Change search
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf
Permanent Establishment: With respect to attribution of income and the question of documentation of internal dealings
Jönköping University, Jönköping International Business School, JIBS, Commercial Law.
2011 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

In 2008 the Committee of Fiscal Affairs of OECD published its report on profit attributable to a permanent establishment. In 2010 article 7 of the OECD model tax convention was reformed, and the report was revised to better conform to the article.

The authorised OECD approach is that a permanent establishment is a separate and independent entity, engaged in the same or similar activities under the same or similar conditions, taking into account the functions performed, assets used and risks assumed by the enterprise through the permanent establishment and through other parts of the enterprise. The approach is built on a two step analysis, the first is a functional and factual analysis and the second is determining the income of the permanent establishment. The authorised OECD approach is that the Transfer Pricing Guidelines should be applied by analogy in transactions between the permanent establishment and the rest of the enterprise.

The Swedish Income Tax Law has the view that the permanent establishment is a separate and independent entity. The Swedish approach is a two step analysis; the basis is the accountings of the enterprise adjusted for internal dealings, and the second step is a functional analysis. The Swedish law does not allow allocation of “free” capital to a permanent establishment, nor does it allow a permanent establishment to deduct royalty payments to other parts of the enterprise. The Swedish provision regarding documentation of transactions between enterprises with economic interest in each other does not apply to permanent establishments.

For reasons of certainty and predictability, the best thing would be for the legislator to reform the Swedish Income Tax Law. Seeing that a permanent establishment is obliged to have its own accounting, the burden and cost of obliging it to document internal dealings would not be that big.

Place, publisher, year, edition, pages
2011. , p. 36
Keyword [en]
Permanent Establishment, documentation of internal dealings
National Category
Law and Society
Identifiers
URN: urn:nbn:se:hj:diva-15886OAI: oai:DiVA.org:hj-15886DiVA, id: diva2:435611
Subject / course
IHH, Commercial Law
Uppsok
Social and Behavioural Science, Law
Supervisors
Examiners
Available from: 2011-09-16 Created: 2011-08-19 Last updated: 2011-09-16Bibliographically approved

Open Access in DiVA

Permanent Establishment(280 kB)1421 downloads
File information
File name FULLTEXT01.pdfFile size 280 kBChecksum SHA-512
6887a558218ac778e03e49000ed098ba6333f82225a0f07ff66e4a324d3041a811d7e9cc0e878b7225f24c5c9ea27bd2ddf444d7b18ad7ae2399b2fc59e5c8c6
Type fulltextMimetype application/pdf

By organisation
JIBS, Commercial Law
Law and Society

Search outside of DiVA

GoogleGoogle Scholar
Total: 1421 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

urn-nbn

Altmetric score

urn-nbn
Total: 647 hits
CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf