The first draft is in response to the final report on action 7, preventing the artificial avoidance of permanent establishment status.  It considers two situations where additional guidance is needed. These are dependent agent permanent establishments, including those created through commissionaire and similar arrangements; and warehouses as fixed place of business permanent establishments.

The second draft relates to work mandated under action 10 in relation to the application of transfer pricing methods. It aims to clarify and strengthen the guidance on the transactional profits split method in the context of global value chains. In particular, it elaborates on two different approaches to splitting profits: transactional profit splits of actual profits and transactional profit splits of anticipated profits. It also proposes further draft guidance on the appropriate application of transactional profit split methods.

The deadline for comments is 5 September. The OECD intends to hold a public consultation on these two discussion drafts on 11-12 October 2016 Paris, France. Registration details for the public consultation will be published on the OECD website in September. Speakers and other participants at the public consultation will be selected from among those providing timely written comments on the discussion draft.

Additional Guidance on the Attribution of Profits to Permanent Establishments is here.

Revised Guidance on Profit Splits is here.