The location independence and dematerialization characteristic of e-business largely render tax criteria that rely on physical attributes ineffective. A central role is played by the principle of permanent establishment, which determines the minimum threshold for taxation in the source country. This work comprehensively presents the current international discussion on the taxation of permanent establishments in the New Economy; in particular, it intensively explores the question of suitable alternatives—a problem that has unfortunately been deliberately overlooked by the OECD so far. Based on this, new approaches to localizing the place of management in virtual corporate structures are provided. The author offers his own proposals for adapting tax regulations to ensure a fair distribution of the international tax base in the medium to long term.