Multilateral tax treaty to enter into force for Latvia

The OECD announced on October 29 that Latvia has deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (BEPS MLI).

The BEPS MLI will enter into force for Latvia on February 1, 2020, the OECD said.

The MLI is a multilateral tax treaty that is designed to swiftly incorporate provisions stemming from the OECD/G20 base erosion profit shifting (BEPS) plan. These provisions were agreed to by OECD and G20 nations in 2015.

The BEPS MLI provisions affect the taxation of multinational corporations and are designed to thwart tax avoidance and improve cross border tax dispute resolution.