68 Jurisdictions Sign BEPS Multilateral Instrument
68 countries have signed the OECD's Multilateral Convention, designed to swiftly implement a series of tax treaty-related measures proposed in the OECD's base erosion and profit shifting project into these countries' double tax agreements.
The signing ceremony for the Convention took place on June 7, 2017, in Paris. The multilateral instrument (MLI), developed by the OECD under Action 15 of the BEPS project, will transpose BEPS recommendations into over 1,100 tax treaties worldwide. The Convention will strengthen provisions to resolve treaty disputes, including through mandatory binding arbitration (which has been adopted by 25 signatories), to reduce double taxation and increase tax certainty for businesses.
Eight additional countries and jurisdictions have signed a letter expressing their intent to sign the Convention and additional countries and jurisdictions are actively working to prepare for signature in the near future. The position of each signatory under the Convention is now available on the OECD's website. The OECD said it will provide a database and additional tools on its website by the end of the year, to support taxpayers and tax administration with understanding and applying any potential changes.
The first modifications to bilateral tax treaties are expected to enter into effect in early 2018.