Tax alert: PE is independent economic center, profit attribution to PE cannot be restricted due to global income or loss has been saved
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Tax alert: PE is independent economic center, profit attribution to PE cannot be restricted due to global income or loss
23 October 2024
The full bench of the Delhi High Court (HC) has rendered its decision, while overruling an earlier HC ruling, that a permanent establishment (PE) of a foreign company, is an independent taxable entity and Article 7 could not possibly be viewed as restricting the right of the source State to allocate or attribute income to the PE, based on any global income or loss that may have been earned or incurred.
