A 3 March 2020 decision of the Spanish Supreme Court has been published concerning the interpretation and application of the permanent establishment (PE) provisions under the 1966 tax treaty with Switzerland.
The case involved a Spanish company that declared an exemption from tax on income derived through its PE in Switzerland during the tax years 2005 to 2008. The exemption was claimed in Spain because the income was taxable in Switzerland as it was considered derived through a PE in Switz…