HR Glossary

What is Permanent Establishment Risk?

The risk that a company's activities in a foreign country, often through remote employees or contractors, create a taxable business presence that triggers corporate income tax obligations in that jurisdiction.

Why it matters in hiring

Permanent Establishment Risk comes up whenever teams compare candidates, set policy or report on people data. Getting the definition right keeps decisions consistent, which is the same reason springhire scores every applicant against the same criteria rather than on impression.

Related terms starting with P

• Performance Improvement Plan (PIP)
• Performance Management
• Performance Rating
• Performance Review
• Perquisites (Perks)
• Pet Insurance
• Phantom Stock
• PIPEDA - Personal Information Protection (Canada)

Part of the springhire HR glossary, 1,150+ HR, payroll and recruiting terms defined. Free, no signup.