Six more countries join BEPS Multilateral Convention
On 24 January, the BEPS multilateral agreement was signed by six new countries that will incorporate the recommendations thereby set in their future double taxation treaties.
The new signatories are Barbados, Cote d'Ivoire, Jamaica, Malaysia, Panama, and Tunisia, taking the total number of members up to 78.
Moreover, Algeria, Kazakhstan, Oman, and Swaziland manifested their intention to join the convention while many more jurisdictions are currently working to conclude their signature by June 2018.
When it comes to the ratification, the process proves to be slower: So far Austria, the Isle of Man, Jersey and Poland have ratified the agreement, which is foreseen to enter into force after the ratification of one-fifth of the jurisdictions deposit their instrument of ratification.
The BEPS Convention allows states to quickly incorporate changes into their tax agreements without the need of a state-per-state renegotiation.
The negotiations involve more than 100 countries and jurisdictions and address common problems like hybrid mismatches (the possibility to deduct two times the same costs) and the fixing of loopholes, together with systems of resolution of tax disputes.
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