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By Emilien LEBAS Valentine PLATEAU, KPMG Luxembourg *
On 12 March 2026, the Luxembourg administrative Court of Appeal (the “Administrative Court” or the “Court”) rendered two appeal decisions concerning whether a taxpayer’s US branch constituted a permanent establishment (“PE”) for FYs 2015-2018 under the Luxembourg-United States double tax treaty (the “Luxembourg-US DTT”) (Cour administrative, 12 Mars 2026, n° 53207C ; Cour administrative, 12 Mars 2026, n° 53208C). Given the similarity of the facts and the conclusions reached by the Court, this article will focus solely on decision n° 53207C.
The taxpayer set up a US branch in early 2014 to manage and administer intra-group financial assets. It entered into a services agreement with...
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