Earlier on this year, the OECD published a discussion draft that includes proposals for changes to the OECD Model Tax Convention concerning the treaty residence of pension funds. The discussion draft, that follows the final report of BEPS Action Plan Number 6, on the granting of treaty benefits in inappropriate circumstances, includes draft changes to Articles 3 and 4 of the OECD Model Tax Convention, and to the Commentary on these Articles, that aim at ensuring that a pension fund is considered to be a resident of the State in which it is constituted for the purposes of tax treaties.
The draft and comments received will be discussed during a meeting of the OECD Working Party 1 to be held in May.
