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4.1. Domestic PE of a Foreign Entity

A permanent establishment (PE) is a place through which the business of a person is carried out, and includes:

  • An agent (excluding an independent agent acting in the ordinary course of business) carrying on business or acting on behalf of the other person if it (effective 1 July 2021):
    • habitually exercises authority to conclude contracts or issues invoice on behalf of such person, unless their activities are limited to the purchase of goods or merchandise;
    • has no authority to conclude contracts, but habitually maintains stock of goods or merchandise from which they regularly deliver goods or merchandise on behalf of such person; or
    • habitually secures orders, wholly or almost wholly for such person or for the enterprise and other enterprises controlling, controlled by, or subject to the same common control, as that of such person;
  • A place where the person has used or installed or is using or installing substantial equipment or machinery; and
  • A place where the person is carrying out activities of construction, assembly, or installation project and related supervisory activities for more than 6 months.