Clifford Chance
BEPS Action 7 – what do the OECD's new permanent establishment proposals mean for business?
18 May 2015
For almost a hundred years, OECD member countries have accepted that a non-resident's business will only become subject to tax in certain narrow circumstances. This has been widely criticised in recent years by the media and politicians – and it may now be changing.
In a revised discussion draft published on Friday, as part of its "BEPS" Project, the OECD are proposing that mere negotiation should create a taxable permanent establishment. This has wide implications for cross-border trade and business.
We look at the practical impact of the proposals on key industries and sectors and ask what steps businesses should be taking to anticipate these changes.
