1 / 12

Recent Case Law on Permanent Establishments

Recent Case Law on Permanent Establishments. Germany: Finanzgericht München ( Munich Tax Court) File number 9 K 3041/15 Date of decision May 31, 2017. Recent Case Law on Permanent Establishments. Germany. Recent Case Law on Permanent Establishments. Germany

rarnold
Download Presentation

Recent Case Law on Permanent Establishments

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Recent Case Law on Permanent Establishments Germany: Finanzgericht München (MunichTax Court) File number 9 K 3041/15 Date ofdecision May 31, 2017 Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  2. Recent Case Law on Permanent Establishments Germany Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  3. Recent Case Law on Permanent Establishments Germany Activityfrom May 7 to Nov 10: workingasindependent IT consultantfor German corporation workplace at the German corporation´scustomer, a German bank (restrictedaccesstopremises, noofficeofhisown) Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  4. Recent Case Law on Permanent Establishments Germany Legal issuespart 1 Isthetaxpayersubjecttounlimitedincometaxliability? Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  5. Recent Case Law on Permanent Establishments Germany Legal backgroundpart 1 Sec 1 para 1 German Income Tax Act: Natural personswhohave a placeofresidenceortheirususalplaceofabode in thedomesticterritoryaresubjecttounlimitedincometaxliability. ... Sec 8 German Fiscal Code: Personsshallbe resident at theplace at whichtheymaintain a dwellingundercircumstancesfromwhichitmaybeinferredthatthey will maintainanduse such dwelling. Sec 9 German Fiscal Code: Personsshallhavetheirhabitualabode at theplace at whichtheyarepresentundercircumstancesindicatingthattheirstay at thatplaceor in thatareais not merelytemporary. An unbrokenstayof not lessthansixmonths´ durationshallbeinvariablyandfromthebeginningof such stayregardedas an habitualabode in theterritoryofapplicationofthis Code; briefinterruptionsshallbeexcepted. ... Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  6. Recent Case Law on Permanent Establishments Germany Legal issuespart 1 Isthetaxpayersubjecttounlimitedincometaxliability? Yes, he hadhisfiscalresidence in Germany (-> apartmentmeanttobeusedfortwoyears) He also hadhishabitualabode in Germany (unbrokenstay form May 7 to Nov 10) Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  7. Recent Case Law on Permanent Establishments Germany Legal issuespart 2/1 Does that mean that Germany can tax his income from the German corporation? Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  8. Recent Case Law on Permanent Establishments Germany Legal backgroundpart 2/1 Art. 4 German Uruguay Tax Treaty : ForthepurposeofthisConvention, theterm „resident of a Contracting State“ meansanypersonwho, underthelawsofthat State, isliabletotaxthereinbyreasonofhisdomicile, residence, placeofmanagement, placeofincorporation, oranyothercriterionof a similarnature, ... Wherebyreasonoftheprovisionofparagraph 1 an individual is a resident ofbothContracting States, thenhisstatusshallbedeterminedasfollows: a) he shallbedeemedtobe a resident ofthe State in which he has a permanent homeavailabletohim; if he has a permanent homeavailabletohim in both States, he shallbedeeemdtobe a resident ofthe State withwhichhis personal andeconomicralationsarecloser (centerof viral interests). ... Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  9. Recent Case Law on Permanent Establishments Germany Legal backgroundpart 2/2 Art. 7 para 1 German Uruguay Tax Treaty : The businessprofitsof an enterpriseof a Contracting State shallbetaxableonly in that State unlesstheenterprisecarries on business in theotherContracting State through a permantentestablishmentsituatedtherin. Iftheenterprisecarries on businessasaforesaid, thebusinessprofitsoftheenterprisemaybetaxed in theother State but only so muchofthemasisattributabletothat permanent establishment. Para 1 (c) ofthe Protocol ofthe German Uruguay Tax Treaty: Paymentsrecievedas a considerationfortechnicalservices, includingstudiesorsurveysof a scientific, geologicalortechnicalnature, orforengineeringcontractsincludingblueprintsrelatedthereto, orforconsultancyorsupervisoryservicesshallbedeemedtobepaymentstowhichtheprovisionsofArticle 7 oftheConventionapply. Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  10. Recent Case Law on Permanent Establishments Germany Legal issuespart 3 Doesthetaxpayer carry on hisbusiness in Germany through a permantentestablishment? If so, cantheprofitsfromtheactivity in Germany beattributedtosaid permanent establishment? Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  11. Recent Case Law on Permanent Establishments Germany Legal backgroundpart 3 Art. 5 para 1 German Uruguay Tax Treaty : ForthepurposesofthisConvention, theterm „permantentestablishment“ means a fixedplaceofbusinessthroughwhichthebusinessof an enterpriseiswhollyorpartlycarried on. Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

  12. Recent Case Law on Permanent Establishments Germany ? Prof. Dr. Susanne Tiedchen Finanzgericht Berlin-Brandenburg

More Related