Non-Discrimination in European and Tax Treaty Law

I. S. 42Introduction

The European Union (EU) was created with the objective of establishing an internal market and an economic and monetary union. The values and mission of the EU are described by Articles 2-6 of the Treaty on the European Union (TEU), and, among other aims, encompass freedom, democracy, equality, rule of law, respect of human right, peace, well-being of people, cohesion and solidarity, and an area of freedom, security and justice, without internal frontiers. For the creation of an internal market the free movement of goods, services, capital and persons is necessary.

Under EU law, it is common to use similar concepts for permanent establishments, agencies and branches. It is possible to find a definition in Article 2 paragraph 2 of the Parent-Subsidiary Directive, which provides that “the term ‘permanent establishment‘ means a fixed place of business situated in a Member State through which the business of a company of another Member State is wholly or partly carried on in so far as the profits of that place of business are subject to tax in the Member State in which it is situated by virtue of the relevant bilateral tax treaty or, in the absence of such a treaty, by vir...