24x7 Service; AnyTime; AnyWhere

Determination of permanent establishment in e-commerce: An exploratory study

Othman, Zaleha and Mohd Hanefah, Mustafa and Bidin, Zainol (2005) Determination of permanent establishment in e-commerce: An exploratory study. In: International Conference on E-Commerce (ICoEC) 2005, 10-11 Jan 2005, The Summit Hotel, Subang USJ, Selangor, Malaysia.

[thumbnail of 40.pdf] PDF
Restricted to Registered users only

Download (194kB) | Request a copy


Permanent establishment has been used as a principle or threshold to determine whether a country has taxing rights on the business profits of a non-resident taxpayer.That threshold, however, has raised many questions in the context of e-commerce. Many countries are now concerned of how to determine permanent establishment in an e-commerce environment. Some view that the existing rule is insufficient to cope with e-commerce. This is because the existing tax rules were not designed in the era of e-commerce.Tax authorities are also concerned about the tax revenue loss, as there are no specific tax laws relating to permanent establishment in e-commerce. This study was conducted to solicit the perceptions of tax offices and tax practitioners on the criteria used to tax business profits in an e-commerce environment.This paper discusses how permanent establishment is determined in the conventional and e-commerce environments.The findings indicate that the existing tax threshold concerning permanent establishment is applicable in taxing e-commerce business profit, however, further amendments and changes should be incorporated to cater for e-commerce environment.The subjects also perceived that additional criteria should be included in the existing tax laws on permanent establishment to ensure tax treatment on e-commerce do not leave room for tax loss.

Item Type: Conference or Workshop Item (Paper)
Additional Information: ISBN: 983-3282-09-1 School of Accountancy, Universiti Utara Malaysia
Subjects: H Social Sciences > HF Commerce
Divisions: College of Business
Depositing User: Dr. Zaleha Othman
Date Deposited: 24 Jun 2015 07:43
Last Modified: 24 Jun 2015 07:43

Actions (login required)

View Item View Item