Clarification on the Application of the Permanent Establishment Definition in E-commerce

20 April 2001
The Organization for Economic Co-operation and Development recently issued a clarification on its "Commentary on the OECD Model Tax Convention." The model, adopted by the Committee on Fiscal Affairs in December, concerns the application of the current definition of permanent establishment in the context of e-commerce. It follows two previous drafts that were released for comments by Working Party No. 1 in October 1999 and March 2000. Of special note are the OECD guidelines regarding e-commerce, server location and taxation as referred to in Curacao.

Click here to read the OECD clarification.

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