Will engaging a worker in this model protect our business from the risks of Permanent Establishment (PE) in Australia?
Permanent Establishment is a fixed place of business which generally gives rise to income or value added tax liability in a particular jurisdiction. With our employer of record service, our clients have no need to establish any form of fixed business presence in the country they wish to engage a worker in. In most cases, this will protect clients from the risk of Permanent Establishment. However, each case is different, and it is recommended that clients seek tax advice on this matter.