More than 60 countries sign OECD multilateral convention to counter base erosion and profit shifting

Overview

This week’s signing ceremony for the OECD Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS marks a new and important milestone in the international tax agenda to tackle perceived abusive techniques used by multinational enterprises to lower their global effective tax rate.

The Convention is the first multilateral treaty of its kind that allows jurisdictions to transpose results from the OECD/G20 BEPS Action Plan into their existing networks of bilateral tax treaties. This means that countries are able to implement a number of anti-avoidance rules into their network of tax treaties without having to renegotiate them one by one. Thanks to this, the impact of the Convention is likely to be far reaching.

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Banking and Finance – legalweeklaw

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