OECD COMMENTARY Sample Clauses
The OECD Commentary clause refers to the use of the Organisation for Economic Co-operation and Development's official commentary as an interpretive aid in understanding and applying provisions of tax treaties. In practice, this clause may specify that the parties will refer to the OECD Commentary when interpreting ambiguous terms or resolving disputes related to treaty provisions, ensuring that interpretations are consistent with international standards. Its core function is to promote uniformity and predictability in the application of tax treaties by aligning interpretations with widely accepted international guidance.
OECD COMMENTARY. Provisions of the Convention that correspond to provisions of the Organization for Economic Cooperation and Development (OECD) Model Tax Conven- tion on Income and on Capital generally shall be expected to have the same meaning as expressed in the OECD Commentary thereon. The United States understands, however, that the foregoing will not apply with respect to any reservations or observa- tions it enters to the OECD Model or its Commentary and that it may enter such a reservation or observation at any time.