On December 8^th, 2006, Working Party No. 1 on Tax Conventions and Related Questions of the OECD Committee on Fiscal Affaires presented a public discussion draft on the tax treaty treatment of services, and proposes Commentary changes to the OECD Model Tax Convention on income and on capital with respect to the treatment of international service providers. Due to some OECD member states’ reluctance to adopt the principle of exlusive residence taxation of services that are not attributable to a permanent establishment situated on their territory, but that are performed on that territory, the Working Party proposes an alternative provision which such states could agree bilaterally to include in their tax treaties. As in practice the proposed changes will be relevant not only for tax treaties to be signed in the future but for existing tax treaties as well, Stefan Bendlinger comments the Working Party’s position on the tax treatment of services in bilateral tax treaties.