EYPE Watch | Latest developments and trends, May 2024
|Tax Alerts, Legislation & Policy, Na ...|France, Saudi Arabia, Uganda
PE case law
French Court rules against deducting foreign PE losses
On 26 April 2024, the French Supreme Administrative Court (Conseil d'Etat) issued decision No. 466062, addressing whether European Union (EU) law allows resident companies to deduct final losses of a Permanent Establishment (PE) located in another EU Member State from their taxable profits in France.
In this case, a French company set up a PE in Luxembourg for a construction project. Following the closure of the PE, the company soug…