A person acting in a contracting state on behalf of an enterprise who, in doing so, habitually concludes contracts may constitute an agency PE both, under domestic law and the provisions of tax treaties. However, so far it has been unclear whether a chairman, a managing director, or board members of a legal person acting as sales force in market (source) states could constitute an agency PE. German courts tended to consider board members as acting “as the corporation itself” and not “on behalf of the corporation”, thus refusing the application of the agency PE rule. In its recent decision of October 23^rd, 2018, I R 54/16, the German Federal Fiscal Court took the opposite view and confirmed that managing directors and board members of a corporation (regardless of the ownership) very well may constitute a PE both, under German domestic law and a tax treaty’s provision. Stefan Bendlinger gives an overview of the recent court decision and its consequences for international profit attribution.