Home Office and Senior Executives: Navigating Permanent Establishment and Transfer Pricing Risks

Key Points

• The article aims to analyze how updates to the OECD Commentary influence the assessment of home office permanent establishments for senior executives in Italy.
• Examined the 2025 update to the OECD Commentary on Article 5.
• Analyzed the interaction between the temporal threshold and the commercial reason test.
• Considered the implications of Italy’s inbound workers regime on transfer pricing.
• Identified key changes in the analysis of home office permanent establishments.
• Outlined potential transfer pricing consequences arising from the existence of a PE.
• Highlighted the importance of adapting to new guidelines for compliance in Italy.