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 call:
- Berlin +49 30 24724252
+ 852 2891 0030
- St. Petersburg +7 931 3372795
- London +44 78 12524249
- Paris +33 14 7430883
- Nicosia +357 22377311
- New York +1 347 4509922
- Hong Kong +852 28910030
- Riga +371 28455799
- Kiev +380 96 1892877
- Luxembourg +49 171 4139820
- Shanghai +852 61483894