BEPS MLI to alter Luxembourg tax treaties as of August 1

Luxembourg today deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI).

The MLI will enter into force for Luxembourg on August 1.

Luxembourg also amended its reservations and notifications, which can be found at this link.

The MLI is a multilateral tax treaty designed to stop tax avoidance techniques used by multinational groups and to help speed cross-border tax dispute resolution.

It was developed to help countries to easily incorporate into existing bilateral tax treaties new provisions agreed to in 2015 as a result of the OECD/G20 base erosion profit shifting (BEPS) plan.