Attribution of Profits to Permanent Establishments
1. Aufl. 2020
Besitzen Sie diesen Inhalt bereits,
melden Sie sich an.
oder schalten Sie Ihr Produkt zur digitalen Nutzung frei.
S. 193Profit Attribution of Significant Economic Presence and the Market State – Panel Discussion
Case Study 1
The case study dealt with an over-the-counter (OTC) business model for drugs. The following questions were asked:
What is your solution based on the current rules?
What is your solution based on the new rules suggested by the OECD discussion draft?
Do you think the new rules properly align taxation with value creation?
What are the main issues under the two solutions above, and how can these be solved in practice?
Chair: Our discussion revolves around the latest document published by the OECD on the Unified Approach. The OECD is trying to tax in a country where the entity does not have any physical presence. The solution conceived so far is to find a new nexus in a country even without such presence. The document contains certain indications on what the direction is there, e.g. where you have revenues, you have the new nexus. Of course, when you have a nexus, you also need to have new rules to attribute the profit to that nexus. The so-called amount A takes care of this and tries to attribute profits to market countries by means of a kind of a fixed-ratio formula approach. Furt...