Attribution of Profits to Permanent Establishments

This book presents the most important issues and recent developments related to the attribution of profits to permanent establishments. It contains the opinions of representatives of tax administrations, multinationals and tax advisories.

Attribution of Profits to Permanent Establishments: Issues and Developments

The profit attribution to permanent establishments is one of the most controversial topics in international tax law. In recent years it was subject to various changes based on the introduction of the Authorized OECD Approach in 2008 and 2010, the outcomes of Final Report on OECD BEPS Action 7 and the Final Report on Additional Guidance on the Attribution of Profits to a Permanent Establishment under BEPS Action 7 from 2018 (with the previous Discussion-Drafts).

This publication discusses the most important issues and recent developments related to the attribution of profits to permanent establishments. Starting with an in-depth analysis on the commonalities and differences between the profit attribution provisions in modern double tax treaties (ie Art 7 AOA vs Art 9 OECD/UN Models), it further deals with topics such as profit attribution to PEs and PE exemptions (Art 5 para 4), profit attribution to agency PEs (Art 5 para 5 and 6), and profit attribution to a "significant economic presence" and to market states.

This book is based on the outcomes of the presentations and discussions held during the WU Transfer Pricing Symposium that took place in October 2019 at the WU Vienna University of Economics and Business. The authors, apart from providing a theoretical background to the discussed issues, also present case studies that show how certain issues can be approached in practice. Every chapter ends with a summary of the opinions on the issues at stake of representatives of tax administrations, multinationals and tax advisories, which completes this essential practical guideline.

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Auteur
Professor und Vorstand des Instituts für Österreichisches und Internationales Steuerrecht und Vizerektor der WU; wissenschaftlicher Leiter des LL.M.-Studiums International Tax Law der WU; Sprecher des Doktorandenkollegs Doctoral Program in International Business Taxation (DIBT) der WU; Schriftleiter der Fachzeitschrift Steuer und Wirtschaft International (SWI), Präsident der International Fiscal Association (IFA) Österreich.Visiting professor at the Institute for Austrian and International Tax Law at WU Wien and former honorary professor for company taxation and managerial finance at the Institute of Accounting, Controlling and Auditing (ACA) at the University of St. Gallen/Switzerland. Co-Chairman of the Board of Directors of the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at Vienna University of Economics and Business (WU).Dr. Raffaele Petruzzi, LL.M. is managing director of the WU Transfer Pricing Center at the Institute for Austrian and International Tax Law at WU (Vienna University of Economics and Business) and an international tax advisor specializing in international corporate taxation and transfer pricing at L&P Global (Vienna) and at Ludovici Piccone & Partners (Milan).