Permanent Establishments as Treated by Swedish Tax Law: Compatibility with EC-law

Abstract: This thesis aims to give an overall presentation of the present Swedish legal situation of the permanent establishment, from the perspective of international tax law. The different definitions and regulations regarding treatment of permanent establishments will be examined to find if there is a need for amendments of Swedish national provisions. Fundamentals of Swedish tax law, EC-law and of the OECD Model Tax Convention will be presented, in order to make comparisons between the legal systems. Similarities and differences will be identified and form the basis for discussions on conflicts in between the legal systems. The authors find that regarding definitions of, and attribution of profits to permanent establishments, Sweden is far in line with the OECD and EC-law. The general domestic principles are, however unclear in some situations and an amendment of the domestic principles is most likely needed.