Permanent establishment (PE) domestic lawUnited States: Extension of High-Tax Exclusion rules to foreign branches and modification of the foreign branch definitionOn 25 August 2021, the United States (US) Senate Finance Committee issued a discussion draft to amend certain international tax rules. Among other items, the draft proposes to extend the High-Tax Exclusion (HTE) rules to income of foreign branches. HTE rules allow taxpayers to exclude from their global intangible low-taxed income (GILTI) inclusion items of a controlled foreign corporation’s (CFC) gross-tested income. Hence, high-tax income from a foreign branch of a US corporation would be exempt from tax. Foreign branch...