Global business expansion is on the rise, with an estimated $7 trillion to $9 trillion in global trade being attributed to multinationals.
That's a lot of taxable revenue up for grabs. Foreign governments are eager to apply their corporate tax laws to companies operating within their borders.
This is where the concept of permanent establishment risk, or PE risk, comes into play. This is also why it's so important for companies operating in foreign countries to be aware of and understand the risk.
If not, companies doing business abroad may one day wake up to a big surprise. A potentially bigger tax bill if they don’t take permanent establishment risk seriously... |