The domestic law of Kiribati does not specifically define a service PE. However, a number of tax treaties entered into by Kiribati (e.g. with Taiwan) specifically provide for a service PE clause, which requires the physical presence of employee or personnel of the non-resident company for a prescribed period (ranging between 6 and 12 months) in Kiribati. Certain tax treaties with countries like Australia and the United Kingdom do not have a service PE clause.