Revised OECD Discussion Draft on permanent establishments published


On 15 May 2015, the OECD issued a revised discussion draft on preventing the artificial avoidance of permanent establishment (‘PE’) status under Action 7 of the BEPS action plan.

The proposals in this revised discussion draft (which the OECD calls the ‘new discussion draft’ or ‘second discussion draft’) were all included among the options that appeared in the October 2014 ‘first discussion draft’ on which extensive comments were submitted and over which a public consultation meeting was held on 21 January 2015.

Although this second discussion draft includes specific proposals rather than alternative options, these proposals do not, at this stage, represent the consensus view of the OECD’s Committee on Fiscal Affairs (‘CFA’) or its subsidiary bodies but are intended to provide stakeholders with substantive proposals for analysis and comments.

For that reason, no public consultation meeting will be held on the proposals included in this second discussion draft and it is requested that comments, which can be sent to by 12 June 2015, should be kept as short as possible.

More information with respect to the second Discussion Draft on Action 7 will be published shortly. The second discussion draft can be found here.