The Platform for Collaboration on Tax (PCT) – a joint initiative of the IMF, OECD, UN and World Bank Group – is seeking feedback from the public on a draft toolkit designed to help developing countries build capacity in tax treaty negotiations. PCT’s Draft Toolkit on tax treaty negotiations is a joint 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 “UN Manual”).
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 who are 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 for treaty teams.
The design of the Toolkit allows regular updates and improvements based on the feedback from users and experienced negotiators. The PCT Secretariat is now seeking comments on the discussion draft of the Toolkit by September 10, 2020 from interested stakeholders.