Permanent Establishment in the time of COVID-19: a concept to revise?

Abstract

The advent of the pandemic from Sars CoV-2 (COVID-19) in the global scenario has produced profound and diversified effects not only from the health point of view. Restrictions on the free movement of persons, trade and business management, the adoption of urgent fiscal policy measures by States, represent a clear example of the impact of COVID-19 at global level. In this regard, on 21 January 2021, the OECD issued specific "Guidance" aimed at overcoming the concerns of certain Tax Administrations, warning that the recommendations adopted therein should be interpreted as provisional. This work aims, in particular, at deepening the effect of the pandemic on the legal concept of “Permanent Establishment”, as it was conceived and accepted in the international tax treaties until the publication of the OECD Guidance and at verifying whether, in the light of the experience gained, such a concept deserves a revision.