Tax 101 Series: Permanent Establishment, Tax Treaties, Double Tax Agreements

In the Christmas Tree Plantation Ruling: the Danish Tax Board concluded that foreign enterprise is deemed to have a fixed place permanent establishment even in absence of employees or dependent agents at the place of business in Denmark.

This session discusses the concept of PE and its interplay between domestic tax law, tax treaties and double tax agreements. Most of the time, many would think, the PE issues arising from a simple and straight forward transaction is low-risk". The "Christmas Tree Plantation Ruling" provides excellent insights into many exciting and intricate facets of (interpretation) PE. "Tax planning is all about long-term thinking (tax certainty)" – hence, an understanding of your fundamental tax rights (entitlements) will allow you to manage and mitigate your tax risk with confidence.

This session is a mix of practical experience and academic knowledge.

1. Introduction to the Singapore law of treaties & DTA
2. Meaning of PE: Fixed place of business v a fixed place PE
3. Mere 66-day activity in the Source State gives rise to PE?
4. Mere storage of construction material give rise to PE?
5. Exploratory case study – “the Christmas Tree Plantation Ruling”
6. Q&A