Eos Global Expansion

What is PE Risk ?

What is PE Risk ?

Some companies choose to avoid establishing a foreign subsidiary by deploying staff abroad under the employment of their HQ company. Others hire staff locally as “independent consultants” on full-time or exclusive basis. In such cases, the authorities where your staff are operating may decide that by retaining full-time staff there, even as consultants, your company has effectively created a branch, or Permanent Establishment ( PE ), and they may seek to audit and levy taxes and penalties on your HQ as a result. At best, this can drain huge amounts of time and mind-space for your management staff. At worst, significant penalties can result.

Author

eosadmin

Eos Global Expansion is the one-stop shop for global expansion and provides global HR services. Hire staff quickly & compliantly, without the cost, delays, or resource drain of setting up a foreign subsidiary.

Reviewer

Chris Alderson MBE

Chris Alderson is a seasoned CEO with over 25 years of experience, holding an honours degree from Durham University. As the founder and CEO of various multinational corporations across sectors such as Manufacturing, Research & Development, Engineering, Consulting, Professional Services, and Human Resources, Chris has established a significant presence in the industry. He has served as an advisor to the British, Irish, and Japanese governments, contributing his expertise to international trade missions, particularly focusing on global expansion and international relations. His distinguished service to the industry was recognised with an MBE (Member of the Order of the British Empire) awarded by Her Majesty Queen Elizabeth II.

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