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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

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Recent Case Law on Permanent Establishments

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  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

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