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Managing Permanent Establishment (PE) risk is a smart business move for organizations with international operations. By proactively managing PE risk, companies can promote tax compliance, expand globally tax-compliantly, and avoid penalties and interest charges from tax authorities. This approach provides a greater sense of security on a challenging issue and helps to prevent unnecessary taxation and interest payments due to mistakes or lack of awareness. By taking control of PE risk, companies can minimize potential negative impacts on their reputation, financial performance, and regulatory compliance while maximizing the benefits of their global operations.