7th National Direct Tax Summit and Awards 2024 - Dilution of Concept of PE (Permanent Establishment)

At the 7th National Direct Tax Summit and Awards 2024, held in Mumbai and organized by Achromic Point, Nexdigm led a compelling session on the “Dilution of Concept of PE (Permanent Establishment)”.

The speakers from Nexdigm shared how globalization, digital transformation, and evolving business models are challenging traditional interpretations of PE. They emphasized how tax authorities are now focusing on economic substance over physical presence, especially in light of the OECD’s BEPS Action Plan 7.

They highlighted the increasing relevance of dependent agent PEs, contract splitting, and fragmented activities, and how these are prompting tax authorities worldwide to revisit PE assessments. The session underscored the importance for multinational businesses to re-evaluate their operational and contractual structures to avoid unexpected tax exposures.

The discussion concluded with strategic takeaways on risk mitigation and the need to stay ahead of regulatory developments—encapsulated in Nexdigm’s forward-looking theme, “Think Next.”