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A German GbR develops software with two partners, one resident in Spain and one in Germany, both exercising contracting power from their respective countries. The DGT concludes that the GbR is a rental attribution entity, not resident for Hispano-German tax treaty purposes due to German tax transparency, and that the German partner's activities in Spain constitute a permanent establishment. The entity is taxed as an IRNR contributor for the income attributable to the non-resident partner and must file an annual self-assessment.
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