How to Protect Your Business from Permanent Establishment Risk
When operating overseas, you must know what may trigger a PE risk. Learn about the three effective ways to protect your business.
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In this guide:
- Types of permanent establishment
- Risks of permanent establishment
- Three strategies to protect your business
When a business reaches the stage of having a steady and continuing presence in a foreign country, it becomes subject to taxation in both its home country and the host country because it's deemed a permanent establishment.
Hiring international workers may open companies to this risk, which often makes employers hesitate to tap into the global talent pool.
Luckily, there are several strategies that can help you prevent the permanent establishment risk, one of them being an employer of record. Hiring global workers through an EOR like Deel can help through:
- Localized contracts
- Country-specific statutory benefits:
- In-house payroll
It's the fastest and most cost-effective to expand globally while maintaining full compliance in local jurisdictions.
Download our guide to learn more about how you can protect your company's operations, finances, and reputation from permanent establishment risks no matter where you hire.
