The Organisation for Economic Cooperation and Development (OECD) today announced that representatives of the governments of Kazakhstan, Peru, and the United Arab Emirates signed the base erosion and profit shifting (BEPS) multilateral convention (the multilateral instrument or MLI).
As noted in the OECD release, these actions bring the total number of signatories to 79 and the number of covered jurisdictions to 81.
The BEPS multilateral convention updates the existing network of bilateral tax treaties and is intended to reduce opportunities for tax avoidance by multinational enterprises. This is the first multilateral treaty of its kind, allowing jurisdictions to integrate results from the OECD/G20 BEPS project into their existing networks of bilateral tax treaties.
The entry into force of the convention scheduled for 1 July 2018 follows its ratification by five jurisdictions—Austria, the Isle of Man, Jersey, Poland, and Slovenia.
Serbia, Sweden, and New Zealand also deposited their instrument of ratification with the OECD, with the convention to enter into force on 1 October 2018.
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