Under a U.S. treaty, what must a non-resident corporation create in the United States before it is subject to U.S. taxation on its business profits?
A)U)S. trade or business.
B)Permanent establishment.
C)The physical presence of at least one employee.
D)The physical presence of an asset such as a warehouse.

Question

Quizplus · Accepted Answer

Non-resident corporations are subject to U.S. taxation on their business profits if they have a permanent establishment in the United States. A permanent establishment is defined as a fixed place of business where the corporation carries out its activities in the United States, either wholly or partially, on a regular or systematic basis. It can include an office, a branch, a warehouse, or other facilities. The presence of employees or assets is not sufficient to create a permanent establishment unless they are used in the regular conduct of the corporation's business in the United States.

Under a US