Article 5 of the OECD Model Convention (MC) includes the definition of the treaty concept of permanent establishment which is primarily used for the purpose of allocating taxing rights when an enterprise of one state derives business profits from another state. Despite the long history of the concept of permanent establishments, its practical application raises a number of issues. The Committee on Fiscal Affairs, through a subgroup of its Working Party 1 on Tax Conventions and Related Questions, has examined various issues related to the interpretation and application of that definition and on October 12^th, 2011, released a public discussion draft including proposals for additions and changes to the update of the Commentary on Article 5 of the OECD MC. Given the practical importance of these proposals, Stefan Bendlinger summarizes the proposed changes of paragraphs 1 to 35 of the Commentary on Art. 5 OECD MC to be introduced into the forthcoming update of the Commentary.