OECD: Multilateral convention implementing BEPS - KPMG Global
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OECD: Multilateral convention implementing BEPS; signing ceremony on 7 June

OECD: Multilateral convention implementing BEPS

The Organisation for Economic Cooperation and Development (OECD) today issued a release noting that on Wednesday, 7 June 2017, officials from more than 60 countries and jurisdictions will sign a multilateral convention to reduce the opportunity for tax avoidance by multinational enterprises.


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The “Multilateral Convention to Implement Tax Treaty Related Measures to Prevent BEPS” includes:

  • Provisions intended to address the effects of hybrid mismatch arrangements in accordance with Action 2 of the BEPS project
  • Provisions addressing the granting of treaty benefits in inappropriate circumstances under BEPS Action 6
  • Amendments to the definition of "permanent establishment" as recommended under BEPS Action 7
  • Changes to facilitate access to and resolution of mutual agreement procedures consistent with BEPS Action 14 (including a mandatory binding arbitration provision that is very similar to that found in U.S. tax treaties)

The multilateral instrument enables all signatories to meet the treaty-related minimum standards under the BEPS project (the minimum standard for the prevention of treaty abuse under Action 6 and the minimum standard for the improvement of dispute resolution under Action 14).  Given that these minimum standards can be satisfied in different ways and that there are optional provisions included in the multilateral instrument as well, the OECD has proposed that the multilateral instrument provides flexibility in various ways to accommodate the positions of various countries.

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