Group items tagged

The SAT Interpretation lists certain factors (such as whether the overseas parent company directs the work of the employee or bears the salary costs of the employee, whether any profit is derived from the secondment, etc.) to determine if a seconded expatriate is working for the parent company. If any one of the conditions is met, the tax authorities may determine that the seconded expatriate is working for the parent company. The treaty clauses regarding PE will then be applied to determine whether the parent company creates a PE in the country where the subsidiary is located. In other words, if any of the factors are deemed to apply, the risk of the offshore parent company being deemed to have a