Close
An analysis by Flick Gocke Schaumberg, Taxand Germany
German tax courts recently addressed a dispute over permanent establishments, focusing on a foreign company with a domestic property managed by a German service company.
The courts determined that the client did not have a fixed place of business in the rented property but recognised a domestic management permanent establishment based on the location of day-to-day business transactions. It is argued that the decision underscores the importance of robust documentation for foreign real estate companies and those using specific structures, emphasising the rarity of assuming a (management) permanent establishment on someone else’s premises.
In this article, Yannick Barbu from Flick Gocke Schaumberg analyses the details and implications of the dispute.
Read the full article here.
For similar content to our Global Guide, subscribe to our mailing list and keep up to date.
