Global Payroll 2 min

[Webinar Recording] Permanent establishment risk: Debunking the myths

November 11, 2021
Preston Wickersham


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International growth is great, but as companies expand their presence in more countries, it also leads to more risk. Businesses hiring globally need to be aware of permanent establishment risk. A misunderstanding of permanent establishment can lead to additional taxes, operational mistakes, and fines and penalties in multiple countries.

In this permanent establishment webinar and insightful Q&A, we lay out the foundations of permanent establishment and how to mitigate the risks if you are building a global team.

Watch the full webinar on permanent establishment risk now!

Watch the full one-hour webinar featuring Remote’s team of Nadia Vatilidis, VP of People; Pedro Barros, VP of Finance; Ana Vieira, Director of Tax; and Roderick van Vliet, former Chief Risk Officer. Remote’s experts discuss everything global teams should understand about permanent establishment risk and hiring in new countries.

What is permanent establishment risk?

Permanent establishment is a tax term that applies to certain businesses with an ongoing presence in a country. Permanent establishment risk is determined by many factors, including time the business has operated in the country, how the company generates revenue, where strategic decisions are made, and even where the server on which the website is stored is located. Any number of factors can combine to cause a company to enter permanent establishment risk.

Any business that operates in multiple countries is potentially exposed. Avoiding permanent establishment risk requires ongoing review of local laws and regulations, as labor laws and individual companies are constantly evolving.

Compliance and a robust understanding of local laws is a key element in managing a successfully distributed team. Consider Remote your local experts on the ground when it comes to understanding laws in different countries.

Get in touch to continue the conversation or book a demo to learn more about Remote. Ready to get started now? Sign up for free and begin onboarding international employees and contractors in minutes.

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