Convergență sau divergență: evoluția conceptelor de „sediu fix” și „sediu permanent”
Convergence or divergence: the evolution of the „fixed establisment” and the „permanent establishment” concepts

Summary/Abstract: The concepts of „fixed establishment” and „permanent establishment” have many similarities, being considered and analyzed only in case of cross‑border or international transactions. Although they serve the same final purpose, namely to determine whether the tax is to be paid in the State where the company’s operations are carried out, these two concepts are not synonyms. Until a theoretical distinction between the concept of fixed establishment and the permanent establishment shall be achieved, from a practical point of view, the evolution in terms of certain aspects seems to be in the same direction. Although we were expecting the first tax audits to target the corporate income tax part and, specifically, the creation of a permanent establishment, both in Romania as well as in the other Eastern European countries, there seems to be a greater interest of the authorities to determine the existence of a fixed establishment taking into account the recent aggressive approaches that lead either to obtaining higher amount for the State budget than those collected as a result of the existence of a permanent establishment or with complaints and prosecutions in this extremely complex area.

• Details
• Contents