+1 347 450-99-22

Other matters: risks of permanent establishment formation

Legal entities can interact in many ways. According to Russian law they can create different kind of unions, partnerships in order to achieve certain business aims. It is clear that business partners who are Russian residents must pay taxes of joint income and assets, but the situation with non residents is not so evident.

The activity of a legal entity may or may not lead to permanent establishment formation. Depending on this the entity pays taxes to Russian Federation or doesn’t pay at all. There is no common rule which shows any features of permanent establishment formation. To figure out all the possible risks of permanent establishment formation on the territory of Russian Federation it is necessary to review in details all the conditions of a certain agreement on joint activities.

West Union specialists have experience and methods to estimate and decrease all the possible risks of tax consequences of permanent legal establishment and provide assistance in the preparation of joint activities agreement.


For detailed information please dial: +7 (495) 987-18-55


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Contacts of West Union companies:
Berlin +49 30 24724252
Moscow +7 495 9871855
St. Petersburg +7 812 9512853
London +44 78 12524249
Paris +33 14 7430883
Nicosia +357 22757521
New York +1 347 4509922
Hong Kong +852 28910030
Riga +371 28455799
Kyev +380 96 1892877
Luxembourg +352 691592 688
Shanghai +86 21 52666908