It’s not creating the permanent establishment abroad that’s the hard part — it’s figuring out how much tax to pay

Expanding abroad may seem straightforward, but understanding tax rules is where complexity arises. 

When a Permanent Establishment (PE) is established, the real challenge is determining how much profit should be attributed and which Corporate Income Tax (CIT) rules apply. 

And while PE is defined in international tax law, each Baltic country: Estonia, Latvia, and Lithuania interprets and applies it differently. From registration to deductible costs, payments to HQ, and loan interest rules – the nuances matter. 

To make these differences clear, we’ve prepared an infographic that highlights the key aspects across all three jurisdictions. 

Curious how it works in practice?  Read here: http://bit.ly/4gixCot