International Tax Aspects of Permanent Establishments

This intermediate/advanced-level course will explore the concept of permanent establishment (PE) in depth. Practical issues, such as legal requirements and profit allocation will be covered. This will be combined with the use of case studies to ensure that participants leave the course with the confidence to apply what they have learned. Emphasis will be placed on a number of complex tax issues relating to PEs, such as non-discrimination, e-commerce, triangular situations and the problems surrounding agency PEs. The latest OECD developments will also be examined.

Topics covered in this course include:

• Basic rule of the PE concept in the OECD Model
• Auxiliary and preparatory activities
• Construction site PEs
• Services
• E-commerce
• Agency PE
• PE concept in the UN Model
• Case law examples
• Profits of an enterprise
• Treaty non-discrimination rules relating to PEs
• European Court of Justice case law on branches
• Branch profits taxes
• Double tax relief for PEs
• Triangular Cases
• Corporate restructuring involving a PE, EU Mergers Directive
• EU Parent-Subsidiary and Interest and Royalties Directives