In the binding consultation V3549-20, of 12/11/20, the Spanish Tax Authorities consider that the existence of a Spanish subsidiary does not automatically make it a permanent establishment of the German parent company for CIT purposes, and that the fact that the activity of said subsidiary being directed by the parent company is not enough for the former to be considered as a permanent establishment of the latter.

And the starting point of this criterion is that the interpretation of the Tax Treaty signed between Spain and Germany should not be made in response to the comments of the current version of the 2017 OECD Model Agreement, but rather to the Comments of the version of 2014 of the MCOCDE, while the Agreement is based on the wording of said Model.