On 22 September 2022, the Court of Justice of the European Union (CJEU) rendered its judgement in the case C-538/20 (W AG) finding that Germany does not infringe the freedom of establishment by not allowing the deduction of final losses which a German company had incurred in its permanent establishment (PE) situated in the UK because Germany as the state of residence has waived its power to tax the profits (and losses) of that PE under a double tax treaty.
Read more in our PwC EU Direct Tax Group newsalert.