Tagungsband der 3. Jahrestagung des Young IFA Network 2019

F. The Place of Management – How Can Tax Law Deal with the Modern Business World?

I. Introduction

The place of management is an important criterion for international tax law. Whether or not a company has its place of business in a certain jurisdiction is key for major tax questions such as unlimited or limited tax liability (under national law and under many double taxation agreements (DTAs)), the right to levy withholding taxes on dividends and a vast range of compliance obligations.

In the past, when corporations had simple structures and permanent offices, where corporate decisions were taken by the chief officers, it was fairly easy to determine the place of management, whereas in a modern business world, this task becomes more and more difficult. This is due to the internationalisation of many companies, complex organisational structures and modern technologies allowing chief officers to interact with their peers and take decisions anywhere in the world.

1. The relevance of the place of management in international tax law

The place of management is key to a number of issues in many jurisdictions, inter alia in Germany. ...