Rethinking Permanent Establishments in an Era of Tax Transparency: A Comparative Approach

New
Journal
Author
Cotroneo, D.; Di Gialluca, A.; Rossi, M.M.; Bassani, M.
Country
European Union
Published Date
Issue
European Taxation 2026 (Volume 66), No. 7
FormatPDF
EUR
45
| USD
50 (VAT excl.)

In this article, the authors assess whether the permanent establishment concept remains appropriate in light of the 2025 Update to the Commentary on Article 5 of the OECD Model. A comparative study of Italy, the United Kingdom and Germany reveals that national systems are incorporating these developments unevenly: Italy balances the expansion of the PE concept with targeted exemptions; the United Kingdom is pursuing a comprehensive post-BEPS alignment; Germany is modernizing its PE definition, although its profit allocation framework has yet to keep pace. The authors advocate the adoption of a dedicated OECD soft law protocol linking social security mobility certification to a proportionate tax nexus assessment.