22 Mar 2017

The concept of Place of Effective Management (“POEM”) instead of “Place of Control and Management” (“POCM”) for determining the residential status of the companies was introduced by the Finance Act, 2015. POCM was based on place of incorporation or the place from where the company was ‘wholly’ controlled and managed. The reason for introducing the concept of “effective” management is that there may be cases where a company may have more than one place of management; however, there can only be one place of “effective” management at any point in time- and it is this place which will be used for determining the tax residency of a company.>>

Share this: