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Spanish Tax Authority Holds Server Used for Financial Trading may Constitute PE for Irish Company

|Treaty Development|Spain-Ireland
Spain-Ireland

In a recently published ruling, Spain's General Directorate of Taxes found that a server located in Spain and used by an Irish company for financial trading purposes may constitute a permanent establishment. The ruling concerns an Irish consulting company engaged in electronic trading in international stock exchanges. With respect to its Spanish trading activity, the company intended to use a server located near a Spanish exchange in order to reduce latency in executing its trades. In the rul…

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