Denmark Tax Agency Clarifies Permanent Establishment Rules for Nonresident Contractors Under DTA with Poland

The Danish Customs and Tax Administration Jan. 20 posted online City Court Decision No. SKM2026.40.BR, clarifying permanent establishment (PE) rules for nonresident contractors under the 2001 Denmark-Poland DTA. The taxpayer, a Polish sole proprietorship, carried out construction work in Denmark. The Tax Agency found that the taxpayer established a permanent establishment (PE) in the income years at issue and was, therefore, subject to limited tax liability in Denmark. On appeal, the City Court found that: 1) it’s sufficient to establish a PE under the DTA if a certain area is available for business activities; 2) the taxpayer’s business activities in ...