Article 9 of the OECD Model Tax Convention deals with the taxation of transactions between associated enterprises. Working Party 1 on Tax Conventions and Related Questions (which is the subgroup of the OECD Committee on Fiscal Affairs in charge of the Model Tax Convention), in consultation with Working Party 6 and the Forum on Tax Administration's MAP Forum, has recently undertaken work on the Commentary on Article 9 to clarify its application, especially as it relates to domestic laws on interest deductibility. This work is closely linked to the report Transfer Pricing Guidance on Financial Transactions published on 11 February 2020.
Proposed changes to Commentaries in the OECD Model Tax Convention on Article 9 and on related articles
- Submission period
- 29 March - 28 May 2021
Background
Project description
This public discussion draft (also available in French) includes proposals for changes to the Commentary on Article 9 and other related articles. The changes put forward in this discussion draft are expected to be included in the next update to the OECD Model Tax Convention.
How to contribute
The Committee invites interested parties to send their comments on this discussion draft before 28 May 2021. These comments will be examined at the following meeting of Working Party 1.
Comments on this discussion draft should be sent electronically (in Word format) by email to taxtreaties@oecd.org and may be addressed to:
Tax Treaties, Transfer Pricing and Financial Transactions Division
OECD/CTPA
Unless otherwise requested at the time of submission, comments submitted in response to this invitation will be posted on the OECD website. Comments submitted in the name of a collective "grouping" or "coalition", or by any person submitting comments on behalf of another person or group of persons, should identify all enterprises or individuals who are members of that collective group, or the person(s) on whose behalf the commentator(s) are acting.
This document is a discussion draft released for the purpose of inviting comments from interested parties. It does not necessarily reflect the final views of the OECD and its member countries.
Comments received
Published 3 June 2021
The OECD is grateful to commentators for their input and has now published the comments received.
Working Party 1 will consider these comments as it finalises its work in this area with the expectation that revised commentaries will be included in the next update of the OECD Model Convention.
- Download comments (Zip file, 10mb - Please open from a desktop computer)
Further information
Enquiries should be addressed to taxtreaties@oecd.org.
