viernes, 20 de julio de 2012

New Resolution from the Spanish Central Tax Court determines existence of a PE in Spain

The Spanish Central Tax Court issued a resolution (dated 15 March, 2012) where it upholds that a Spanish entity belonging to an international group constitutes a permanent establishment of another Irish entity of the group under both the “fixed place of business” and the “dependent agent” clauses. The resolution is of special interest in the interpretation of the “fixed place of business” clause, as it follows the trend set by the recent decision from the Spanish Supreme Court, which upheld that a Spanish company that manufactured and promoted sales for a single non-Spanish resident entity, pursuant to comprehensive instructions from the latter, constituted a Spanish permanent establishment of the non-Spanish entity (see our Global Tax Desk Alert, Principal structure constitutes permanent establishment, Spanish Supreme Court rules, dated 2 March 2012 for additional information).
Source & more info: Ernst & Young

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