Permanent Establishment: “fixed” place of business through location in Asia

Fixed place of business for Permanent Establishment in Taiwan

According to MOF rulings, whether a geographical area constitutes one “place”
for the purpose of definition will depend on whether the place is located in the
tax jurisdiction governed by the same city tax office. Currently, except for
the MOF which is mainly responsible for designing tax policies and supervising
the collection of taxes and duties at all levels of tax offices, tax administration at the local tax office is organized as follows.

If the places are located in the same city and are governed by the same tax office, then these places of business constitute one “place” for the purpose of the definition.

There are three MOF rulings relating to the geographical location with regard
to Permanent Establishment issues.

When a construction company and its job site offices/reception centers are located in the same tax jurisdiction (same city), it is the company which should report VAT tax. However, if the company and the job site offices/reception centers are located in different tax jurisdictions, then the job site office/reception center should conduct its own tax registration if it has business/sales activity in the specific tax jurisdiction. If there are several job site offices/receptions in the same tax jurisdiction, then the company may nominate one of them to carry out the tax registration. This seems to suggest that if the “places of business” are located in the same city and governed by the same tax office, then these places of business constitute one “place” for the purpose of the definition.

More about Permanent Establishment in Permanent Establishment International Tax