Bahrain has signed and Chile has deposited with the OECD its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI), the OECD reported on November 21.
Moreover, the OECD said that Indonesia and Russia made notifications under MLI Article 35(7)(a)(i) confirming completion of internal procedures for the entry into effect of the provisions of the MLI with respect to some treaties in accordance with Article 35(7)(b).
Kazakhstan also made notifications on its covered treaties under Article 29(6) of the MLI, the OECD reported.
The MLI was created by OECD and G20 countries as a result of the 2015 base erosion profit shifting (BEPS) plan. The multilateral tax treaty allows countries to swiftly amend their existing bilateral tax treaties to add provisions that aim to prevent tax avoidance by multilateral groups and improve cross-border tax dispute resolution procedures.
So far, 95 jurisdictions have signed the MLI, and 57 have ratified, accepted, or approved it.
As a result of Chile’s actions, the MLI will enter into force for Chile on March 1, 2021.
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