It is generally accepted that a physical permanent establishment is characterized by three components: (i) it has to be permanent (not temporary); (ii) it has to be fixed (geographic or territorial link to the ground); and (iii) it has to be at the disposal of the business undertaking which uses it to carry out its activities.
The purpose of this study is to analyse whether these three criteria are equally important for the qualification of a permanent establishment and whether, in the context of economic evolution over the last few years, of case law in the various countries that has analysed double tax treaties and of technological improvements, these criteria, in particular the territorial link, are still appropriate.
Intertax