Literaturhinweis

Attribution of Profits to Permanent Establishments

Current Developments, Relevant Issues and Possible Solutions

The profit attribution to permanent establishments (PEs) is one of the most controversial topics in international tax law. In recent years, it was subject to various changes based on the introduction of the “Authorized OECD Approach” in 2008 and 2010, the outcomes of Final Report on OECD BEPS Action 7 and the Final Report on “Additional Guidance on the Attribution of Profits to a Permanent Establishment under BEPS Action 7” from 2018 (with the previous discussion drafts).

This publication discusses the most important issues and recent developments related to the attribution of profits to PEs. Starting with an in-depth analysis on the commonalities and differences between the profit attribution provisions in modern double tax treaties (ie Art 7 AOA vs Art 9 OECD/UN Models), it further deals with topics such as profit attribution to PEs and PE exemptions (Art 5 para 4), profit attribution to agency PEs (Art 5 para 5 and 6), and profit attribution to a “significant economic presence” and to market states.

This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium that t...