On 24 January 2018, Malaysia signed the OECD Multilateral Convention to implement tax treaty related measures to prevent Base Erosion and Profit Shifting (“Multilateral Instrument” or “MLI”). At the beginning of 2017, Malaysia announced its intention to participate in the inclusive framework for global implementation of the BEPS Action Plan as a BEPS Associate.
The MLI provisions reflect the outcome of the 2015 OECD/G20 base erosion profit shifting (BEPS) plan and include provisions on hybrid mismatch arrangements, tax treaty abuse, permanent establishments, and dispute resolution, including mandatory binding arbitration.i
