German Ministry of Finance Issues Updated PE Guidelines

Germany's Ministry of Finance has issued updated administrative guidelines on the concept and creation of permanent establishments (PEs) under domestic and international tax law. The guidelines apply for both resident and non-resident taxpayers and focus on cross-border tax matters. The guidelines explain that where a PE or permanent representative is a condition for taxation, the analysis must generally be carried out in two steps. First, it must be determined whether a PE exists under sect…