The Base Erosion and Profit Shifting (BEPS) Multilateral Convention now has 78 signatories, the Organisation for Economic Co-Operation and Development (OECD) recently announced. In addition, more jurisdictions are expected to sign onto the multilateral convention, the OECD added.
BEPS Multilateral Convention
The OECD developed the BEPS initiative to curb tax avoidance by taxpayers seeking to artificially shift profits to low or no-tax locations where there is little or no economic activity. Therefore, the BEPS Multilateral Convention is designed to modify existing bilateral tax treaties to address treaty abuse, dispute resolution and more.
Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama, and Tunisia are the latest jurisdictions to sign the BEPS Multilateral Convention. Accordingly, this brings the total number of signatories to 78.
“The signing of the multilateral convention is another major step towards updating the international tax rules through the swift implementation of the BEPS package,” OECD Secretary-General Angel Gurría said. “Beyond saving signatories from the burden of re-negotiating thousands of tax treaties bilaterally, the convention results in more certainty and predictability for businesses, and a better functioning international tax system.”
Moreover, Algeria, Kazakhstan, Oman, and Swaziland have expressed their intent to sign the BEPS Multilateral Convention, the OECD reported. Further, several other jurisdictions, which the OECD did not name, are in discussions with the OECD about the convention. The U.S. is not a signatory to the multilateral convention, the OECD reported.
By George L. Yaksick, Jr., Wolters Kluwer News Staff