The Economy, Banking, Finance, and Financial Intelligence Committee of the Peruvian Congress approved a bill to ratify the Multilateral Convention to Implement Tax Treaty Related Measures to Prevent Base Erosion and Profit Shifting (MLI) on 6 November 2024.
Peru presented its provisional position regarding the MLI at the time of signing, detailing its reservations and notifications, and specifying seven tax treaties that it intends to include under the MLI framework.
Once the internal ratification process is completed, its ratification instrument to bring the MLI into effect for its tax treaties will need to be deposited. The MLI will come into force for a specific tax treaty on the first day of the month following a three-month period after both parties have deposited their ratification instruments.
The provisions of the MLI will apply to withholding taxes from 1 January of the year following its entry into force and to other taxes for taxable periods beginning six months after the MLI’s entry into force.
