Permanent Establishments A Domestic Taxation, Bilateral Tax Treaty and OECD Perspective

Permanent Establishments (PEs) are a key facet of international taxation.

They constitute the crucial threshold for the assignment of taxing rights to a jurisdiction in all cases of enterprises operating in more than one country. The issue of whether there is a PE, and how much profit should be allocated to it, is an increasingly important factor in tax planning, tax accounting, tax compliance, and related tax risk management.

This academically rigorous yet thoroughly practical work provides comprehensive guidance on a variety of complex PE issues. Its initial chapters analyse the latest OECD developments in the context of Articles 5 and 7 of the OECD Model Tax Convention (2010 update) while 19 country chapters cover domestic PE issues as well as country-specific treaty developments from a practical perspective.

The work consists of two parts:

Part One – PE: The Legal and Compliance Setting.

This section will feature a comprehensive – and highly practical – analysis of the concept of permanent establishment (PE), particularly as it’s embodied in Article 5 of the Model Convention. In a departure from virtually all the current literature, the presentation will afford the reader a truly actionable tool they can use to optimise decision making as it relates to PE in a “real world” setting. The work would initially concentrate on the PE-related issues of most concern to corporate interests: the notion of PE and the allocation of profits.

Part Two – Country-specific PE profiles

Designed to facilitate the reader’s decision making by allowing them to easily compare-and-contrast critical PE-related data over an array of key national jurisdictions.

Countries covered:

Australia, Austria, Belgium, China, Denmark, Estonia, France, Germany, Hungary, India, Italy, Japan, The Netherlands, Russia, Spain, Sweden, Switzerland, United Kingdom, United States