permanent establishment (tax law)
A fixed place of business through which a company carries out its operations, used in international tax law to determine tax obligations. Often abbreviated as PE.
See also: 恒久的施設
If a foreign company has a permanent establishment in Japan, it may be taxed in Japan.
The definition of permanent establishment varies depending on the tax treaty.
Synonymous term also used in tax law; 恒久施設 is a slightly more compact form.
Compound of 恒久 (permanent) and 施設 (facility, establishment). The term is a direct translation of the English legal concept 'permanent establishment'.