Which of the Following Would Qualify as a Permanent Establishment

question 84

Multiple Choice

Which of the following would qualify as a permanent establishment for income tax treaty purposes?

• A)The presence of corporate employees in the host country for a limited time period.
• B)Shipment of goods by the foreign corporation to customers in the host country.
• C)Maintenance of a sales office in the host country.
• D)All of the above would qualify as a permanent establishment.

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Definitions:

Long-run

A period in economics sufficient for all markets to adjust to changes, including those made in physical capital or production capacities.

Average Total Cost

The total cost of producing a particular quantity of output divided by the quantity of output produced, encompassing both fixed and variable costs.

Input Prices

The cost of resources used in the production of goods and services.

Total Costs

All costs involved in manufacturing goods or providing services, incorporating both stable and changeable expenses.