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August 1, 2023

Thursday, August 31 | BorderCrossings ... With EY transfer pricing and tax professionals (1 pm ET)

Part 2: Profit attribution to permanent establishments: how do transfer pricing principles apply?

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?

We hope you will be able to join us for this important webcast.

Date: Thursday, August 31, 2023

Time: 1:00-2:15 p.m. ET New York/Toronto; 10:00-11:15 a.m. PT Los Angeles/Vancouver

Registration: View archive here.


Mike McDonald, Managing Director, International Tax and Transaction Services — Transfer Pricing, Ernst & Young LLP

Brett Cagliuso, Partner, International Tax and Transaction Services — Transfer Pricing, Ernst & Young LLP

CPE credit offered: 1.4. Recommended field of study: Taxes. Learning objectives: Analyze the interaction of US domestic law rules and treaty rules as they apply to permanent establishments. Describe the history of Article 7 interpretation, including the AOA to profit attribution. Final CPE award to be based on content, polling and length of participation. See CPE FAQ for more information.

EY webcast managed and produced by Ernst & Young LLP's Tax Technical Knowledge Services Group, Washington, DC: Lynn Fairfax | and Andrea Ben-Yosef |

Learn about and register for EY Tax webcasts

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