Timor-Leste

The definition of a corporate resident (resident legal person) covers a wide range of entities, such as companies, partnerships, trusts, governmental institutions, and unincorporated associations incorporated, formed, organised, or established in Timor-Leste.

Permanent establishment (PE)

A PE is generally defined as a fixed place of business through which the business of a person is wholly or partly carried on, including:

• A place of management.
• A branch.
• A representative office.
• An office.
• A factory.
• A workshop.
• A mine, an oil or gas well, a quarry, or any other place of extraction of natural resources, including any place of drilling for mineral exploration.
• A fishery, place where animal husbandry is conducted, farm, plantation, or forest.
• A construction, installation, or assembly project.
• The furnishing of a service through employees or other personnel if conducted for more than 60 days in any 12-month period.
• A natural or legal person acting as a dependent agent.
• An agent or employee of a non-resident insurance company if the agent or employee collects premiums or insures risks in Timor-Leste.

Law No. 17/2023 (as the second amendment to Law 8/2008) seems to introduce a new definition of PE which indicates that a PE is defined as a branch or other form of permanent representation duly registered with commercial registry services of Timor-Leste, through which a non-resident demonstrably carries out their business activities in national territory. It is not clear whether this new definition overrides the prior definitions as mentioned above. Specific advice must be sought in this matter. 

"Permanent establishment," a branch or other form of permanent representation duly registered with the commercial registry services of dsTimor-Leste, through which a non-resident demonstrably carries out their business activities in national territory.