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Tax Residence, CFC & Permanent Establishment

Residence Positions Built on Facts, Not Just Formal Documents

Averites advises founders, shareholders, executives, investors and international businesses on tax residence, controlled foreign company rules and permanent establishment exposure.

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OUR APPROACH

How We Advise on Tax Residence, CFC and Permanent Establishment

  1. Why These Issues Matter for Internationally Spread Businesses

    These issues are particularly important where ownership, management, employees and commercial activity are spread across several countries.

  2. Why Incorporation Alone Doesn’t Determine Tax Position

    For companies, the jurisdiction of incorporation does not necessarily determine the full tax position. Depending on applicable law and treaties, the location of senior management, decision-making, personnel, premises or commercial activity may create tax residence or taxable presence elsewhere.

  3. Corporate Residence and Permanent Establishment

    We advise businesses on corporate residence, place of effective management, management and control, fixed-place permanent establishments, dependent-agent exposure and other circumstances in which activities conducted in one jurisdiction may create tax obligations for an entity incorporated in another.

  4. Controlled Foreign Company Rules for Individuals

    We also advise founders, shareholders and other individuals on controlled foreign company regimes affecting ownership of international companies and investment structures. This includes ownership and control analysis, reporting obligations, available exemptions and potential restructuring where an existing foreign holding arrangement creates unintended tax consequences.

  5. Personal Tax Residence and Dual-Residence Questions

    For individuals with connections to several countries, we advise on personal tax residence, dual-residence questions and applicable treaty tie-breaker rules, working with local tax advisers where required.

  6. Focusing on Facts, Not Just Formal Documents

    Tax residence is often affected by facts rather than formal documents alone. We therefore focus on how the client actually lives, manages businesses, exercises authority and conducts operations.

  7. Advance Planning for Relocation

    For entrepreneurs and executives considering relocation, advance planning can be particularly important. A move may affect not only personal taxation but also the residence or permanent establishment position of companies they manage.

  8. Coordinating Individual and Corporate Analysis

    We coordinate the individual and corporate analysis so that a change intended to solve one issue does not inadvertently create another.

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Precision across borders. Book a Meeting

New York c/o Chornous Law PLLC
30 Wall Street, 8 Floor
New York, NY 10005 Phone: +1 650 382 7764
London 124 City Road
London, England
EC1V 2NX Phone: +44 7405 138109
Kyiv 11 Panasa Myrnoho Street
Office 1/1
Kyiv, 01011 Phone: +380 63 148 27 37

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FAQ

Frequently Asked Questions

  • No. The jurisdiction of incorporation does not necessarily determine the full tax position. Depending on applicable law and treaties, the location of senior management, decision-making, personnel, premises or commercial activity may create tax residence or taxable presence elsewhere.

    • We advise businesses on corporate residence, place of effective management, management and control, fixed-place permanent establishments, dependent-agent exposure and other circumstances in which activities conducted in one jurisdiction may create tax obligations for an entity incorporated in another.

      • We advise founders, shareholders and other individuals on controlled foreign company regimes affecting ownership of international companies and investment structures, including ownership and control analysis, reporting obligations, available exemptions and potential restructuring.

        • For individuals with connections to several countries, we advise on personal tax residence, dual-residence questions and applicable treaty tie-breaker rules, working with local tax advisers where required.

          • Not necessarily. Tax residence is often affected by facts rather than formal documents alone. We focus on how the client actually lives, manages businesses, exercises authority and conducts operations.

            • For entrepreneurs and executives considering relocation, advance planning can be particularly important, since a move may affect not only personal taxation but also the residence or permanent establishment position of companies they manage.

              • Yes. We coordinate the individual and corporate analysis so that a change intended to solve one issue does not inadvertently create another.