Historical analysis of the concept of permanent establishment in article 5 of the OECD Model Tax Convention

Abstract

This paper analyses the concept of permanent establishment in article 5 of the OECD Model Tax Convention. In order to conceptualize this legal notion, the author explains its origin and exposes its evolution until now from a historical perspective.

This paper analyses the origin of this legal concept and its typology according to the modalities reflected in article 5 MCOECD. However, it ultimately refers to MCOECD 2017 and exposes the amendments performed within the referred provision as a result of the measures proposed by the OECD’s BEPS Action Plan.

In line with the conceptualization and typology of this legal notion, it also exposes certain activities that do not constitute a permanent establishment according to the interpretation which is inferred from the diction of the precept.