Moscow Federal Arbitration Court confirmed that a representative office may constitute a PE under certain circumstances

In Decision of 2 August 2012 N ?40-58575/11-129-248, the Moscow Federal Arbitration Court ruled that a representative office may constitute a permanent establishment (PE) in Russia, under certain circumstances.
In the case at hand, a Swiss incorporated company (Swiss AG) carrying out activities, such as import and export of machinery, medical and dental technique, had registered a representative office in Russia. Swiss AG sold goods in Russia, but the contracts were negotiated and signe…