Permanent Establishment Taxation in Germany in a Post-AOA-Implementation Era: A Primer on Exceptions and Problem Areas

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.