The OECD has announced the entry into force of its Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the "Convention") effective from 1 July 2018. This follows from the deposit of the fifth instrument of ratification by Slovenia today 22 March 2018.
Before now, 4 countries - the Republic of Austria (22 September 2017), the Isle of Man (19 October 2017), Jersey (15 December 2017), and Poland (23 January 2018) had ratified the Convention but was still short of the ratification by a minimum of 5 countries required to enter into force.
The Convention, negotiated by more than 100 countries and jurisdictions under a mandate from G20 Finance Ministers and Central Bank Governors, will modify existing bilateral tax treaties to swiftly implement the tax treaty measures developed in the course of the OECD/G20 BEPS Project. Treaty measures that are included in the Convention include those on hybrid mismatch arrangements, treaty abuse and permanent establishment.
Read more here: Multilateral Instrument (MLI) ready for implementation
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