Specifcs of taxation of permanent establishments
Under German tax law, permanent establishments are any fxed
place of business or facility which serves the business of an en-
terprise (§ 12 AO – Tax Procedure Law).
In particular the place of
management, branches, offces, factories, and warehouses are
permanent establishments. Under German tax law, a permanent
representative (§ 13 AO) is similar to a permanent establishment
(§ 12 AO). A permanent representative does not need to be
an employee of the corporation. A permanent representative
within the meaning of § 13 AO conducts business on behalf of
a company on an ongoing basis and is subject to the company’s
instructions.
Germany’s right of taxation of a permanent establishment or
permanent representative maintained by a foreign resident in
Germany may be modifed by a tax treaty.
EU Forecast
euf:ba.18g:8/nws-01