Digital permanent establishment

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Digital permanent establishment is a term from international tax law. It is intended to record corporate sales and profits in a country in which a company does not have a permanent business establishment within the meaning of Section 12 AO , but generates sales through a significant digital presence, such as digital transactions with domestic customers. This activity indicates an intensive connection with a permanent establishment in another country and is intended to justify the taxation of these sales.

A classic permanent establishment such as a branch or an office is physically present and has a specific entrepreneurial activity that is also recorded for tax purposes. However, this concept is not suitable for mapping the digital economy properly, which specifically avoids this tax point of contact. In the case of a significant digital economic output, the tax authorities should therefore assume a digital permanent establishment, assign the turnover to it, calculate a tax payment from this and thus burden the physical permanent establishment (Art. 5, Paragraph 5, OECD-MA ). However, there are no simple legal regulations in the member states of the European Union .

The term digital permanent establishment serves to combat targeted tax avoidance strategies ( base erosion and profit shifting BEPS ) in internationally active companies.

literature

  • Matthias Mitterlehner: Profit shifting and tax avoidance in the digital economy . In: Tax and Economy International (SWI) . No. ? , 2016, p. 58–66 ( icon.at [PDF; accessed on February 5, 2020]).
  • Linda Ohling: Taxation of the digital economy. The permanent establishment concept according to §§ 12, 13 AO and Art. 5 OECD-MA in virtualized trading . 2016 ( uni-mainz.de [PDF; accessed on February 5, 2020] Johannes Gutenberg University Mainz , award-winning master's thesis).

Individual evidence

  1. ↑ Schelling plan to close the international tax evasion routes. European and international measures to avoid profit shifts and international tax fraud Federal Ministry of Finance , accessed on November 25, 2017
  2. ↑ OECD model convention for the avoidance of double taxation in the area of ​​taxes on income and capital as at: July 2014 (OECD-MA 2014)
  3. ↑ Werner Mussler: Digital companies: The road to Internet tax in Europe is far FAZ , September 21, 2017