OECD Public Consultation on Attribution of Profit to Permanent Establishments


11 October 2016
Hosted By: OECD

NERA Principal Guillaume Madelpuech has been invited to speak on behalf of NERA at the OECD Public Consultation on the attribution of Profit to Permanent Establishments, on October 11, 2016. Mr Madelpuech discussed in particular Example 4 in the Discussion Draft, from the perspective of the possible difference of allocation in risk, under article 9 and article 7, for Dependent Agent Permanent Establishments (“DAPEs”).

Mr Madelpuech examines in a first step, the limits in the Discussion Draft’s approach. In a second step, he discusses the broader limits of the Dependent Agent Permanent Establishment concept, from a profit attribution perspective in particular. He concludes on a position which echoes the Single Taxpayer approach which contends that the payment of an arm‘s length reward to the Dependent Agent Enterprise fully extinguishes the profits attributable to a Dependent Agent Permanent Establishments, thanks in particular to the progress brought to the application of the arm’s length principle by the BEPS Action 8-10.

To view a video recording of Mr Madelpuech's remarks, click here.

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