Examples IT-employee
Examples IT-employee working for group-company in AT Home-Office auxiliary activity acc. to Art 5 para. 4 OECD-MA activity is rendered for the whole group PE establishment in Austria tax obligations of the foreign employer IT-employee working for a German company in the AT Home- Office - auxiliary activity acc. to Art 5 para. 4 OECD-MA - No PE in Austria tax obligations in the employer state Germany IT manager works in AT home office generally not an auxiliary activity within the meaning of Art. 5 para. 4 OECD- MA Permanent establishment in Austria at the home office location is triggered Declaration and tax obligations of the foreign employer in Austria C r o s s - b o r d e r c o m m u t e r - T h e r i s k o f p e r m a n e n t e s t a b l i s h m e n t , S e p t e m b e r 5 , 2 022 COPYRIGHT © CONVINUS 6
PE avoidance • Preparatory and auxiliary activities (acc. to Art. 5 para. 4 OECD-MA) do not trigger any PE • List of exceptions (may not represent the core activity of the company) • Storage, display and delivery of goods, not orders, repairs and sales closure • Stocks of goods exclusively for storage, display and delivery • Stocks for processing and treatment • Purchasing and information procurement exclusively for the company e.g. correspondence office, market research • Other auxiliary activities, e.g. advertising, information, research, representative and liaison offices, • Combination of different auxiliary activities Exception: according to the legal opinion of the Austrian Ministry of Finance PE establishment cannot be avoided when auxiliary or preparatory activities for the whole group are performed C r o s s - b o r d e r c o m m u t e r - T h e r i s k o f p e r m a n e n t e s t a b l i s h m e n t , S e p t e m b e r 5 , 2 022 COPYRIGHT © CONVINUS 7
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