The PCT’s Toolkit on Tax Treaty Negotiations is an effort to provide capacity-building support to developing countries on tax treaty negotiations, building on existing guidance, particularly from the UN Manual for the Negotiation of Bilateral Tax Treaties between Developed and Developing Countries.
Explained: The PCT’s Toolkit on Tax Treaty Negotiations for Developing Countries
New
Delhi (ABC Live India): The
Platform for Collaboration on Tax (PCT) a joint initiative of the IMF, OECD,
UN, and World Bank Group released the final version of the Toolkit on Tax
Treaty Negotiations along with its web-based, interactive edition.
The PCT’s Toolkit on Tax Treaty Negotiations is
an effort to provide capacity-building support to developing countries on tax
treaty negotiations, building on existing guidance, particularly from the UN
Manual for the Negotiation of Bilateral Tax Treaties between Developed and
Developing Countries.
The toolkit describes the steps involved in tax treaty
negotiations, such as how to decide whether a comprehensive tax treaty is
necessary, how to prepare for and conduct negotiations, and what follow-up
measures to take after negotiations.
Treaty negotiating teams, especially those new to the process,
can also find practical tips on the conduct of negotiations and negotiation
styles. Additionally, the toolkit collates links to publicly available
resources that treaty negotiators will find useful, making them easily
accessible.
The design of the toolkit allows regular updates and
improvements based on the feedback from users and experienced negotiators.
This is the fifth toolkit published by the
PCT, a collective effort of the PCT Partners to help countries address
challenges in international taxation. The final version of the toolkit takes
into account extensive comments received from countries and stakeholders during
the public consultation process in June–September 2020.
In addition to written comments, public consultation webinars,
which were held in English, French, and Spanish in November and December 2020,
gathered further feedback from diverse stakeholders, particularly treaty
negotiation teams.
Following the release, the Toolkit on Tax
Treaty Negotiations, including its full web-based version, will be launched
at a three-day workshop on March 11, 12, and
15, 2021.
The virtual workshop will feature expert speakers and
experienced negotiators, who will discuss some of the substantive issues
addressed in the toolkit, such as designing a tax treaty policy framework and
the steps involved in the preparation for, conduct of, and follow-up after
negotiations.
French and Spanish versions of the Toolkit
will be available in the coming days. For more information, please visit: tax-platform.org