Permanent establishment (PE) is a tax status obtained by a foreign company as a result of regular business activities in Russia. PE is created if a foreign company regularly conducts entrepreneurial activities in Russia at some fixed place.
Entrepreneurial activity is understood as activity aimed at systematically generating income (Clause 1, Article 2 of the Civil Code of the Russian Federation). Moreover, if jobs are created and an employment contract is concluded with an individual, that is, the employee works in an oce, then the organization is obliged to open a permanent representative office. An exception is an employment contract with a remote employee, a civil contract with an individual to perform work (provide services), as well as the implementation by a foreign organization of preparatory and auxiliary activities on the territory of the Russian Federation in the absence of signs of a permanent establishment.