My business operates in two countries — where does corporate tax apply?

Possibly, if it creates what is known as a “Permanent Establishment” — a fixed place of business through which the core income-generating activities are carried out, even if the parent company is registered elsewhere. A mere representative office or purely preparatory/auxiliary activity is not enough on its own to establish one.

Companies operating across more than one country need to review their actual on-the-ground activity, not just the incorporation paperwork. At RASEEKH, we analyze the real nature of your activity before determining your tax obligation in each country.