An Opportunistic, and yet Appropriate, Revision of the Source Threshold for the Twenty-First Century Tax Treaties Articles uri icon

publication date

  • January 2015

start page

  • 6

end page

  • 13


  • 1


  • 43

International Standard Serial Number (ISSN)

  • 0165-2826

Electronic International Standard Serial Number (EISSN)

  • 1875-8347


  • The present paper aims to delve into one of the most thrilling debates set out by the Base Erosion and Profit Shifting (BEPS) Project (specifically Action 1): the reconsideration of the permanent establishment threshold.Without disregarding the fiscal interests that have undeniably boosted the reopening of the discussion, we prefer to question the appropriateness of the PE from a different perspective. First, we will analyse the theoretical principles that originally served to justify the PE threshold. Subsequently, we will demonstrate the obsolescence of the term &- as it currently stands &- as a result of the challenges posed by the so-called digital economy and in light of the aforementioned principles. Some proposals for the way forward will be briefly outlined.


  • derecho financiero y tributario; tax