| Abstract [eng] |
The paper analyzes and examines the concept of a permanent establishment in the OECD Convention on Income and Capital Taxation and the Lithuanian tax system. It discusses the criteria for determining a permanent establishment and identifies related issues. The second part of the paper explores the BEPS initiative and its amendments concerning challenges arising from the digitalization and transformation of business models, which create opportunities to avoid the qualification and taxation of a permanent establishment. It provides a detailed analysis of BEPS Actions 1 and 7, which aim to prevent tax avoidance related to the determination of a permanent establishment. The third part discusses the criteria for qualifying a permanent establishment within the Lithuanian tax system. Furthermore, the evolution of the permanent establishment concept is examined by analyzing amendments to the Lithuanian Law on Corporate Profit Tax. At the end of the paper, a practical analysis is conducted to assess the compatibility of the definition of a permanent establishment as outlined in the OECD Convention on Income and Capital Taxation and the Lithuanian tax system. Additionally, Lithuania’s double taxation avoidance treaties are compared, highlighting similarities and differences. |
