PE in Germany

If you don’t found a company in Germany but do business in Germany it is only a question of time that the Financial Authorities will check if you have a PE in Germany (Permanent Establishment). Background is that in case of a PE you will have to tax the German profit in Germany. The problem usually is that you already paid taxes for the German profit in your homecountry, so you risk to get taxed twice. Therefore, I always recommend in case of doubt that a real company is founded in Germany.