The country where a fixed base is maintained has a right to tax income from professional services performed, but only so much of it as is attributable to that fixed base. According to German law, the partner of the domestic law firm who renders personal services for the group foreign office receives income from independent work. Thus, profits received by a partnership who participates in a lawyer partnership are covered by Art. 7 OECD-MC which deals with the taxation of enterprises. It is conceivable that employees, as well as partners, of the domestic office are assigned to the foreign office or a group foreign office.
Employees receive income for their dependent personal services.
In application of the OECD-MC, only Art. 15, which deals with dependent personal services, is applicable, insofar as the employee is not a resident in the country where the foreign office or the group foreign office is located.