{"id":2370,"date":"2016-04-29T14:39:10","date_gmt":"2016-04-29T12:39:10","guid":{"rendered":"https:\/\/www.startups.ch\/en\/blog\/?p=2370"},"modified":"2016-10-18T17:26:19","modified_gmt":"2016-10-18T15:26:19","slug":"operating-premises-vs-subsidiary-branch-whats-difference","status":"publish","type":"post","link":"https:\/\/blog.startups.ch\/en\/operating-premises-vs-subsidiary-branch-whats-difference\/","title":{"rendered":"Operating premises vs. subsidiary branch – whats the difference?"},"content":{"rendered":"

Operating premises derives from tax law and is wider than the concept of the subsidiary branch. As a rule of thumb, every subsidiary branch is an operating premises, but not every operating premises is a subsidiary branch.<\/strong><\/h2>\n

\"Operating<\/p>\n

Concept of the subsidiary branch<\/strong><\/h3>\n

Operating premises are subsidiary branches that, legally speaking, is a dependent part of a main branch. It carries out the same activities as the main company on a long-term basis at its own site and can therefore be seen as commercially independent (see blog post).<\/p>\n

Concept of the operating premises<\/strong><\/h3>\n

An operating premises is a ‘fixed commercial establishment through which a company’s activities are wholly or partly carried out’ (Art. 5 OECD model convention). Operating premises can be subsidiary branches, commercial offices, manufacturing sites, workshops, sales points, permanent representations and mines (Art. 5 para. 2 of the OECD model).<\/p>\n

Preparatory activities and support functions do not necessarily make a fixed commercial establishment an operating premises (Art. 5 para. 4 of the OECD model). The following entities therefore do not constitute operating premises: storage facilities, warehouses, processing plants, procurement plants, information points, advertising points and research premises (Art. 5 para. 4 of the OECD model).<\/p>\n

A subsidiary company in another country does not constitute an operating premises of the parent company (Art. 6 para. 7 of the OECD model).<\/p>\n

In Switzerland, operating premises are partially tax-liable (Art. 51 para. 1(b) of Switzerland’s Direct Federal Taxation Act [DBG]). This means that, as a minimum, the profits generated in Switzerland will be taxed (Art. 52 para. 2 DBG). Tax law may provide for other taxation in addition to the tax on profit (see blog post).<\/p>\n

\u00bb Further information about the branch <\/a><\/p>\n

\u00bb Calculate offer and found a branch <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Operating premises derives from tax law and is wider than the concept of the subsidiary branch. As a rule of thumb, every subsidiary branch is an operating premises, but not every operating premises is a subsidiary branch.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":true,"_jetpack_newsletter_tier_id":0,"footnotes":"","jetpack_publicize_message":"#Operating premises #subsidiary branch #differences?","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false}}},"categories":[9,12],"tags":[56],"jetpack_publicize_connections":[],"aioseo_notices":[],"views":2445,"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p54Pb1-Ce","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/2370"}],"collection":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/comments?post=2370"}],"version-history":[{"count":1,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/2370\/revisions"}],"predecessor-version":[{"id":2372,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/posts\/2370\/revisions\/2372"}],"wp:attachment":[{"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/media?parent=2370"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/categories?post=2370"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.startups.ch\/en\/wp-json\/wp\/v2\/tags?post=2370"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}