Panama has deposited its instrument of ratification for the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting ( MLI), the OECD today announced.
Thus, the MLI will enter into force for Panama on March 1.
The document will amend Panama’s existing, in-force, bilateral tax treaties with other nations, adding provisions designed to counter tax avoidance by multinational groups and to force Panama to speed up the resolution of double taxation claims brought by multinational groups.
These provisions were agreed to by nations as a result of the 2015 OECD/G20 base erosion profit shifting (BEPS) project.
Panama is the 56th nation to ratify, accept, or approve the MLI. The OECD said that as of January 1, about 600 existing bi-lateral tax treaties between the 56 jurisdictions will be amended as a result of the MLI.
Be the first to comment