International Taxation | Quarterly Insights – April 2025

Navigating International Tax Developments: Key Insights from April 2025

Understanding the nuances of international taxation is more crucial than ever as cross-border business operations continue to expand. The April 2025 edition of CNK & Associates LLP’s International Taxation Quarterly Insights brings to light several significant judicial rulings that shape the tax landscape for multinational enterprises operating in India.

This edition highlights two pivotal cases:

  1. The Samsung Electronics PE case, where India’s Income Tax Appellate Tribunal clarified that seconded employees from a foreign entity to an Indian subsidiary do not trigger a Permanent Establishment (PE) if they are not involved in the parent company’s business operations or income generation in India.
  2. The Shell Global Solutions case, which underscores the importance of having a Place of Effective Management (POEM) in Mauritius to claim treaty benefits under Article 8 of the India-Mauritius Tax Treaty. When POEM is lacking, shipping income may be taxable in India—subject to the existence of a PE.

These updates are particularly relevant for companies involved in cross-border employee secondment, international shipping operations, and treaty-based tax planning. The decisions provide much-needed clarity on PE risk management, treaty eligibility, and international tax compliance, helping global businesses structure their operations with confidence.