Cross-border taxation of permanent establishments : an international comparison

Resource Information

The work Cross-border taxation of permanent establishments : an international comparison represents a distinct intellectual or artistic creation found in International Bureau of Fiscal Documentation. This resource is a combination of several types including: Work, Language Material, Books.

Label

Cross-border taxation of permanent establishments : an international comparison

Creator

• Waltrich, A

Subject

• BEPS
• OECD Model
• PE
• agency PE
• allocation of profits
• AOA
• construction project
• nexus
• source principle of taxation
• tax treaty
• case law

Language

eng

Summary

The permanent establishment (PE) is a legal form of cross-border direct investment whereby a business presence is maintained as an integral part of the foreign investor. Due to the growing intensity and complexity of international business relations, the PE definition and the allocation of profits between head units and PEs have become highly contentious, especially from the perspectives of the major emerging economies of the BRIC countries (Brazil, Russia, India, and China). Unsurprisingly, the potential for tax avoidance and the scrutiny of tax authorities have increased enormously. Against this background, this book illustrates and compares the OECD Model Tax Convention (OECD MC) with country-specific source taxation rules, focusing on possible tax system changes and offering reform proposals. Emphasizing the taxable implications of the various rules upon country-specific PE concepts, the author's treatment covers such issues and topics as the following: the PE definition of the OECD MC and from the perspective of selected countries; allocation of business profits under the Authorised OECD Approach (AOA); avoidance of PE status; implementation of a service PE proposal; construction site PEs established by subcontractors; existence of an agency PE; and the OECD project on Base Erosion and Profit Shifting (BEPS). The author uses simulated cross-border national and treaty cases to highlight qualification conflicts, thus reinforcing his detailed discussion of source taxation rules of business profits and relevant case law in Germany, the United States, and the BRIC states. There is also a checklist detailing how companies can avoid unintentionally setting up a PE

Geographic coverage

International

Index

no index present

Language note

English

Literary form

non fiction

Series statement

Series on International Taxation

Series volume

59