Advised e-commerce company regarding permanent establishment

Our tax law experts have consulted one of the biggest e-commerce companies in the Baltic countries. Our client has acquired an e-platform from one of the leading online retail market players in the Baltic states. We have advised on choosing the most efficient model for performing e-commerce business in Latvia and Estonia without establishing a separate entity in those countries.

Our analysis was aimed to eliminate the requirement to register permanent establishments in those countries for corporate income tax purposes. Taking into consideration recent developments in e-commerce taxation provided by the OECD, our tax law experts have come up with a decision that the acquisition of another e-platform in our client’s e-commerce processes should not increase the risk of permanent establishment creation in those countries.