The Organization for Economic Cooperation and Development launched a consultation Monday to update its model tax treaty commentaries.
The commentaries sit alongside the model treaty and suggest how countries should interpret and apply treaties.
- Among the proposed updates are new wording in sections covering interest deductibility, dispute resolution and business profits.
- The changes are linked to February guidance the OECD published on transfer pricing for financial transactions. That guidance outlined the organization’s position on how intra-company financial transactions prices should be treated for tax purposes.
- The consultation period runs until May 28.