Six more countries have signed the BEPS Multilateral Convention, namely Barbados, Côte d’Ivoire, Jamaica, Malaysia, Panama and Tunisia. Up to date, the total number of signatories reaches 78.
Alongside the six new signatories, there are another four jurisdictions – Austria, the Isle of Man, Jersey and Poland – which have recently ratified the Convention, which will enter into force three months after a fifth jurisdiction deposits its instrument of ratification. In addition to those signatories, Algeria, Kazakhstan, Oman and Swaziland have expressed their intent to sign the Convention, and a number of other jurisdictions are actively working towards signature by June 2018. “Today’s signing of the multilateral convention is another major step towards updating the international tax rules through the swift implementation of the BEPS package…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 for the benefit of our citizens,” according to OECD Secretary-General Angel Gurría.
Renegotiating tax treaties has always been a significant hurdle, which is time consuming, resource intensive and cumbersome, in particular under the BEPS context where several anti-avoidance provisions need to be introduced into the tax treaties. In this case, the Multilateral Convention enables governments to introduce BEPS recommendations in a flexible way and enhances dispute resolution mechanisms to improve certainty for taxpayers without the burdensome treaty-by-treaty negotiation process. Countries began signing the Convention in June 2017, when over 1100 bilateral tax treaties were amended.
With the fast growth of China’s economy and the continuous improvement of the comprehensive strength of domestic enterprises, as well as the implementation of the “One Belt, One Road” policy, an increasing amount of Chinese enterprises are beginning to expand their global footprint and establish their presence in Europe.
TPA Global has developed a practical roadmap of 6 steps meant to guide CFOs in their Journey of rising above troubles to reach a situation of full control. These steps are presented in a series of short video clips (3-5 minutes):