The institute of permanent representation in tax law of the Russian Federation

Abstract

The Institute of Permanent Representation has been used in tax law for quite a long time. Meanwhile, Russian tax science representatives rarely turn to the analysis of the concept, but misunderstanding of the essence of the phenomenon leads to incorrect application (or non-application) of the provisions of the RF Tax Code concerning permanent representation. Permanent Representation is a complex concept of tax law. The main purpose of this concept is to establish such a regime of taxation of a foreign organization that takes into account the interests of a taxpayer, interests of a state that is a source of income, and interests of a state of residency of the organization. The institute of permanent representation in many ways is similar to the institute of tax residency, as it characterizes a taxpayer and reflects his connection with a state that has the right to charge a tax. The paper carries out the analysis of a legal nature of Permanent Representation and compares it with similar concepts of tax law.