Qatar today signed a multilateral tax treaty designed to stop tax avoidance techniques used by multinational groups and to help speed cross-border tax dispute resolution.
Qatar is the 85th jurisdiction to join the treaty, called the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting, or MLI, the OECD announced.
The treaty will allow Qatar to swiftly add provisions to its existing bilateral tax treaties that were agreed to in the 2015 OECD/G20 base erosion profit shifting (BEPS) project.
These provisions are designed to curtail a tax avoidance maneuver known as tax treaty shopping and avoid the creation of a taxable permanent establishment in a permanent. The MLI also aids tax dispute resolution, a frustratingly slow process for multinational groups.
The OECD said that with Qatar’s entry, the MLI now covers almost 1,500 bilateral tax treaties.
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