Function and risk analysis of the business activity
1st step: function and risk analysis of the business activity of the
permanent establishment
– Determination of the (relevant) personnel functions are to be
attributed to the permanent establishment.
– On the basis of the (relevant) personnel functions, the assets,
the opportunities and risks, the dotation capital as well as
the remaining liabilities are to be attributed to the permanent
establishment.
– Business transactions of the enterprise with third parties and
with closely related persons within the meaning of § 1 (2)
AStG are to be attributed to the permanent establishment.
– Determination of the deemed contractual relationships
(“dealings”), maintained by the permanent establishment
with the rest of the enterprise.
Dealings are defined as eco-
nomic processes that either require a change in the attribution
of assets, opportunities and risks, or business transactions,
or that would be regulated by an agreement under the law of
obligations, assuming that the permanent establishment and
the rest of the company are legally independent, or lead to
the assertion of legal positions.
EU Forecast
euf:ba.18g:13/nws-01