Germany - Permanent Establishment Taxation in Germany in a Post-AOA-Implementation Era: A Primer on Exceptions and Problem Areas
- S. Hentschel; G. Kraft; T. Moser
- European Taxation, 2018 (Volume 58), No 2/3
- 19 January 2018
This article examines the implementation of the Authorized OECD Approach in Germany, which is problematic, as most German tax treaties are not based on the current article 7 of the OECD Model, potentially resulting in a mismatch in treatment of PEs from a domestic law versus treaty perspective. To remedy this, Germany has enacted an escape clause. This article classifies Germany’s tax treaties, providing a taxonomy of treaties falling under the purview of the escape clause in particular contexts.