Australia has ratified the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (the Multilateral Instrument) by depositing its instrument of ratification, acceptance or approval with the Organisation for Economic Cooperation and Development (OECD) on 26 September 2018.
The Multilateral Instrument will enter into force for Australia on 1 January 2019.
The Multilateral Instrument is a legal instrument designed to prevent base erosion and profit shifting (BEPS) by multinational enterprises. It allows jurisdictions to transpose results from the OECD/G20 BEPS Project, including minimum standards to implement in tax treaties to prevent treaty abuse and “treaty shopping”, into their existing networks of bilateral tax treaties in a quick and efficient manner.
France and Japan also deposited their instrument of ratification or acceptance on the same day.
See main features of the Multilateral Instrument and Australia’s final adoption provisions.
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