Redefined the “Fixed Base” requirement.
07 MARCH 2025
In Ruling No. 2286/2025, the Supreme Court draws a groove between the notions of permanent establishment and fixed base (of the professional).
In detail, fixed base is expressly defined as “something less” than SO, deeming as sufficient for its qualification the carrying out of an activity on a continuous basis, although without the physical place of practice being at the full disposal of the professional on duty.
Otherwise, the permanent establishment qualifies as an entity connoted by the (physical) presence of equipment and personnel in the territory of the state of reference, as well as a certain degree of permanence there.
Differences in interpretation and implications in determining the center of interest
Thus, the connection relates almost exclusively with reference to the activity carried out not so much in a spatial as in a temporal sense, which configures a center of interest necessary for the performance of the activity related to the “continuous” presence/stay in the state.
Divergences from the OECD interpretative line are apparent, resulting in concrete risks of differing interpretations of the conventional norm.
This can only result in the need to analyze the individual cases more than fully.
Dr. Paolo Gelao
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