OECD Model Tax Convention: revised discussion drafts on the definitions of “permanent establishment” and “beneficial owner”

On 12 October 2011, the OECD released a discussion draft on the Interpretation and Application of Article 5 (Permanent Establishment) of the OECD Model Tax Convention.

This revised version of the discussion draft was prepared on the basis of the discussion of the comments that were received on the October 2011 discussion draft, including the discussion at a public consultation meeting held on 7 September 2012. It includes a number of changes (which are underlined in the revised draft) that were made to the proposals included in the October 2011 discussion draft.

The CFA intends to ask Working Party 1 on Tax Conventions and Related Questions to finalise these proposals for inclusion in the next update to the OECD Model Tax Convention, which is currently scheduled for 2014.

It therefore invites interested parties to send their comments on this discussion draft before 31 January 2013.

Also the OECD Committee on Fiscal Affairs (CFA) invites public comments on meaning of “beneficial owner” in Articles 10, 11 and 12 of the OECD Model Tax Conventionbefore 15 December 2012.

On 29 April 2011, the OECD released a public discussion draft entitled Clarification of the meaning of “beneficial owner” in the OECD Model Tax Convention.