EY | 1.4 CPE | BorderCrossings … with EY transfer pricing and tax professionals
This webcast, the second in a two-part series, examines the difficulty in applying transfer pricing rules to attribute profits to permanent establishments considering both US and international tax treaties. Under US tax treaties, Article 7 governs profit attribution to permanent establishments and references the arm’s-length principle under Article 9. In response to a lack of clear and consistent interpretation of profit attribution under international tax treaties, the Organisation for Economic Co-operation and Development (OECD) developed the Authorized OECD Approach (AOA).
This webcast will discuss the following questions:
- How has Article 7 evolved over the decades?
- To what extent and how does the attribution of profits to permanent establishments under Article 7 apply insights from transfer pricing under the arm’s-length principle?
- Why was the AOA developed, and what role does it play today?
- How do Articles 7 and 9 differ from one another, and why do taxpayers often conflate the two?