PE case lawLuxembourg Court confirms nonrecognition of Malaysian PEOn 17 April 2025, the Luxembourg High Administrative Court published case 50602C, upholding the Luxembourg Tax Administration's decision to deny the recognition of a Malaysian permanent establishment (PE) claimed by a Luxembourg-resident company (Lux Co). The key issues before the court were whether the Malaysian branch had sufficient economic substance to qualify as a PE under the Luxembourg-Malaysia tax treaty and whether certain interest-free shareholder loans should be recharacterized as hidden capital contributions.The case involved Lux Co's acquisition of shares in two companies, financed through interest-free loans from a related party. Company...