KPMG report: Comments on proposed changes to Commentaries in OECD Model Tax Convention, Article 9 and related articles

KPMG tax professionals have responded to the OECD request for comments.

KPMG tax professionals have responded to the OECD request for comments.

The Organisation for Economic Cooperation and Development (OECD) in a 29 March 2021 consultation document described proposed changes to the Commentaries in the OECD Model Tax Convention with respect to Article 9 and related articles.

As noted in an OECD release (March 2021), Article 9 of the OECD Model Tax Convention deals with the tax treatment of transactions between associated enterprises or related parties. The OECD’s efforts to revise the Commentaries to the Model Tax Convention would be intended to reflect updates to the OECD Transfer Pricing Guidelines to supplement the Commentary on Article 9 by providing detailed guidance on the application of the arm’s length principle.

KPMG tax professionals have responded to the OECD request for comments. Read the KPMG comments (May 2021) [PDF 160 KB]

The OECD on 3 June 2021 released a compendium of comments. According to the OECD release, all comments received are in a large “zip file” [PDF 10 MB].

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.