The Deputy Finance Minister, Katerina Papanatsiou, signed the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”). More than 76 other countries and territories, Greece signed the Convention on 7th of June 2017 at Paris.
The Convention is a key outcome of the OECD/G20 Base Erosion and Profit Shifting (BEPS) project, which aims to offers concrete solutions for governments to close the gaps in existing international tax rules by transposing results from the OECD/G20 BEPS Project into bilateral tax treaties worldwide.
The convention contributes in reducing by multinational companies and avoiding double taxation, while creating a more stable and well-functioning global tax system. The Convention enables all signatories, inter alia, to meet treaty-related minimum standards that were agreed as part of the Final BEPS package, including the minimum standard for the prevention of treaty abuse under Action 6.
The effective date for MLI depends on the timing of domestic ratification process. The Convention will enter into force after signatories have completed their domestic requirements and deposited their instruments of ratification with the OECD.