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:

Venture Capital

Financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

Financing

The act of providing funds for business activities, making purchases or investing, often involving loans, equity, or other forms of financial instruments.

High-risk Ventures

Business projects or investments that carry a significant chance of failing but may offer high rewards if successful.

Rights Offering

A method companies use to raise capital, which gives existing shareholders the right to purchase additional shares at a discounted price before the public.