The UK has deposited its instrument of ratification for the ‘Multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting’ (MLI) with the OECD. The MLI will enter into force for the UK on 1 October. Nine jurisdictions have now ratified the instrument.
For the five jurisdictions which ratified the instrument before the end of March (Austria, Isle of Man, Jersey, Poland and Slovenia), the convention entered into force on 1 July 2018. For those which ratified the instrument in June (Serbia, Sweden, New Zealand and the UK), the convention will enter into force on 1 October.
Also during June, Estonia, Kazakhstan, Peru and the UAE signed the MLI, bringing to 82 the number of signatories.
The MLI allows governments to modify their bilateral tax treaties by transposing results from the OECD/G20 BEPS project. It also implements agreed minimum standards to counter treaty abuse and improve dispute resolution mechanisms, while providing flexibility to accommodate specific tax treaty policies.
The UK has deposited its instrument of ratification for the ‘Multilateral convention to implement tax treaty related measures to prevent base erosion and profit shifting’ (MLI) with the OECD. The MLI will enter into force for the UK on 1 October. Nine jurisdictions have now ratified the instrument.
For the five jurisdictions which ratified the instrument before the end of March (Austria, Isle of Man, Jersey, Poland and Slovenia), the convention entered into force on 1 July 2018. For those which ratified the instrument in June (Serbia, Sweden, New Zealand and the UK), the convention will enter into force on 1 October.
Also during June, Estonia, Kazakhstan, Peru and the UAE signed the MLI, bringing to 82 the number of signatories.
The MLI allows governments to modify their bilateral tax treaties by transposing results from the OECD/G20 BEPS project. It also implements agreed minimum standards to counter treaty abuse and improve dispute resolution mechanisms, while providing flexibility to accommodate specific tax treaty policies.
