Download or read book Attribution of Profits to Permanent Establishments written by Michael Lang and published by Linde Verlag GmbH. This book was released on 2020-04-08 with total page 157 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.

Download or read book The Attribution of Profits to Permanent Establishments written by Raffaele Russo and published by IBFD. This book was released on 2005 with total page 488 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The attribution of profits to permanent establishments (PEs) is probably one of the most complex subjects of the international tax arena. The interaction of treaty rules and domestic legislations sometimes leads to unacceptable results such as double taxation or double non-taxation. This book compares the tax treatment of cross-border dealings between different parts of the same enterprise in several countries."--Extracted from publisher website on June 29, 2016

Download or read book Attribution of Profits to Permanent Establishments in the OECD View written by Thomas Eulenpesch and published by GRIN Verlag. This book was released on 2012-09-06 with total page 34 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2012 in the subject Business economics - Accounting and Taxes, Rhine-Waal University of Applied Sciences, language: English, abstract: In my scientific writing I will write about the attribution of profits to Permanent Establishments in accordance with the updated OECD Model Tax Convention and the OECD Report on the attribution of profits to Permanent Establishments in the Versions of 2008 and 2010. First I will start with the definition of the Permanent Establishment in the German law and according to the OECD Model Tax Convention. Afterwards I will continue with the allocation of Profits to the Permanent Establishment by the two step analysis and the different transfer price methods. Additionally I will write about the hypothetical independent enterprises and special regulations for Banks, the trading of financial instruments and Insurance companies.

Download or read book Five Core Problems in the Attribution of Profits to Permanent Establishments written by R.S. Collier and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The rules regulating the attribution of profit to permanent establishments (PEs) are a fundamental feature of the existing international tax system yet are beset by a multitude of problems. This article identifies five "core" problems with these rules: (1) the absence of a single standard for PE profit attribution; (2) conceptual and practical problems arising in the application of the Authorised OECD Approach (AOA); (3) new pressures arising as a result of the changes made to the PE threshold rules by the BEPS Project; (4) the failure to deal with the uncertainties between the transfer pricing rules and the PE attribution rules in the aftermath of BEPS; and (5) a raft of new challenges arising from the work on the digitalization of the economy. To a large degree, these issues are symptomatic of the problems faced by the international tax system as a whole. This article analyses the source, nature and impact of these core problems, before concluding with some brief thoughts on potential solutions.

Download or read book Attribution of Profits to Permanent Establishments written by Organisation for Economic Co-operation and Development and published by . This book was released on 2001 with total page 73 pages. Available in PDF, EPUB and Kindle. Book excerpt: Currently, there is a lack of consensus amongst OECD Member countries as to how profits should be attributed to a permanent establishment (PE). As a first step in remedying this situation a working hypothesis has been developed as to the preferred approach for attributing profits to the PE. The basis for the working hypothesis is to examine how far the approach of treating the PE as a hypothetical distinct and separate enterprise can be taken and how the guidance in the OECD Transfer Pricing Guidelines could be applied, by analogy, to attribute profits to a PE. This discussion draft contains the results of testing the working hypothesis in general (Part I) and to PEs of banks (Part II). Public comments are invited in order to assist in the development of an OECD consensus on the attribution of profits to a PE.

Download or read book The Attribution of Profits to Permanent Establishments Testing the Interaction of Domestic Taxation Laws and Tax Treaties in Practice written by C.M. Black and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The adoption of the "authorised OECD approach" to the attribution of profits to a permanent establishment (PE) under the business profits article of the OECD Model Tax Convention on Income and Capital has failed to produce uniformity given the persistence of the alternative relevant business activity approach. Through the analysis of a hypothetical case study involving asset dealings between a foreign PE and the enterprise head office, this article examines the interaction of the domestic law and treaty practice of two jurisdictions that are representative of different approaches to PE profit attribution, the UK and Australia. This study of intra-enterprise dealings involving inventory, depreciating assets and capital assets reveals the potential for mismatches in taxation outcomes, both overlaps and gaps, even in relation to these relatively straightforward transactions.

Download or read book The Taxation of Permanent Establishments written by Sven Hentschel and published by Springer Nature. This book was released on 2021-06-26 with total page 521 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book provides a comprehensive analysis of the rules governing the taxation of permanent establishments as implemented in the OECD Model Tax Convention and German national tax law. Deviations between the OECD approach and the German approach are identified and modifications to the rules as a result of the Base Erosion and Profit Shifting (BEPS) project are examined. Moreover, challenges imposed to the PE concept as a result of the digitalisation of the economy are identified and discussed. Against this background, the Pillar One Blueprint proposing a long-term solution to overcome the tax challenges arising from the digitalisation of the economy is presented and assessed against widely accepted overarching principles of tax policy.

Download or read book Cross Border Taxation of Permanent Establishments written by Andreas Waltrich and published by Kluwer Law International B.V.. This book was released on 2016-04-20 with total page 362 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 defi¬nition and the allocation of profi¬ts 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 work illustrates and compares the OECD Model Tax Convention with country-specifi¬c source taxation rules, focusing on possible tax system changes and offering reform proposals. Emphasizing the taxable implications of the various rules upon country-speci¬fic PE concepts, the author’s treatment covers such issues and topics as the following: – the PE de¬finition of the OECD MC and from the perspective of selected countries; – allocation of business pro¬fits 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 Profi¬t Shifting (BEPS). The author uses simulated cross-border national and treaty cases to highlight qualifi¬cation conflicts, thus reinforcing his detailed discussion of source taxation rules of business profi¬ts 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. The author’s deeply informed proposals provide much-needed guiding tax criteria and open the way to greater feasibility and transparency in PE taxation. Because the defi¬nition of PEs has enlarged and the treatment of profi¬t allocation has become more complex, the clari¬fication of the PE concept presented in this book is of inestimable importance for lawyers, of¬ficials, policymakers, and academics concerned with international business taxation in any jurisdiction.

Download or read book Attribution of Profits to Agency Permanent Establishments a Reconsideration of the Arm s Lenght i e Length Criterion written by D.J. Jiménez-Valladolid de L'Hotellerie-Fallois and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: According to the OECD report on the attribution of profits to permanent establishments (PEs), the attribution must be based on the so-called "authorized approach", which implies the analogous application of the OECD Transfer Pricing Guidelines to the transactions between head office and PE. However, in the case of the agency PE, the application of the Guidelines is complicated. This article proposes several alternative methods to attribute profits to agency PEs.

Download or read book Attribution of Profits to Permanent Establishments Part 1 written by and published by . This book was released on 2011 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: QUESTIONS: I. Issue One: Do the Revenue Authorities of your country agree with the Authorised OECD Approach for profit attribution to permanent establishments (PEs) or do they attribute profits to PEs on some global formulary or profit split approach, regardless of the functional, asset and risk profiles of the PEs? II. Issue Two: Do the Revenue Authorities of your country treat a subsidiary of a foreign company, operating as a captive service provider, say providing services of contract software development; back office; contract or toll manufacturing, etc., on a cost plus basis, as "fixed place of business PE" of the foreign company, solely on the ground that the premises of such subsidiary is at the disposal of the foreign company? III. Issue Three: If the answer to Issue Two is in the affirmative, how would the Revenue Authorities of your country attribute profits to such PE under any one or both of the following situations: a. None of the employees of the foreign company were present in your country for any considerable period of time; b. Some of the employees of the foreign company were present in your country for a considerable period of time? IV. Issue Four: Do the Revenue Authorities of your country take into account the concept of "significant people functions" in the context of "dependent agency PEs", for the purposes of attributing profits to such PEs in excess of the remunerations received by the local agents, which create such "dependent agency PEs"? V. Issue Five: Do the Revenue Authorities of your country accept the method of "Berry Ratio" for the purposes of attributing profits to "dependent agency PEs", in situations where imputed remuneration based on value of goods, say return on sales, produce extremely high results of return on operating costs, primarily due to significantly high value of goods, as compared to low levels of operating costs?

Download or read book Attribution of Profits to a Permanent Establishment written by R. Rawal and published by . This book was released on 2019 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Indian government has recently released a discussion draft report on Attribution of Profits to PE. The report is of significant importance and represents an important development in international taxation. It takes into consideration the approach of the OECD, European Union and United States on attribution of profits and recommends changes to the Indian domestic law.

Download or read book Profit Attribution to Permanent Establishments a Tax Treaty Perspective on the single Taxpayer Approach written by S.B. Law and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: In this article, the author provides a tax treaty perspective on the OECD's Additional Guidance on the Attribution of Profits to Permanent Establishments, Action 7 - 2017 Public Discussion Draft, observing that countries which continue to follow article 7 of the pre-2010 OECD Model and the current UN Model would likely not accept the "single taxpayer" approach of attributing zero or minimal profits to a permanent establishment.

Download or read book US Tax Policy and Attribution of Profits to Permanent Establishments written by Robert Stack and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Article 7 of the OECD Model concerns the attribution of profits to permanent establishments. The OECD Commentary on Article 7 has long observed that article 7 incorporates the arm's length standard, yet how the arm's length standard is taken into account for purposes of article 7 has historically generated a great deal of debate. To some extent, the adoption of the Authorised OECD Approach (AOA) in 2010 went a long way towards providing an analytic framework and settling that debate - but not all the way, and certainly not with respect to US treaties. This article examines in detail how the US Treasury, through the technical explanations of US treaties and in litigated cases, has articulated its understanding of how to attribute profits to permanent establishments in non-AOA treaties, and how those explanations can be reconciled with the view also expressed by the US Treasury in those same technical explanations that article 7 embodies the arm's length standard.Full-text Paper.

Download or read book OECD G20 Base Erosion and Profit Shifting Project Tax Challenges Arising from Digitalisation Interim Report 2018 Inclusive Framework on BEPS written by OECD and published by OECD Publishing. This book was released on 2018-03-16 with total page 218 pages. Available in PDF, EPUB and Kindle. Book excerpt: This interim report of the OECD/G20 Inclusive Framework on BEPS is a follow-up to the work delivered in 2015 under Action 1 of the BEPS Project on addressing the tax challenges of the digital economy.

Download or read book Attribution of Profits to Permanent Establishments Should the AOA be Maintained as the OECD Standard written by C.A. Theophilou and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Globalization has led to enterprises doing cross-border business operating through foreign permanent establishments. However, the allocation of profits to such permanent establishments has always been problematic. This article analyses the authorized OECD approach as compared with the previous method of calculating the profit attributions to permanent establishments and thereby addresses the question of whether the authorized OECD approach should be maintained as an OECD standard.

Download or read book ATTRIBUTION of Profits to Permanent Establishments written by and published by . This book was released on 2001 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book OECD Guidance Doesn t Resolve Fundamental Issue for Attribution of Profits to Permanent Establishment written by R.B. Stack and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The OECD's recent guidance on how to attribute profits to a permanent establishment (PE) leaves unresolved a critical question for multinational companies worldwide - how to harmonize the application of articles 7 and 9 of the OECD's Model Tax Convention (MTC) to a multinational group's legal structure. The OECD on 22 March 2018 released additional guidance on the attribution of profits to a PE under Action 7 of the base erosion and profit shifting (BEPS) project. This latest guidance was preceded by two discussion drafts, one issued in July 2016 and the other in June 2017. The 2018 guidance sets out high-level general principles in light of the comments received on the earlier drafts, but doesn't address the most challenging issue - rationalizing the application of articles 7 and 9 to the same legal structure. Article 7 - the business profits article - outlines the profit attribution rules for PEs, and article 9 - the associated enterprises article - incorporates the arm's-length standard, the bedrock principle of transfer pricing. Without affirmatively reaching consensus that the article 9 analysis precedes the article 7 analysis (or vice versa), and without harmonizing the significant people functions (SPF) analysis under article 7 with the risk control framework under article 9, Working Party No. 6 in the 22 March guidance leaves unresolved the fundamental issue that the working party set out to address post-BEPS.