More than 100 jurisdictions have concluded negotiations on a multilateral instrument that will swiftly implement a series of tax treaty measures to update international tax rules and lessen the opportunity for tax avoidance by multinational enterprises.
The new instrument will transpose results from the OECD/G20 Base Erosion and Profit Shifting Project (BEPS) into more than 2 000 Tax Treaties Worldwide.
A signing ceremony will be held in June 2017 in Paris.
The OECD/G20 BEPS Project delivers solutions for governments to close the gaps in existing international rules that allow corporate profits to « disappear » or be artificially shifted to low or no tax environments, where companies have little or no economic activity.
Revenue losses from BEPS are Conservatively Estimated
at USD 100-240 Billion Annually!
Which is Also the Equivalent of 4-10%
of Global Corporate Income Tax Revenues.
“The adoption of this multilateral instrument marks a turning point in tax treaty history,” said OECD Secretary-General Angel Gurría. “It will save countries from multiple bilateral negotiations and renegotiations to implement the tax treaty changes in the BEPS Project. More importantly, having more than 100 jurisdictions on board will help ensure consistency in the implementation of the BEPS Project, which will result in more certainty and predictability for businesses, and a better functioning international tax system for the benefit of our citizens.” Read the speech.
The OECD will be the depositary of the multilateral instrument and will support governments in the process of its signature, ratification and implementation. A first high-level signing ceremony will take place in the week beginning 5 June 2017, with the expected participation of a significant group of countries during the annual OECD Ministerial Council meeting, which brings together ministers from OECD and partner countries to discuss issues of global relevance.
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Read more at: Tax Times blog