Corporate Income Tax 2013 (I). Range of amendments. Permanent Establishments

Abstract

The instant collaboration examines the taxation of revenues obtained by non-resident taxpayers by way of a permanent establishment, after the amendments introduced by Law 16/2013. The main change refers to losses which will not be included in the CIT taxable base as they are accrued but until the moment of either transmission or liquidation of the Permanent Establishment; moreover, the aforesaid losses will be credited against the profits, which will still be exempt.

These amendments bring cause in the spirit of BEPS program. However, this is not a substantial reform, as it does not imply the total denial of losses arising from permanent establishments.

After all, and even though the new provisions might have a discriminatory impact on EU law, they are deemed to be justified by the arguments put forward by the Court of Justice of the European Union.