Insurers, Private Bankers: Will Beps Affect Your Permanent Establishment Risk?

Financial sector professionals learned long ago that Luxembourg's key geographic position offers a great place for growth. Life insurance and private banking industries have drawn on the Grand Duchy's local expertise and multilingual capabilities in selling their products and services across the EU. In other words, operating in foreign markets via persons, called agents, intermediaries or commissionaires, has become the norm.

Until now, it has generally been supposed that, in the light of the existing tax treaties, such agents, intermediaries, and commissionaires do not constitute permanent establishments (PEs) of Luxembourg entities in the eyes of the relevant foreign countries.