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The present article analyzes the most common problems related to the Permanent Establishment (PE) concept in International Tax in current modern economy, after the booming of e-commerce, the consolidation of the globalization process, and the new attempts to update and improve such concept in double tax treaties. For that purpose, this article addresses the structure of Article 5 of the OECD Model Tax Convention and gives readers an overview of the concepts, definitions, and problems arising from each of the Article 5 paragraphs of such Model Convention. After such overview, it examines the hottest topics in today‟s international economy that are creating new PE problems, like e-commerce, attribution of profits under new Transfer Pricing methods, and the Service PE rule. Lastly, it analyzes the recent OECD discussion draft on interpretation and application of Article 5 of the OECD Model Convention and its developments to current problems. It concludes with reference to the most known issues on each PE topic, and an opinion on what should be improved in each sub-area of the Permanent Establishment article in tax treaties.

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