This course is designed to provide participants with an in-depth analysis of the concept of permanent establishment (PE). Practical issues, such as allocation of profits and VAT aspects of PEs, will be covered. This will be combined with the use of case studies to ensure that participants leave the course with the confidence to apply what they have learned. Emphasis will be placed on a number of complex tax issues relating to PEs, such as non-discrimination, e-commerce, triangular cases and the problems surrounding agency PEs. The latest OECD developments and PE issues that can arise from business restructuring will also be examined.


This is an interactive course with a maximum of 30 participants. Prior to the course, participants will be given access to an documentation platform which provides them with additional pre-reading material and supplementary material (e.g. legal documentation, case law and related articles/literature). During the course, participants will be provided with a course binder containing documents relevant to the course.

Amsterdam, 12 – 15 March 2012
Day 1
08.30 - 09.00 Registration
09.00 - 09.20 Welcome and IBFD Overview
09.20 - 11.00 Permanent Establishment Concept
Basic Rule PE Concept in the OECD Model
Auxiliary and Preparatory Activities
Construction Site PE
Agency PE
Services PE
E-Commerce
PE Concept in the UN Model
Case Law Examples
11.00 - 11.20 Break – Refreshments
11.20 - 12.45 Permanent Establishment Concept (continued)
12.45 - 14.00 Lunch
14.00 - 15.00 Case Study
15.00 - 15.20 Break – Refreshments
15.20 - 17.00 Case Study (continued)

Day 2
09.00 - 10.40 Business Profits
Article 7 OECD Model
Force of Attraction and UN Model
Allocation of Assets and Profits:
- Global Methods
- Relevant Business Activity Approach
- Functionally Separate Entity Approach
Relevance of Functions Performed and Risks Undertaken
Financing a Permanent Establishment
Intra - Company Interest and Royalty Payments
Profits Allocation to Agency PE
Article 8 OECD Model
Case Law Examples
10.40 - 11.00 Break – Refreshments
11.00 - 12.45 Business Profits (continued)
12.45 - 14.00 Lunch
14.00 - 15.20 Case Studies
15.20 - 15.40 Break – Refreshments
15.40 - 17.00 Case Studies

Day 3
09.00 - 10.40 Permanent Establishments from an EU VAT Perspective
10.40 - 11.00 Break – Refreshments
11.00 - 12.45 Transfer Pricing and Permanent Establishments
Introduction The Arm’s Length Principle
The OECD Transfer Pricing Guidelines for Multinational Enterprises
Applying the Arm’s Length Principle
OECD Transfer Pricing Methods
Intra-Group/Intra-Company Services Example
12.45 - 14.00 Lunch
14.00 - 15.40 Business Restructuring and Permanent Establishments
Introduction to Business Restructuring
Business Restructuring and the Permanent Establishment Thresholds
Identification of PE Risks
Practical Examples
15.40 - 16.00 Break – Refreshments
16.00 - 17.00 Case Study

Day 4
09.00 - 11.00 Treaty and EU Non-Discrimination Principles relating to PEs
PEs Non-Discrimination in the OECD Model
Branch Profits Taxes
Double Tax Relief for PEs
Non Discrimination Principles in EU Law
ECJ Case Law on Non-Discrimination of PEs
11.00 - 11.20 Break – Refreshments
11.20 - 12.45 Triangular Cases
General Remarks
Dual Resident Cases
PE as Recipient of Income
PE as Source of Income
12.45 - 14.00 Lunch
14.00 - 15.00 Triangular Cases (continued)
15.00 - 15.20 Break – Refreshments
15.20 - 17.00 Case Study

Walter van der Corput, IBFD, the Netherlands
Bart Kosters, IBFD, the Netherlands
Shee Boon Law, IBFD, the Netherlands
Hans Pijl, Deloitte, the Netherlands
Emanuela Santoro, Fiat, Italy
Jan de Goede, IBFD, the Netherlands