Sdělení k aktualizaci OECD vzorové smlouvy o zamezení dvojímu zdanění

At the end of last year, the update of the OECD Model Tax Convention and its accompanying commentary was published. The Ministry of Finance (MF) has issued a communication on this.

The communication briefly summarizes the changes resulting from this update, including:

• Adjustment of the text of the convention in the context of the relationship between double taxation agreements and GATS (General Agreement on Trade in Services).
• Addition of commentary regarding Article 5 (Permanent Establishment) related to the issue of home office. The MF refers to the related reservation of the Czech Republic and states, among other things, that it disagrees with the approach where entirely new criteria relevant only to a specific category of utilized spaces are introduced without support in Article 5 of the OECD Model Tax Convention. According to the MF, there is no reason why the category of utilized spaces should play such a fundamental and determining role in assessing the fulfillment of the conditions of Article 5(1) of the OECD Model Tax Convention. We have addressed this topic in more detail HERE.
• Changes in the commentary to Article 9 (Associated Enterprises) responding to the issue of transfer pricing in financial transactions.

The communication informs that an updated text of the OECD Model Tax Convention is expected to be published during 2026.

Author:

Karel Hronek