The Attribution of Profits to Permanent Establishments
Book overview
This book analyses how cross-border transactions between different branches of the same enterprise are taxed in various countries. It analyses the considerations between income tax treaties and domestic tax laws. Developing an understanding of these rules is valuable for companies seeking to optimize their tax positions and leverage potential tax benefits, as well ensuring tax compliance.
Key themes and topics
Navigating the intricacies of profit attribution to permanent establishments (PEs) stands as one of the most complex subjects within the international tax arena. The intricate interplay between tax treaties and domestic tax laws of two countries can occasionally result in undesirable outcomes, including double taxation or double non-taxation, especially when a single enterprise operates in a foreign country with distinct divisions. Addressing these issues, the contributors of this book assesses the cross border tax dealings involving distinct divisions of a single enterprise across several countries.
This tax book serves as a crucial resource for professionals involved in the daily handling of PEs, such as tax advisers, tax lawyers, tax authorities, and accountants. It provides valuable insights from experts on international tax law, including detailed explanations and accompanying technical explanations of relevant regulations. University scholars and students will also find this book a valuable tool to enhance their understanding of this complex field, offering a clear analysis of how foreign income is taxed and the importance of navigating the rules in different countries to ensure the correct tax filing.
Part I
The book opens with an exploration of how transactions between a PE and the enterprise it belongs to should be treated under tax treaties. It offers a historical overview of the evolution of Article 7 of the OECD Model Convention, tracing its origins from the Draft Conventions developed by the League of Nations through to the present OECD Model and Commentary, including the recent OECD Discussion Drafts.
Part II
A comparative analysis is provided, examining the tax implications of transactions between different parts of the same enterprise based on the domestic laws of the countries studied. Four distinct cases are thoroughly investigated:
- the transfer of assets (both fixed assets and trading stock);
- the use of intangibles;
- the provision of services; and
- the transfer of funds.
The survey encompasses 19 countries, and a summary of the findings is provided at the conclusion of Part II.
Part III
The book wraps up with a discussion on specific topics, including the application of the PE non-discrimination clause, the impact of EC legislation, and the potential for source taxation concerning the tax treatment of intra-company transactions.
David Francescucci, Sarig Shalhav, Johann Hattingh, Helmut Moritz, Ronald Evans, Juan Angel Becerra, Patrick Seroin, Rijkele Betten, Cees Faber, Omar Morales, Radhakishan Rawal, Ana Carolina Pereira Monguilod, Sebastian Löser, Raffaele Russo, René Offermanns, Mario Petriccione, Eduardo Meloni, Emidio Cacciapuoti, Luis J. Durá García, Alessandro Caridi, Olivier Ferrari, Annamarie James, Lari Hintsanen, Angel J. Juarez, Alexandre Siciliano Borges.
Downloads
Sample excerpt, including table of contents
Countries/Jurisdictions covered
Venezuela, Canada, Spain, Belgium, India, USA, Switzerland, Finland, Argentina, UK, Italy, Chile, Netherlands, Mexico, South Africa, Germany, Brazil, Austria, France.
