Hi,

Would like to know the definition of Permanent Establishment as quoted in the Pub 901 for U.S. Tax treaties

'The income is not borne by a permanent establishment, fixed base, or trade or business the employer has in the United States.'

Does this include employers having an address over here, or they should have a stock listed? What does it actually represent.

Thanks

It is a matter of interpretation. If they have permanent employees with financial accounts (like bank accounts), they have permanent establishment.

I presume you are thinking about the treaty exemption on employee income and whether the salary is born by an employer with a permanent establishment in the US?

Is the employer going to deduct it against their US income -- then likely you are going to need to report it in your US income.