1993 SNA Update Information - AEG recommendations for issue:
Recognition of unincorporated branches
|Issue description in [English] | [French] | [Russian] | [Spanish]|
|The Balance of Payments Manual (BPM) indicates that establishments of enterprises located in a
country different from the country of residence of the parent should be treated as notional units,
resident in the country where located under certain conditions. The SNA discusses non-resident
unincorporated enterprises rather than establishments. Should the SNA and BPM be more closely
|Number of AEG recommendations for selected issue:||1|
| Corresponding meeting||Date posted||Recommendation|
| December 2004||11/01/2005||Physical presence is not required for a branch to be recognized.|
Being subject to income tax laws should replace paying income tax as an indicator of the existence of a branch.
All criteria should be considered as indicators for a separate branch but not all criteria have to be met. Even if the entity does not have a full set of accounts, if it engages in production, it should be treated as a branch.