Denmark Tax Agency Clarifies PE Rules for Construction Under DTA With Germany

The Danish Customs and Tax Administration March 10 posted online Tax Council Binding Answer No. SKM2026.133.SR, clarifying permanent establishment (PE) rules for construction under the 1995 DTA with Germany. The taxpayer, a German company, managed, and supplied components for, a plant construction in Denmark. The taxpayer inquired whether it had a PE in Denmark under the DTA. Upon review, the Tax Council found that: 1) the taxpayer’s contractual obligations included building, construction, or assembly work under the DTA’s PE article; 2) the contract was based on the taxpayer’s previous engineering project with the client, the taxpayer was responsible for supplying ...