German partnership taxation deviates from most other jurisdictions with respect to remunerations paid to partners, so-called special remunerations, and is not in line with most tax treaties that Germany has concluded. Therefore, in its domestic law, Germany has introduced a provision that unilaterally overrides tax treaties in order to secure this taxation right. The German Federal Fiscal Court (BFH) has recently upheld its opinion that a treaty override is unconstitutional, and has asked the German Constitutional Court for a preliminary ruling. Furthermore, this decision cast some light on the German understanding of the attribution of assets to permanent establishments for an enterprise conducting cross-border activities.