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:

Preferred Stock

An ownership type in a corporation that prioritizes claims on assets and income over ordinary shares, often characterized by consistent dividend payouts.

Expected Return

The anticipated return on an investment, accounting for various outcomes and their probabilities.

Cumulative Voting

A voting system that allows shareholders to allocate their total votes in any manner they choose among the candidates running for a position.

Minority Representation

The inclusion and representation of individuals from smaller or less dominant groups within a larger population, often in governance, organizations, or research.