Permanent Establishment

Business case

Please contact our expert consulting team to discuss your individual business strategy regarding the foundation of a Permanent Establishment of your German company in India. Counselhouse has the experience and the capability to leverage a strong network of partners from consulting companies across Europe and India to support you through all phases of your expanding business to India.

Business challenge

We were asked to prepare a status report on whether there is a risk that the Chinese company would be classified as a permanent establishment in Germany. A permanent establishment would raise the following concerns:

  • Would Germany be able to levy tax on the profits of the permanent establishment?
  • How are profits divided between the company and the permanent establishment?
  • How does Germany tax the profits of a permanent establishment?

Counselhouse legal services supported the company in evaluating the working relationship between the Chinese company and its workers in Germany and advising on how to stay compliant with German tax regulations.

Questions to be considered:

  • Double tax treaty or national law applicable?
  • Fixed place of business?
  • Business conduct of company's operations?
  • Exemption rules?
  • Empowered to conclude contracts on company's behalf?

How we helped:

Counselhouse's legal advisors helped clarify the legal status of the Chinese company's activities in Germany.

We help companies plan their activities in Germany so as to minimize the risk of their permanent establishment.

Katerina Koleva

Katerina Koleva

Attorney-at-Law
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Copyright Counselhouse 2017
*Copyright Counselhouse 2017. Counselhouse is a legal service provider. All legal advisory services offered on this website are provided by René Udwari & her team. René Udwari is a registered business lawyer in Germany.