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RULING OF THE SUPERINTENDENCE OF CORPORATIONS

Permanent establishments that correspond to a branch of a foreign company are subject to supervision of the Superintendence of Corporations

 

In its Ruling of July 19th of 2017, the Superintendence of Corporations resolved a concern related to determine whether the “permanent establishment” defined by the tax legislation, could be analogous to the concept of a branch of foreign company and, therefore, permanent establishments would fall over the supervision of the Superintendence of Corporations.

In this respect, the Superintendence of Corporations determined that if the permanent establishment corresponds to a branch of foreign company, in addition to being subject to the supervision of the Superintendence of Corporations, it would be subject to the treatment applied to permanent establishments under the tax legislation.