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4.5. PE Risk Grid for Foreign Entities Involved in Business Activities

The following grid depicts the potential PE risk under domestic law:

ACTIVITY                               POTENTIAL PE RISK
                             High Moderate Remote
Market research (assuming that the activity is carried out through a fixed place of business)                 X     
Solicitation (assuming that the activity is carried out through a fixed place of business)                         X       
Procurement (assuming that the activity is carried out through a fixed place of business)                                      X        
Provision of services (1) (assuming that (i) the service is provided by an enterprise and (ii) it is not carried out through a fixed place of business, or it is carried out for a short period of time – say less than 6 months)                        X    
Provision of services (2) (assuming that (i) the service is an independent personal service (e.g. the services of lawyers, notaries and other services characterized by intuitu personae) or, in any case, (ii) it is carried out through a fixed place of business for a sufficiently long period of time – say more than 6 months)                 X              
Provision of services  (3) (assuming that (i) the service is provided by an enterprise and (ii) it is not carried out through a fixed place of business, or it is carried out for a short period of time – say less than 6 months)                      X         
Secondment of personnel (assuming that the personnel operates under the directions of the company to which it is seconded)               X               
Commissionaire and similar               X           
Post-restructuring low-risk activity              X                 
Ownership, rental/operation of real estate              X       
FORCE OF ATTRACTION                                        NO
BRANCH PROFITS TAX                                      Yes (19%)